By Akanksha Rana and Stephen Nellis
(Reuters) – Micron Technology Inc <MU.O> on Tuesday forecast fiscal first-quarter revenue to be slightly below Wall Street estimates, in part because of a U.S. government ban on shipments of memory chips to Huawei Technologies Co Ltd.
Micron shares, which were volatile in extended trading, were down 2% at $49.84 after the company disclosed the Huawei hit.
Micron said Huawei accounted for roughly 10% of its revenue in the fiscal fourth quarter, which ended on Sept. 3. Chief Executive Sanjay Mehrotra said on a conference call with investors that the company was unable to shift those chips to other customers because it had only one month of notice before halting shipments to Huawei on Sept. 14.
Mehrotra said that the Huawei restrictions would negatively impact it fiscal first quarter, and “to a lesser extent” its fiscal second quarter.
Revenue for Micron, one of the biggest DRAM chip suppliers, jumped over 24% to $6.06 billion in the fiscal fourth quarter, beating analysts’ estimate of $5.89 billion, according to IBES data from Refinitiv.
The company expects fiscal first-quarter sales to be $5.2 billion, plus or minus $200 million, while analysts on average were expecting $5.31 billion.
Net income attributable to the company rose to $988 million, or 87 cents per share, in the last quarter, from $561 million, or 49 cents per share, a year earlier. (https://bit.ly/2EP3qEo)
Excluding items, Micron earned $ 1.08 per share, beating analysts’ estimates of 99 cents.
(Reporting by Akanksha Rana in Bengaluru and Stephen Nellis in San Francisco; Editing by Sriraj Kalluvila)
