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Sandisk CEO Sanjay Mehrotra on the company’s third-quarter earnings and outlook.
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One stock in the S&P 500 technology index and their seventy tech stocks in the S&P 569.
Down.
One up it is SanDisk after reporting better than expected third quarter results.
Take a look revenue climbed 23%.
Since last quarter.
But here's the kicker.
Third quarter profits are down 67%.
Since last year total revenue also down 10% year -- here.
But is this a quarter turnaround for the chipmaker.
Soc camera -- is the CEO of SanDisk he joins us now from bill Peters California in a Fox Business exclusive is just amazing we we got to pick up but Fox Business because again having -- -- -- -- -- tech stocks in the S&P 500 down.
We've got you you're the one that's moving higher today what is it about this quarter -- gotten three upgrades and a stock that's moving higher by 4%.
Palin is good to be on the show -- and that is Q3 was a -- -- foreseen this.
We deliver its strong sequential revenue growth.
C himself -- mainly in embedded applications.
Embedded inside -- -- -- phones tablets grew substantially.
On the sequential basis as well as solid retail business than it did -- -- widely believed begin shares patents in was young if he's in the -- And SanDisk also expanded dollar profit margins and -- looking at -- a good outlook for the fourth quarter that's.
We -- -- that three analysts agree with you at least -- and and I just want to let our viewers know when you say sequentially perhaps that's really what got their attention quarter over quarter.
You saw improvement of the year over year yet down 67% but.
-- this is such a cyclical business meaning if there is too much inventory the stock drops if there's -- -- less inventory right now there seems to be a little bit.
Of a squeeze when it comes to the inventory so predict what happens in the next couple of weeks -- I've covered you for so long it really is is very much a month by month type of company.
Did they list environment in other industries have the -- demand for Flash Memory in Smartphones tablets.
I thought ten notebook computers as well as less now -- -- send it doesn't doesn't demand is growing that Britney.
And environment cannot invest in terms of demand and supply balance is -- well and this is what is really being leading us to -- -- -- strong revenue growth in the fourth quarter of Israel and outlook for 2013 put out and does she is very as well because.
It is -- strong demand supply balance that we expected 2013.
Demand continues to grow -- bought -- products and -- its position in the marketplace.
Continues to strengthen as well.
Well yesterday people were not focused on SanDisk are frankly many other stocks that were focused on Google of Larry Page came out we were we were listening so closely to his his earnings call.
After the bell at and he said one thing and I want but you know your thoughts on us he said we all now feel naked.
Without our Smartphones.
I mean we're embarrassed -- all of admit -- -- we we're so used to gripping it in our little pod now that we feel frantic without it but how.
Much can you really capitalized with fewer Flash Memory business on everything that's out there and particularly you know -- -- giant in all of this.
Commute can you at least talk about that.
Then they -- -- -- is in all of these Smartphones.
It's in these tablets.
And these devices itself -- connect people around the -- love these devices.
These are the heart does devices -- around these days and that demand for the -- continue to -- because they -- the in the book Smart digital lifestyle and even for professionals you know it needs them more productive.
So this is the trend that is really haven bid beyond the supply -- mainly yemenite in the -- though.
-- the streets blog of the market trends and I believe that this trend has continued to grow.
You know if you look at industry -- -- this year 600 Smartphones -- sort of one of Lloyd in a matter of -- three years one billion Smartphones.
Going to be getting sort but yet and fashion is going to be a key enabler in these devices.
Deployed expedience.
That you and I have become so used to write -- that it is sketching out business information or pictures or videos and shedding them.
Everything -- and it's almost disposable now the newer one comes out everybody gets rid of the one that they had.
-- not talk before especially recently about your enterprise or business customers can you give me twenty seconds on on how that's changing and will you eventually you're gonna get mad at me for asking this question but would you eventually get out of the removable Flash Memory business and that would be your retail business.
And so -- let me tell you that he -- business is a very important part of send us business it's a solid business.
SanDisk brand is number one -- Lloyd Lloyd B would absolutely continue.
To support and drive that he did business -- send us you know we get good margins would profitability.
On this business severe committee committed to continuing to live -- send -- then do.
Role on the tail business wanna avoid the guiding enterprise this is exciting apportioning photos we are doing -- over the broad portfolio products.
In this market -- has -- and we look forward to driving strong growth in this segment.
While you're here you're having strong growth in the stock today and that's that's a rarity up 4%.
For the stock on these news and good to see sought to suck -- -- -- -- -- -- UC Berkeley grad so this week at the big game against Stanford go bears right.
This statement absolutely used that can't as the Berlin I know right until they don't the closing bell I think -- 28 --
