SanDisk Corp. on Wednesday reported steep drops in profit and revenue for its second quarter, though results came in above Wall Street expectations.
Shares gained about 8% in after-hours trading.
The Silicon Valley-based company, a major maker of flash-memory chips, had benefited from the explosive growth in demand for products such as smartphones. But its results have lagged behind recently amid a variety of problems, from product-qualification delays to lower-than-expected sales of enterprise products.
Compounding its problems was Apple Inc.'s decision to start designing its own controller chips and buying Samsung chips instead of SanDisk's solid-state drives, or SSDs.
For the period ended June 28, SanDisk reported a profit of $81 million, or 38 cents a share, down from $274 million, or $1.14 a share, a year earlier.
Excluding one-time charges, the company booked 66 cents a share in profit, sharply above analyst expectations for 33 cents a share in earnings, according to Thomson Reuters.
Revenue sank 24% to $1.24 billion, but still topped the $1.2 billion analysts had forecast.
Meanwhile, SanDisk's enterprise division, which includes SSDs and software used in data center applications, has also struggled. In the latest quarter, enterprise solutions made up 14% of the company's overall revenue, in line with the previous quarter and up from 8% a year earlier.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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