Lexar Media Inc, a maker of removable memory cards, on Wednesday cut its fourth-quarter financial forecast and said it had identified material weaknesses in its financial controls. Shares of Lexar, which also requested a 15-day extension to complete its annual regulatory report, fell 18 percent in after-hours trading. In a statement, Lexar said it now expected to report a fourth-quarter loss of between $60 million and $65 million, on revenue of $185 million to $190 million. In January, the company forecast a loss of $34 million to $38 million and revenue of $255 million to $260 million.
Lexar has twice delayed its fourth-quarter earnings release, and on Wednesday said it was still trying to finish accounting for revenue.
The company said it has switched to recording revenue from retail customers on a "sell-through" basis - or when the retailer sells the products - rather than on a "sell-to" basis.