PC makers warned the company that supply chain disruptions for other parts would result in a reduced need for chips, which have suffered through their own production issues amid the reopening of the global economy from COVID-19 restrictions.
Shares of the Boise, Idaho-based Micron fell more than 3% in early trading and were flirting with their lowest close in nine months.
|MU||MICRON TECHNOLOGY INC.||77.59||-1.12||-1.43%|
"In the near term, our FQ1 bit shipments will decline modestly in both DRAM and NAND from very strong levels in FQ4," said Micron CEO Sanjay Mehrotra on the company’s fourth-quarter earnings call on Tuesday evening.
"Some PC customers are adjusting their memory and storage purchases due to shortages of non-memory components that are needed to complete PC builds," he added. "We expect this adjustment at our PC customers to be largely resolved in the coming months."
Micron, as a result of the drop in PC customer demand, issued quarterly sales guidance for the three months ending in November of about $7.65 billion compared with the $7.7 billion expected by analysts surveyed by Refinitiv.
Adjusted quarterly profit is anticipated to be between $2 and $2.10 per share versus the Wall Street consensus of $2.18.
Still, the company expects strong demand in 2022 with plans to deliver "record revenue with solid profitability," according to Mehrotra.
Micron reported fiscal fourth-quarter net income of $2.72 billion, or $2.39 a share, up from $988 million in the year-ago period. Revenue rose 37% year over year to $8.27 billion.
Shares were down 2.77% this year through Tuesday while the S&P 500 was up 16%.