(Reuters) - Memory chipmaker SanDisk Corp (NASDAQ:SNDK) reported its first fall in quarterly revenue in two years and plans to cut jobs to reduce costs as it struggles to meet demand for its flash-based memory products.
SanDisk's adjusted profit also fell short of analysts' average estimate, sending the company's shares down nearly 6 percent in after market trading on Wednesday.
The company, which has also faced issues of unplanned maintenance at its chip foundry, plans to reduce its non-factory headcount by about 5 percent, it said on a conference call.
SanDisk makes flash memory-based products for cloud computing and datacenters, as well as for digital cameras, smartphones and other mobile devices.
But lower pricing, lean inventory and weaker-than-expected sales of storage products had forced the company to cut its first-quarter and full-year sales forecast last month.
SanDisk's revenue fell nearly 12 percent in the first quarter ended March 29 to $1.33 billion, in line with its lowered expectations and slightly topping analysts expectation of $1.31 billion.
Net income fell to $39.0 million, or 17 cents per share, from $268.9 million, or $1.14 per share, a year earlier.
On an adjusted basis, the company earned 62 cents per share, which fell short of analysts estimates of 66 cents per share, according to Thomson Reuters I/B/E/S.
SanDisk had said in January it had lost a major customer, widely believed to be Apple Inc (NASDAQ:AAPL), which switched to using solid state drives made by Samsung Electronics (KS:005930) Co Ltd in its MacBooks.
The company's shares were down 5.7 percent at $67.04 in trading after the bell.
The stock has lost just over a quarter of its value this year, which analysts say makes SanDisk an attractive target for companies looking to boost their presence in the enterprise market.