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Energy

MEMC Warning (WFR)

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By Douglas A. McIntyre Published
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MEMC Electronic Materials (NYSE: WFR) is seeing shares spanked this morning.  The company has issued downward guidance with Q1 revenues of about $500 million.  The problem is that previous guidance was $560 million and First Call was at $559.2 million.  It also sees Q1 gross margins of approx 52%, compared to prior guidance of about 54.8%.

The company experienced an accelerated buildup of chemical deposits inside the new expansion unit at its Pasadena, Texas facility on multiple occasions, and each instance required several days of downtime for maintenance to clean and re-stabilize the unit.  The utilization of the Pasadena facility was about 20% lower than Q4 and resulted in much lower than anticipated output.

Despite a softening economy and despite it being a materials supplier for semiconductors, this has become such a go-to supplier stock for solar cells materials that this much downside isn’t accepted by traders.

Shares closed at $76.39 yesterday, and they are trading down 10% in pre-market trading at $68.75 pre-market.  Its 52-week trading range is $49.70 to $96.08.

Jon C. Ogg
April 3, 2008

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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