World renowned memory chipmaker Micron Technology Inc. has exhibited a loss in its forecast for the second quarter, as the company is embattled in a struggle to overcome a weak demand for chips used in personal computers and lower average selling prices, according to Yahoo! Finance.
Micron has made a name for itself as one of the world's most renowned firms in information technology, making DRAM and NAND flash memory chips. DRAM memory chips are primarily used in PCs while its NAND memory units are usually used for mobile devices.
According to the company's forecast for the second quarter, the company perceives a loss of $0.05 to $0.12 per share and net sales of $2.9 billion to $3.2 billion. Analysts have previously expected the company to report earnings of $0.22 per share for the second quarter on revenues of $3.46 billion, reports NASDAQ.
Wedbush Securities analyst Betsy Van Hees stated that the current trends in Micron's finances are a result of a number of factors.
"We have a perfect storm going on here. We have a seasonal weak quarter. We have weaker-than-expected end-market demand. We have pricing headwinds," she said.
After the announcement, Micron's shares dropped almost 6 percent. Up to Tuesday's close, the company's shares have already dropped about 58 percent this year, according to Pop Herald.
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