Chip Stocks Slump On Earnings (SNDK, RVBD, RMBS, MU, WDX)

Chip Stocks Slump On Earnings (SNDK, RVBD, RMBS, MU, WDX)

Shares of memory chips maker slid in early session led by two major companies SanDisk Corporation(NASDAQ:SNDK) and Riverbed Technology, Inc.(NASDAQ:RVBD), whose shares slumped after reporting weak quarterly earnings.

Riverbed Technology, Inc. (NASDAQ:RVBD) posted net income of  $7 million, or 4 cents per share, down from a year ago profit of $13 million, or 8 cents per share. On an adjusted basis, the company earned 20 cents a share, matching analysts’ estimates.

Revenue during the quarter came at $183 million, up 12% from a year ago, but missing the Street’s estimates of $186.1 million.

The company projects to earn 21-22 cents a share on revenue of $193 million to $197 million in the current quarter, below analysts’ estimates of 24 cents a share on revenue of $201.9 million.

The company projects to earn 21-22 cents a share on revenue of $193 million to $197 million in the current quarter, below analysts’ estimates of 24 cents a share on revenue of $201.9 million.

SanDisk Corporation (NASDAQ:SNDK) shares also slumped in the pre-open session as the company predicts weaker than estimated second quarter outlook.

The company posted net income of $114.4 million, or 46 cents a share in its first quarter, down from a year ago profit of $224.1 million, or 92 cents a share. On an adjusted basis, earnings stood at 63 cents a share, missing analysts’ estimates by 4 cents.

Revenue during the latest quarter slid 7% year-over-year to $1.21 billion, which matched analysts’ expectations.

The company projects to generate revenue of $950 million to $1.05 billion in the current quarter, well below analysts’ forecast of $1.29 billion estimate.

Shares of RVBD slumped 26.60% to $20.45 and SNDK lost 12.53% to $35.40.

Other stocks within the sector were also under pressure with Micron Technology, Inc. (NASDAQ:MU) down 3.50% to $6.76, Western Digital Corp. (NYSE:WDC) fell 1.17%.

Rambus Inc.(NASDAQ:RMBS) fell 5.5% after reporting a first quarter loss of $27.89 million or $0.25 per share, up from a year ago loss of $4.23 million or $0.04 per share On an adjusted basis, the company earned 3 cents. Revenue during the quarter edged up to $62.86 million from $62.53 million in the same quarter last year.