(CercleFinance.com) – Micron announced on Tuesday that its quarterly sales were at risk of not reaching its initial forecasts due to market conditions deemed unfavorable.
The warning was poorly received on Wall Street, where the memory manufacturer’s action lost more than 4.8% at the start of the session on the Nasdaq.
During a conference organized by the American investment bank KeyBanc, the specialist in integrated circuits indicated that it was not sure to reach the lower limit of its range of forecasts provided for the current quarter. .
Its turnover for the fourth quarter could thus come out in the lower part, or even below, the objectives which had been communicated during its last publication of results, on June 30.
The group from Boise (Idaho) explains that the demand for DRAM and NAND memories has deteriorated since the presentation of its accounts, in addition to the macroeconomic difficulties and the current supply problems.
Under these conditions, Micron says it expects a “complicated” market environment in the fourth quarter of its 2021/2022 fiscal year, which will end in early September, but also in the first of its 2022/2023 fiscal year, which should show a sequential decline in sales and margins, as well as negative free cash flow.
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