UPDATE 1-Smart Modular Q2 results lag Street; forecasts weak Q3

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March 20 (Reuters) - Chipmaker Smart Modular Technologies Inc (SMOD.O: Quote, Profile, Research) posted lower second-quarter results that also missed market estimates as a customer delayed shipments of a product and average selling prices were low.

Smart Modular, whose customers include Hewlett-Packard Co (HPQ.N: Quote, Profile, Research) and Advanced Micro Devices (AMD.N: Quote, Profile, Research), also forecast third-quarter results below market estimates.

In December last year, Advanced Micro Devices had delayed shipments of its high-end server chips, called Barcelona, until the first quarter of 2008.

Smart Modular posted net income of $10.9 million, or 17 cents a share, for the second quarter, compared with $14 million, or 22 cents a share, a year ago. Net sales fell 33 percent to $159.6 million.

Analysts expected earnings of 18 cents a share, before special items, on revenue of $179.9 million, according to Reuters Estimates.

For the third quarter, Smart Modular expects to earn about as much as it did in the second quarter. The company expects net sales of $160 million to $170 million.

Analysts were expecting earnings of 22 cents a share, before special items, on revenue of $192 million.

Shares of the Fremont, California-based company fell 4 percent to $4.90 in after-hours trade. They closed at $5.12 Thursday on Nasdaq. (Reporting by Purwa Naveen Raman in Bangalore; Editing by Pratish Narayanan)