Micron confirmed on Thursday a court in China has granted a preliminary junction that bans its Chinese subsidiaries from manufacturing and selling some of its products in the Asian country.

The company said the affected products represent “slightly more than 1 percent” of the company’s annual sales. Micron added the injunction will hurt its current fiscal fourth quarter revenue by “approximately” 1 percent, but continues to expect sales to be within the previously guided range of $8 billion to $8.4 billion.

“Micron is disappointed with the ruling by the Fuzhou Intermediate People’s Court. We strongly believe that the patents are invalid and that Micron’s products do not infringe the patents. The Fuzhou Court issued this preliminary ruling before allowing Micron an opportunity to present its defense,” Micron’s Joel Poppen, senior vice president, legal affairs, general counsel said in a release. “This ruling and other actions by the Fuzhou Court are inconsistent with providing a fair hearing through appropriate legal processes and procedures. Micron has a long-standing history of successful business operations in China, including a significant assembly and test manufacturing facility in Xi’an, as well as deep relationships with many valued China customers. Micron will continue to aggressively defend against these unfounded patent infringement claims while continuing to work closely with its customers and partners.”

The company’s shares are up 3.5 percent in Thursday’s premarket session.

This story is developing. Please check back for updates.

Source: Tech CNBC
Micron confirms China blocking some chip sales, but says injunction will have minor impact on revenue