Micron Falls After CFO Says Outlook Worse for Memory Chip Demand
(Bloomberg) -- Micron Technology Inc., the biggest U.S. maker of computer memory chips, said the outlook for demand is worsening and predicted it’s unlikely to meet its revenue forecast for the fiscal first quarter. Shares dropped about 5% on the comments.
Demand in current period, which ends in August, is “back-end loaded,” Chief Financial Officer Dave Zinsner said Thursday during a KeyBanc Capital Markets online technology conference. For the three-month period ending in November, the company is no longer on track for the sales outlook of $5.4 billion to $5.6 billion, he said.
“Suffice it to say, it’s probably somewhat weaker than that range,” he said.
Zinsner said customers’ plans are “moving around” based on their response to the economic recession caused by the Covid-19 pandemic. Micron had projected sales of $5.75 billion to $6.25 billion for the current fiscal fourth quarter.
Memory chips from Boise, Idaho-based Micron are a key part of all types of computers -- from laptops to servers -- and also act as data storage in smartphones. The company competes with Samsung Electronics Co. in the market for both dynamic random access memory and flash memory.
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