Micron Electronics wrote down notebook inventories...see below..$100MM pre tax...they did not break out the non recurring items..they sold a business to get positive 26 cents
Monday March 16, 8:35 pm Eastern Time
Micron posts second-quarter loss, cites pricing pressures
BOISE, Idaho, March 16 (Reuters) - Micron Technology Inc. (MU - news) Monday reported a second-quarter loss of $48.1
million and said results were hurt by pricing pressures and a steep decline in sales.
The loss, which equals 23 cents per share on a diluted basis, compared with a profit of $142.7 million or 67 cents per share in
the year-ago second quarter, and exceeded most forecasts. Industry analysts had been expecting a loss of around 17 cents per
share, according to estimates compiled by First Call.
The company said in a statement that its semiconductor memory operations have been ''severely impacted by pricing pressure
from Asian competitors who were recently found by the U.S. Department of Commerce to be dumping product below their
cost of production.'' Micron Chairman Steve Appleton said he was hopeful the U.S. Department of Commerce would look into
those practices.
Micron's sales in the second quarter fell to $755.4 million from $876.2 million. Total sales include personal computer systems
sales of $396.5 million, up slightly from $395.4 million in the year-ago quarter, and semiconductor memory products sales of
$283.4 million, down sharply from $401.5 million in the year-ago quarter.
The second-quarter loss included an after-tax gain of 18 cents per share from the sale of the majority of Micron's contract
manufacturing subsidiary.
The loss also included a pretax operating loss in excess of $100 million at the PC systems operations division. That division
wrote down inventories and price declines for notebook products during the second quarter, and also experienced a 10
percent decline in unit sales compared with the year-ago quarter.
Micron Electronics (MUEI - news), the 64 percent-owned subsidiary of Micron Technology, Tuesday reported
second-quarter earnings fell to $24.8 million or 26 cents per share on a diluted basis, from $27.8 million or 30 cents per share. |
