Salem Radio Network News Monday, October 25, 2021

Business

Chipmaker Micron forecasts tepid revenue on production woes

(Reuters) -Micron Technology Inc on Tuesday forecast first-quarter revenue below Wall Street expectations, as shortages in chip-making materials appeared to be catching up with the memory chip maker, sending its shares down about 5% in extended trading.

The tepid forecast from Micron, one of the world’s biggest memory chip suppliers, signals an easing in demand for chips in certain end markets such as personal computers as majority of pandemic-led hybrid work shift has already taken place.

Micron benefited from the pandemic last year due to a shift to remote work. The company makes both NAND memory chips that serve the data storage market and DRAM memory chips that are widely used in data centers, personal computers and other devices,

In the fourth-quarter ended Sept. 2, Micron earned $2.42 per share on an adjusted basis, beating analysts’ average estimate of $2.33 per share.

Micron’s sales also jumped 36.4% to $8.27 billion.

The company in June had forecast its fourth-quarter sales above expectations, as it benefited from tight supplies of memory chips and continued strong demand kept prices high.

Micron forecast current-quarter revenue of $7.65 billion, plus or minus $200 million, while analysts on average were expecting $8.57 billion, according to IBES data from Refinitiv.

(Reporting by Tiyashi Datta and Manas Mishra in Bengaluru; Editing by Shounak Dasgupta and Shinjini Ganguli)

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