SanDisk, the flash data storage product maker, has lowered its Q3 expectations.
The US company has predicted that product revenues for the quarter will be 35% down on the prior quarter's $88m. Previously, the company believed that revenues would remain unchanged.
A decline in average selling prices and lower unit shipments means gross margins are expected to be lower than projected too.
Where the company previously predicted a net loss of between $0.10 and $0.15 per share, it now expects the loss to be nearer to $0.60 per share.
Eli Harari, president and CEO of SanDisk, said: "Despite the very challenging conditions, we believe that the drastic price declines will translate into an elastic increase in demand for our products once market conditions improve."
SanDisk hopes to cut costs through the transition of production to 0.16µm Nand Flash. It expects to complete the winding down of its Nor flash products by Q4, a move that includes the shutdown of manufacturing at SanDisk's plant in Sunnyvale, California.