Micron Tech net falls 60%
By Rex Crum, MarketWatch
Last Update: 5:43 PM ET Dec. 21, 2005
<<SAN FRANCISCO (MarketWatch) -- Micron Technology Inc. on Wednesday reported a 60% drop in its quarterly profit, but better sales of its chips for personal computers and digital-media devices boosted overall revenue.
Micron (MU:MU14.14, +0.43, +3.1%) said it earned $62.6 million, or 9 cents a share, in its fiscal first quarter, which ended Dec. 1. During the comparable period a year ago, the Boise, Idaho-based company earned $154.9 million, or 23 cents a share.
Revenue totaled $1.36 billion, up from $1.26 billion.
Analysts surveyed by Thomson First Call had forecast Micron to earn 11 cents a share, on $1.34 billion in revenue.
In after-hours trading, Micron shares fell 32 cents, or more than 2%, to $13.82 after rising 43 cents in the regular market session.
Micron said the company was able to use a broad product line to help blunt what was a 15% decline in the price of DRAM chips used for memory in personal computers.
In addition to DRAM, Micron specializes in NAND flash memory, a more profitable line of chips used in music players and other digital media devices. Micron said gross margins held steady at 23%, due to more sales of high-margin chips such as NAND flash memory.
In November, Micron and Intel Corp. (INTC:INTC25.88, +0.08, +0.3%) agreed to form IM Flash Technologies LLC to develop flash memory chip products. Micron will own 51% of the new venture, which is scheduled to be completed in January. Apple Computer Inc. (AAPL:
AAPL73.50, +1.39, +1.9%) has already prepaid Micron and Intel $250 million each to secure much of the venture's initial flash memory output.
Micron didn't immediately give a second-quarter forecast. Analysts are forecasting the company to earn 9 cents a share, on revenue of $1.3 billion.>> |
