MU - Micron slips after it says half of China revenue at risk

2023-06-16 09:46:23 ET

• Micron Technology ( NASDAQ: MU ) shares fell nearly 2% on Friday after the company said that approximately half of its revenue from China is at risk of being lost.
• "As previously disclosed, Micron’s revenue with companies headquartered in mainland China and Hong Kong, including direct sales as well as indirect sales through distributors, is approximately a quarter of Micron’s worldwide revenue and remains the principal exposure," the company said in an 8-K filing , referencing the ongoing review by China's Cybersecurity Administration over its products in the country.
• "We now believe that approximately half of that China HQ customer revenue, which equates to a low-double-digit percentage of Micron’s worldwide revenue, is now at risk of being impacted."
• The company added it is working to mitigate the impacts over time and "expects increased quarter-to-quarter revenue variability."
• Last month, China said it found Micron Technology's ( MU ) products have "relatively serious" potential network securities issues and warned operators of critical information infrastructure to stop purchasing the goods.
• Developing story...

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