If you'll pardon the metaphor, flash memory maker SanDisk
The latest ill was a pretty hefty price war that has decimated margins at competitor Lexar Media
SanDisk's revenues rocketed up 85% to $433 million, and earnings grew 46% to $0.38 per share. But the best news for shareholders had to be the 3% gain in gross product margins. It proved that management's aggressive pricing strategy wasn't a self-defeating effort to win the battle but lose the war.
And get this, that doesn't include the inputs from licensing the company's lucrative intellectual properties to a bevy of other technology firms, including Sony
In post-market trading yesterday, SanDisk popped 20%, and Lexar jumped 10%, ostensibly on SanDisk's good news. That makes very little sense. To judge by SanDisk's success and its gains in market share, Lexar will suffer. Despite the recently announcedEastman Kodak
For more Fool tech coverage of digital life:
-
What does 100 million mean to Apple
(NASDAQ:AAPL) ? - Take a look at Lexar's big lumps.
- Think digital cameras aren't that big a growth field? AskCanon
(NASDAQ:CAJ) .
Fool contributor Seth Jayson loves to invest with the leader, and that's why he owns shares of SanDisk but has no position in any other company mentioned. View his Fool profile here.