Lexar: Flash in the Pan

The flash memory maker warns of a steep fourth-quarter loss.
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Lexar Media

(LEXR)

plunged 29% late Tuesday after the maker of flash memory cards warned of a steep fourth-quarter earnings shortfall.

The Fremont, Calif., digital media manufacturer said it expects sales for the quarter ended Dec. 31 to handily beat Wall Street's estimates, coming in at $255 million to $260 million. That's up from $177 million a year earlier and well ahead of the Thomson First Call consensus estimate of $228 million.

But Lexar said it expects to lose 44 to 48 cents a share for the quarter, reversing the year-ago earnings of 21 cents a share and falling short of the Wall Street estimate, which called for a 2-cent profit. The company cited high costs and steep price cuts.

Lexar expects to post full fourth-quarter numbers Feb. 3.

Late Tuesday, its shares dropped $1.87 to $4.50.