Irvine’s Netlist Inc., a maker of memory products, lowered its outlook for first-quarter results, citing unsold products and weak demand from two big customers.
Netlist expects sales of $37 million to $38 million for the quarter, down from its earlier estimate of $40 million to $42 million.
Wall Street expected first-quarter sales to come in around $41 million.
The company also lowered its profit views to $392,000 to $588,000. That’s down from the company’s previous estimate of $1.4 million to $1.6 million.
At a recent check, Netlist had a market value of about $117 million.
The company said there was a glut in supplies of its dynamic random access memory boards, or DRAM.
“Our operating results for the first quarter were adversely impacted by the oversupply of DRAM,” said Chief Executive Chuck Hong. “We also experienced lower than expected volume of high-end products from two large customers due to reduced demand across those customers’ server platforms into which our products are incorporated.”
Netlist didn’t name the customers.
Netlist supplies circuit boards with memory chips to Dell Inc. and other computer makers.
The company is set to report first quarter results in early May.
Netlist went public with a $43 millino initial public offering in November. Shares first debuted at the low end of their $7 to $9 range, but quickly surged that day, climbing some 35% at their peak.
The company expects second-quarter sales of $34 million to $36 million. It cited costs related to a building a manufacturing plant in China and the softness it’s seen in the memory board market.
Shares fell 15.5% in afterhours trading.
