UPDATE 1-Smart Modular cuts Q3 outlook, shares fall
(Recasts; adds details, share movement)
May 20 (Reuters) - Chipmaker Smart Modular Technologies Inc SMOD.O lowered its third-quarter outlook, partly due to an extended difficult DRAM pricing environment and higher tax rate, sending its shares down by as much as 20 percent.
On a GAAP basis, the company expects to post a loss of 2 cents to 4 cents a share. It had previously expected to earn about as much as it did in the second quarter. In the second quarter, it recorded a profit of 17 cents a share.
However, excluding about 9 cents a share related to the in-process research and development write-off associated with the acquisition of privately held Adtron Corp, Smart Modular expects to earn 5 cents to 7 cents a share.
Smart Modular, whose customers include Hewlett-Packard Co (HPQ.N: Cotización) and Advanced Micro Devices AMD.N, now expects third-quarter revenue of $150 million to $155 million, down from its prior view of $160 million to $170 million.
Analysts on average were expecting earnings of 17 cents a share, before special items, on revenue of $164.9 million, according to Reuters Estimates.
Shares of the Fremont, California-based company were down $1.12 at $5.31 in morning trade on Nasdaq. They touched a low of $5.13 earlier in the session. (Reporting by Eric Yep in Bangalore; Editing by Himani Sarkar)
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