April 9, 2009 / 9:11 PM / 9 years ago

UPDATE 1-MEMC slashes Q1 gross margin view, shares fall

* Cuts Q1 gross margin outlook to 9 pct of sales

* Sees Q1 rev $214 mln vs. est $224.4 mln

* Shares fall 10 percent

April 9 (Reuters) - Silicon wafers maker MEMC Electronic Materials Inc WFR.N slashed its gross margin outlook for the first quarter, citing lower pricing and underutilization charges, sending its shares down as much as 10 percent in trading after the bell.

MEMC now expects gross margins to be about 9 percent of sales, compared with its previous expectation of gross margins declining to the 20 percent range.

It forecast first-quarter revenue of about $214 million, in line with its prior outlook of a 50 percent drop in revenue from the fourth quarter.

Analysts were expecting revenue of $224.4 million, according to Reuters Estimates.

MEMC shares were down $1.94 in trading after the bell. They closed at $18.94 Thursday on the New York Stock Exchange.

For the alerts, double-click here [ID:nWNAB2526] (Reporting by Deepti Govind in Bangalore; Editing by Ratul Ray Chaudhuri)

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