Micron Technology Reports 1Q Results
Mon. January 05, 2009; Posted: 11:25 PM
In a release, the company stated:
- For the first quarter of fiscal 2009, the company posted a net loss of $706 million, or $0.91 per diluted share, on net sales of $1.4 billion.
- The company noted that results reflect a non-cash charge to cost of goods sold of $369 million to write down the value of work in process and finished goods inventories of memory products to their estimated market values and a benefit of $157 million from first quarter sales of products that were subject to previous write-downs. In the first quarter of fiscal 2009, the company generated $359 million in cash flow from operating activities and ended the quarter with cash and investments of $1.0 billion.
- Sales of the company's memory products in the first quarter of fiscal 2009 decreased 4 percent compared to the preceding quarter as a result of decreases in market selling prices for the company's products, partially offset by a higher sales volume. The company's sales measured in gigabits increased 35 percent and 40 percent for DRAM and NAND Flash products, respectively. The sales volume, which outpaced production during the first quarter, resulted in a 15 percent decrease in gigabits of the company's finished goods inventories during the quarter. Average selling prices for the company's memory products decreased 34 percent and 24 percent for DRAM and NAND Flash products, respectively.
- The company's reported gross margin decreased in the first quarter compared to the preceding quarter as decreases in per gigabit average selling prices for memory products outpaced decreases in cost. Comparing the first quarter to the fourth quarter of fiscal 2008, absent the effects of the first quarter and prior period inventory write-downs, per gigabit costs decreased 12 percent and 14 percent for DRAM and NAND Flash products, respectively.
- The company's cost-cutting and restructuring activities have yielded reductions in operating costs in nearly all areas and contributed to the company's cash flow from operating activities in the first quarter.
- Sales of CMOS image sensors in the first quarter of fiscal 2009 were relatively stable compared to the preceding quarter. The company's gross margin on sales of Imaging products also remained stable compared to the fourth quarter, reflecting a slight decrease in costs per part.
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