FREMONT, Calif.--Reportedly hit hard by falling flash-memory prices, Lexar Media Inc., a supplier of flash-memory cards and other products, Tuesday (June 29) lowered its sales forecast and projected a loss for the quarter.
The company now expects second quarter net revenues will be in a range of approximately $155-to-$160 million, compared with $81.5 million in net revenues for the same period last year and $164.7 million for the first quarter of 2004.
The company further expects to report a net loss in the range of $17 to $19 million, as compared to net income of $7.0 million in the same period last year and $9.4 million in the first quarter of 2004.
"Greater than anticipated price reductions and price protection obligations during the quarter negatively impacted product revenues and gross margins," according to the company. "Additionally, the combination of the timing of cost reductions, component purchases and product sales during the quarter resulted in the company not being able to fully recognize the benefits of lower costs achieved during the quarter."