Sandisk reported some ugly numbers today. Most interesting is that gross margins were down about 7%! We knew numbers from Sandisk were going to be weak, and the weaker Flash pricing should benefit FIO. But we did not know it was going to be 7% weak.
Combine the lower cost of Flash throughout this quarter, with a relatively bullish backdrop as highlighted by Piper Jaffary earlier this month, FIO should do well.
I am hoping FIO management was able to take advantage. (I really like the management team, but operationally, they need to prove themselves. I am hoping they do this next week!)
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