of its flagship iPhone came in below Wall Street's targets.
SanDisk's gross margin in the December quarter improved to 39 percent from 30 percent in the September quarter. For the March quarter, SanDisk expects a gross margin of 38 percent, plus or minus 2 percentage points.
Pacific Crest analyst Monika Garg said investors are adjusting to slower growth in the NAND chip industry after years of explosive expansion.
The chipmaker earned $214 million, or 87 cents per share, in the December quarter, compared to $281 million, or $1.14 per share, in the year-ago period.
Revenue fell 2 percent year over year to $1.54 billion.
Analysts on average were expecting revenue of $1.526 billion in the fourth quarter.
Excluding items, it earned $1.05 a share. Analysts had expected earnings of 76 cents a share.
The company's shares fell 3.46 percent to $46.00 in extended trade, after closing down 0.63 percent on Nasdaq.