MEMC cuts Q1 rev outlook on plant disruptions
April 3 (Reuters) - MEMC Electronic Materials Inc WFR.N lowered its first-quarter revenue outlook, missing market estimates, citing disruptions at one of its facilities, sending its shares down 11 percent.
The company said the disruptions caused utilization at its Pasadena, Texas, facility in the first quarter to drop about 20 percent from the fourth quarter.
The company, which supplies silicon wafers to the chip and solar industries, said it experienced accelerated buildup of chemical deposits inside the new expansion unit at the facility.
For the first quarter, MEMC now expects revenue of about $500 million, compared with its earlier forecast of $560 million.
MEMC also lowered its first-quarter gross margin to about 52 percent from its earlier forecast of about 54.8 percent. Analysts on average were expecting the company to post revenue of $558.94 million, according to Reuters Estimates.
Shares of the company fell 11 percent in trading before the bell to $68. They closed at $76.39 Wednesday on Nasdaq. (Reporting by Purwa Naveen Raman in Bangalore; Editing by Jarshad Kakkrakandy)
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