Micron posts loss as memory prices drop 50% in quarter
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(03/29/01 16:54 p.m. PST)
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BOISE, Idaho -- Micron Technology Inc. today (March 29) reported a net loss of $88.3 million on net sales of $1.07 billion in the company's fiscal second quarter, ended March 1. The loss includes the effects of Micron Electronics Inc. pulling out of the PC business and plunging DRAM prices, said the Boise company.
Micron Technology reported that its semiconductor sales sequentially dropped 33% to $1.05 billion in the fiscal quarter from $1.56 billion in the prior three-month period because of a 50% drop in average selling prices of memory chips. The company said it offset the price decline by shipping about 33% more megabits of memory in the quarter, ended March 1.
Gross margin on Micron's semiconductor products decreased to 18% in the fiscal second quarter from 49% in the prior quarter as a result of the falling memory prices.
Micron said its loss from continuing operations, net of taxes, was $4 million, or -$0.01 per diluted share, in the quarter, ended March 1. In comparison, Micron said its income from continuing operations, net of taxes, for the prior quarter was $359 million, or $0.59 per diluted share, on net sales of $1.57 billion.
Micron's net loss of -$0.15 per share included the effects from Micron Electronics, discontinued PC operations (-$0.14 per share), and net losses from Micron Electronics' Web hosting operation. Last week, Micron Electronics announced it was pulling out of the PC business to convert itself into a pure-play Web-hosting company (see March 23 story).
A year ago, Micron Technology reported a net income of $161.3 million on net sales of $1.16 billion.
siliconstrategies.com
Also
Micron Beats Wall Street Forecasts
BOISE, Idaho, Mar 29, 2001 (AP Online via COMTEX) -- Micron Technology Inc. suffered a second-quarter loss, mostly through the discontinuation of the personal-computer manufacturing by its majority-owned concern, the company announced Thursday.
But the Boise-based company's earnings were ahead of Wall Street estimates.
Micron lost $4.1 million, or 1 cent a share, for the second quarter that ended March 1. That compared with income of $168.8 million, or 30 cents a share, the same time a year ago.
Analysts surveyed by First Call/Thomson Financial had forecast a loss of 3 cents a share for the quarter.
Without the losses from discontinued computer manufacturing by Micron Electronics and its Web-hosting operations, the company's net income was $88.3 million, or 15 cents a share.
Sales for the quarter fell from $1.2 billion last year to $1.07 billion this year,
"The company is feeling the negative impact of weak PC demand and very low D-RAM pricing," said Eric Rothdeutsch of Robertson Stephens in San Francisco. "The price continues to be below their costs. It's a changing environment for D-RAM manufacturers."
Micron Technology owns 61 percent of Micron Electronics, which last Friday announced it would jettison its computer manufacturing and computer chip refurbishing components and merge with the Atlanta-based Interland Inc. Web hosting company.
In after-hours trading on the New York Stock Exchange Thursday, shares of Micron were up $1 to $45.25.
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Copyright 2001 Associated Press, All rights reserved
siliconinvestor.com
That was predictable...
I wonder why they have 26 millions market cap and their sales aren't higher than AMD's, not to talk about their profits...
Max |
