Micron Technology, a well-known memory chipmaker, made a forecast for their quarterly revenue on Tuesday. The company’s revenue forecast did not meet the expectation of Wall Street due to a drop on output as the company chose to improve its DRAM production lines. The shares of the company also dropped.
Micron is known to be among the world’s best maker of NAND and DRAM chips for smartphones, personal computers and the likes. The company boasted its 13 percent hike on its revenue for the first quarter ended 4th of December 2014. However, after this increase on its revenue, the company stated that they are expecting its revenue to decrease between $4.1 billion and $4.3 billion.
According to the date gathered by Thomson Reuter, the $4.1 billion to $4.3 billion expectation of Micron Technology is far lower than the analysts’ average revenue anticipation of $4.528 billion for the second quarter.
Mark Durcan, who is the chief executive of the company, told the analysts that the company’s low revenue forecast for the second quarter is due to the fact that they expect their production of DRAM chips to be down for the second quarter. They are expecting this because they are currently reconfiguring production lines with advanced technology.