SanDisk (NSDQ: SNDK) cited huge writedowns on assets and inventory charges as the reason it swung to a $1.86 billion ($8.25 per share) loss in Q4. That compares to GAAP net income of $106 million ($0.45 per share) in Q407. The revenue front also suffered at the Milpitas, Calif.-based flash memory card maker. SanDisk’s total Q4 revenue $864 million declined 31 percent on a year-over-year basis. Total revenue for FY08 of $3.35 billion declined 14 percent from $3.90 billion versus the year before. During the conference call, SanDisk told investors that it expects 2009 to be another “very challenging” year, though Chairman and CEO Eli Harari added that anticipated spending cuts announced for this year will allow it to get a better handle on pricing, AP reported. In a bid to raise some cash, the company is considering a dilutive equity offering. Release | Webcast

SanDisk (NSDQ: SNDK) cited huge writedowns on assets and inventory charges as reason it swung to a $1.86 billion ($8.25 per share) loss in Q4. That compares to GAAP net income of $106 million ($0.45 per share) in Q407. The revenue front also suffered at the Milpitas, CA-based flash memory card maker. SanDisk’s total Q4 revenue $864 million declined 31 percent on a year-over-year basis. Total revenue for FY08 of $3.35 billion declined 14 percent from $3.90 billion versus the year before. During the conference call, SanDisk told investors that it expects 2009 to be another “very challenging” year though Chairman and CEO Eli Harari added that anticipated spending cuts announced for this year will allow it to get a better handle on pricing, AP reported. In a bid to raise some cash, the company is considering a dilutive equity offering. Release | Webcast

SanDisk (NSDQ: SNDK) cited huge writedowns on assets and inventory charges as reason it swung to a $1.86 billion ($8.25 per share) loss in Q4. That compares to GAAP net income of $106 million ($0.45 per share) in Q407. The revenue front also suffered at the Milpitas, CA-based flash memory card maker. SanDisk’s total Q4 revenue $864 million declined 31 percent on a year-over-year basis. Total revenue for FY08 of $3.35 billion declined 14 percent from $3.90 billion versus the year before. During the conference call, SanDisk told investors that it expects 2009 to be another “very challenging” year though Chairman and CEO Eli Harari added that anticipated spending cuts announced for this year will allow it to get a better handle on pricing, AP reported. In a bid to raise some cash, the company is considering a dilutive equity offering. Release | Webcast

There falls another bigger deal: Samsung has withdrawn its proposal to acquire SanDisk...it launched a public bid for $26 per share in cash last month. The memory card maker rejected the bid right after, and it was only a matter of time before Samsung had to cave in, considering the current economic climate (not conducive to public takeovers), and of course SanDisk’s less-than-stellar earnings yesterday. From Yoon Woo Lee, the CEO of Samsung, in a public letter of to SanDisk’s board: “We have obligations to our own shareholders which require that we take a disciplined approach, particularly with respect to significant initiatives such as this. That disciplined approach requires that we squarely face the growing uncertainties in your business, which may continue to deteriorate in this difficult economic environment and further impact your standalone value. Your recently announced third quarter results serve only to illustrate this risk.  Your surprise announcements of a quarter billion dollar operating loss, a hurried renegotiation of your relationship with Toshiba and major job losses across your organization all point to a considerable increase in your risk profile and a material deterioration in value...As a result of these developments, we are no longer interested in acquiring SanDisk (NSDQ: SNDK) at $26/share.” Meanwhile, SanDisk has responded to this: “From the start of this process SanDisk’s Board has remained open to a transaction that recognizes SanDisk’s long-term value and contains the right protections for SanDisk’s shareholders. We repeatedly outlined a clear path to hold further discussions, including most recently in our letter on September 15, and Samsung consistently chose to ignore that path and, in fact, never contacted SanDisk regarding their proposal after we delivered our letter. We believe this raises questions about the real motivations behind Samsung’s offer.”

There falls another bigger deal: Samsung has withdrawn its proposal to acquire SanDisk...it launched a public bid for $26 per share in cash last month. The memory card maker rejected the bid right after, and it was only a matter of time before Samsung had to cave in, considering the current economic climate (not conducive to public takeovers), and of course SanDisk’s less-than-stellar earnings yesterday. From Yoon Woo Lee, the CEO of Samsung, in a public letter of to SanDisk’s board: “I continue to believe that a combination of our two companies would have created a superior global brand, an unparalleled technology platform and the scale and resources to drive convergence in the marketplace...we have obligations to our own shareholders which require that we take a disciplined approach, particularly with respect to significant initiatives such as this. That disciplined approach requires that we squarely face the growing uncertainties in your business, which may continue to deteriorate in this difficult economic environment and further impact your standalone value. Your recently announced third quarter results serve only to illustrate this risk.  Your surprise announcements of a quarter billion dollar operating loss, a hurried renegotiation of your relationship with Toshiba and major job losses across your organization all point to a considerable increase in your risk profile and a material deterioration in value, both on a stand-alone basis as well as to Samsung.  As a result of these developments, we are no longer interested in acquiring SanDisk (NSDQ: SNDK) at $26/share.”

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Visit StreetInsider.com at http://www.streetinsider.com/news.php?st=p&id=5323408 for the full story.

Flash memory maker, SanDisk (NASDAQ: SNDK), is seeing a large volume of call trading this morning across many strikes. The Feb and March 25, 26, and 27 strikes calls have each traded over 3,300 times, nearly all purchases; the July 27 calls were also purchased 1,000 times. The vast majority of this action is above open interest.

SanDisk is currently trading $26.53, up 0.61% on the day. The chart looks quite bearish in the name and it is barely holding onto the 50-day moving average, so this action is certainly raising eyebrows.

SanDisk (NASDAQ: SNDK) ended the last trading session at $26.09. So far the stock has hit a 52-week low of $7.53 and 52-week high of $32.08. SanDisk stock has been showing support around 24.78 and resistance in the 26.82 range. Technical indicators for the stock are Bearish and S&P gives SNDK a neutra...(Click the story link or go to http://www.marketintelligencecenter.com for the full story)

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