Chipmaker Micron forecasts negative free cash flow for first quarter
2022.08.09 14:18
FILE PHOTO: Micron Technology’s solid-state drive for data center customers is presented at a product launch event in San Francisco, U.S., October 24, 2019. REUTERS/Stephen Nellis/File Photo
(Reuters) -Memory chipmaker Micron Technology (NASDAQ:MU) said its free cash flow was expected to be negative for the fiscal first quarter and that it could see significant sequential declines in revenue and margins in the period due to a fall in shipments.
The company also said fourth-quarter revenue may come in at or below the low end of its previous forecast in June, further pointing to weakening demand from PC and gaming industries.
Other chip makers including Intel (NASDAQ:INTC), Advanced Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA) Corp and storage company Western Digital (NASDAQ:WDC) have warned of a slowing uptake from PC makers as inflation dents demand.
Micron forecast adjusted revenue for the current quarter at $7.2 billion, plus or minus $400 million. [nL4N2YH3MA ]
Micron Chief Financial Officer Mark Murphy will speak about the company’s revised forecast at KeyBanc Technology Leadership forum on Tuesday, the company said.
Shares of the company fell over 3% in trading before the bell.
