(Bloomberg) -- Micron Technology Inc., the largest US maker of memory semiconductors, said fourth-quarter sales may come in at the low end of or below its previous guidance after customers scaled back their own inventories.
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Bit shipments will decline sequentially in the first quarter and there will be “significant sequential declines in revenue and margins,” Micron said in a regulatory filing on Tuesday.
The company plans to reduce its capital spending on wafer fab equipment for fiscal 2023 and expects total capex to be “down meaningfully” from a year earlier. The market for Micron’s semiconductors has deteriorated since the company last gave an update just over a month ago.
Micron previously said sales would be about $7.2 billion in its fiscal fourth quarter, far below the analyst estimate of $9.14 billion at the time. Consumers and businesses have been reining in spending amid fears that major world economies are headed for recession.
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Shares dropped about 5% in trading before exchanges opened in New York. Micron has declined about 34% so far this year.
“Due to macroeconomic factors and supply chain constraints, we have seen a broadening of customer inventory adjustments,” the company said in the filing, adding that it expects a “challenging market environment” this quarter and next.
Chief Financial Officer Mark Murphy will provide an update on Micron’s financial outlook at the KeyBanc Technology Leadership Forum at 8:30 a.m. Colorado time, the company said.
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