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MEMC Electronic Materials sinks after warning of weak chip demand |
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| Sep 03, 2008 11:55 AM UTC |
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Tracked Blogger
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Via BloggingStocks:
Filed under: Earnings reports, Stocks to Sell, Technology After the closing bell last night, silicon-wafer producer MEMC Electronic Materials (NYSE: WFR) offered a mid-quarter update that's sent the shares reeling into negative territory this morning. The report started auspiciously enough, as CEO Nabeel Gareeb noted that current production rates "could allow us to achieve results in the upper half of our targeted financial range" of $560 million to $620 million in revenue. His comment seemed to indicate that MEMC might exceed analysts' expected revenue of $596.7 million, as reported by Thomson Financial. But Gareeb then tempered his optimism by adding, "However, there is increased softness in demand from semiconductor applications customers, primarily due to their inventory reduction initiatives. These elements warrant a continued degree of caution in our outlook, given the amount of time left in the quarter." Additionally, MEMC warned that it expects operating expenses of approximately $43 million for the third quarter, up from its previous projection of $41 million. The increase is largely attributable to one-time, non-cash severance-related expenses. Continue reading MEMC Electronic Materials sinks after warning of weak chip demand Permalink | Email this | Comments<map name="google_ad_map_145-1303019"><area href="http://imageads.googleadservices.com/pagead/imgclick/145-1303019?pos=0" shape="rect" coords="1,2,367,28" /><area href="http://services.google.com/feedback/abg" shape="rect" coords="384,10,453,23" /></map> 
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