Micron Technology Inc., the biggest U.S. maker of memory chips, forecast fiscal third-quarter sales that will fall short of analysts’ estimates as orders for personal-computer components slow.
Revenue in the period that ends in May will be $3.8 billion to $4.05 billion, the Boise, Idaho-based said in a slide presentation posted Wednesday on its website. Analysts on average had predicted sales of $4.27 billion, according to data compiled by Bloomberg.
Micron is the latest chipmaker to signal it’s being hurt by declining demand for computers, a market that provides about 30 percent of its sales, according to an estimate from Nomura Securities International. Intel Corp., the world’s largest semiconductor maker, last month said first-quarter sales may be more than $1 billion lower than originally forecast, damping optimism for a pickup in PC shipments after a three-year drop.
Micron shares slipped 2 percent in extended trading following the forecast. Earlier, they had rallied after the company reported sales and profit that beat analysts’ estimates for the quarter that ended March 5. The stock, which has lost 23 percent of its value this year, was unchanged at $27.13 at the close in New York.
Sales in the second quarter rose 1.4 percent to $4.17 billion, the slowest increase in two years. Profit excluding certain items was 81 cents a share, Micron said Wednesday in a regulatory filing. That compared with the average of analysts’ estimates for revenue of $4.15 billion and profit of 73 cents.
Net income rose to $934 million, or 78 cents a share, from $731 million, or 61 cents, a year earlier.
Worldwide PC shipments will fall 4.9 percent this year as the strong U.S. dollar and the lack of new products threaten sales, IDC estimated on March 12 -- a bigger drop than the market researcher had previously forecast.
While Micron’s growth has slowed, the company is avoiding losses during the prolonged PC slump as a broader range of devices use its semiconductors to store information. Micron is getting an increasing portion of its sales from smartphone makers and memory chips used in servers and networking equipment.