MEMC shares fall after lackluster 2nd-quarter forecast

Sales rose to $501.4 million from $440.4 million.

Analysts polled by Thomson Financial expected profit of 85 cents per share and revenue of $500.8 million.

Lehman Brothers analyst Tim Luke said the first-quarter results were broadly in line with Wall Street estimates, but described the company's second-quarter outlook as "conservative".

MEMC shares may come under some near-term pressure because of concerns about chip demand and pricing, he wrote in a note to investors.

Luke said he aims to monitor the company's polysilicon supply and demand balance and said the company may secure an additional long-term contract in the second quarter.

Citigroup analyst Timothy M. Arcuri maintained his "Hold" rating on the shares and said it was difficult to see the supply/demand environment getting much better. "The window of opportunity for big blowouts is probably only another few quarters at best," he said.