Here is another input on the MU results.
<<Micron Beats Targets
By Chris Kraeuter
TheStreet.com Staff Reporter
3/29/2005 5:38 PM EST
Micron Technology (MU:NYSE - commentary - research) beat Wall Street's financial targets for its fiscal second quarter, as it shipped more memory chips than expected.
The Boise, Idaho-based company reported net income of $118 million, or 17 cents a share, on sales of $1.3 billion. During the same quarter last year, Micron lost $28 million, or 4 cents a share, on sales of $991 million.
Analysts had predicted earnings of 15 cents a share and sales of $1.22 billion, on average, according to Thomson First Call.
Micron's sales volume rose 23%, based on megabits, from the first quarter and average selling prices declined 15%. Production rose 28% due to manufacturing efficiencies.
At the quarter's start, Micron predicted selling prices would decline between 10% and 15% with megabit production and shipment growth of 15% to 20%, sequentially.
The weak selling prices hurt Micron's gross margins, however, dragging them down to 27% from 33.6% in the first quarter, against 25% in the same quarter last year. And the production increase further inflated Micron's inventory, pushing it up 6.7% to $752.7 million. From the first to the fourth quarter, Micron's inventory rose 22%.
Even so, Micron shares rose 31 cents in postclose action to $10.43.>> |
