Micron misses estimates, triples capex
Mark LaPedus
(10/05/2006 5:54 PM EDT)
SAN JOSE, Calif. — Micron Technology Inc. missed Wall Street's forecast in the quarter despite strong demand for its memory products.
Micron (Boise, Ida.) also plans to more than triple its capital spending in fiscal 2007. It plans to spend some $4 billion in the period, with a big ramp expected within its 300-mm fab in Utah.
The company invested approximately $1.6 billion in capital expenditures in fiscal 2006. These investments were heavily concentrated in 300-mm tooling within its fabs in three locations: Manassas, Virginia; Lehi, Utah; and Singapore.
Micron reported sales of $1.37 billion for its fourth fiscal quarter, compared to $1.31 billion in the previous quarter and $1.26 billion a year ago.
The chip maker posted a profit of $63.5 million, or $0.08 a share, for the quarter, compared to a net of $88.5 million, or $0.12 a share, in the previous quarter and a net of $43.1 million, or $0.07 a share, a year ago.
Wall Street was looking for $0.14 per share on sales of $1.41 billion for the quarter. For the fiscal year, the company earned net income of $408 million, or $0.57 per diluted share, on net sales of $5.3 billion, which compares to net income of $188 million, or $0.29 per diluted share, on net sales of $4.9 billion for the prior fiscal year.
"Micron effectively executed its diversification strategy, resulting in strong financial performance for the year while strengthening its platform for future success," said Steve Appleton, Micron's chairman, CEO and president, in a statement.
Sales of DDR and DDR2 memory products increased slightly in the fourth quarter of fiscal 2006, compared to the third quarter, representing approximately 50 percent of the company's total net sales.
Sales of CMOS image sensor products represented approximately 15 percent of the company's revenue in the quarter. Sales of NAND flash products increased in the quarter and represented approximately 9 percent of the company's total net sales for the fourth quarter.
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