SNDK CC recap !!!

Here is the recap of SNDK CC :

Sales projected for Q2 $625 million to $725 million range..so the mean estimate for sales is $675 million which is much lower than expected $832.93 million.

This shortfall in Sales is attributed to a multitude of factors like :

-Elimination of joint venture with Toshiba Corp.

-Continued decline in company's "white label" USB business which produces devices that are sold under different brand names.

Gross margin to be 15 to 20% on a non GAAP basis.

SNDK is expecting growth in unit sales for Q2.

The bottom line on SNDK CC is that they are expecting Q2 & Q3 to be an ongoing challenge.

SNDK expects Q4 & next year to be very good based on usage of Flash drives in many many gadgets like iphone,smart phones & portable media players are expected to ignite demand for next year.

"Our outlook is optimistic for renewed growth heading into 4th quarter of 2007 and forward to 2008"Harari said.

CEO believes he is executing the correct strategy for achieving long term strategic goals in the market.

We will see how the analyst support is in the morning.

Good luck on your decision to sell or buy more !!!!

Saleem