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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Donald Wennerstrom who wrote (22525)	3/29/2005 7:02:27 PM
From: Donald Wennerstrom	Respond to of 95761

DJ Micron CFO: Average Selling Prices Decline 15% In 2Q 29 Mar 18:16 By Donna Fuscaldo Of DOW JONES NEWSWIRES <<CHARLOTTE (Dow Jones)--Micron Technology Inc. (MU) Chief Financial Officer Bill Stover said Tuesday that average selling prices for memory chips in the company's fiscal second quarter fell about 15% from the fiscal first quarter. Still, while prices declined, Stover said sales increased, which likely means the company is recapturing market share. "Even with ASP erosion of about 15%, Micron realized 28% gross margins for the quarter," said Stover during a conference call to discuss second-quarter results with Wall Street. Michael Sadler, Micron's vice president of world-wide sales, said the price declines reflect seasonally slow demand during its second quarter. According to Sadler, Micron saw typical seasonal patterns from the computing market during the quarter. He noted that in the first three weeks of its third quarter, average selling prices have continued to decline. According to Sadler, demand for Micron's memory chips came from more memory content per PC as opposed to increased shipments of computers. Sadler noted that the computing market will drive megabit demand growth of 40% to 50% this year. As for megabit production in the third quarter, Sadler said Micron is targeting production growth in the mid single digits for the fiscal third quarter ending in May. For its second quarter ended March 3, the Boise, Idaho memory chip maker reported net income of $117.9 million, or 17 cents a share, compared with a year-earlier loss of $28.3 million, or 4 cents a share. Revenue rose 32% to $1.31 billion from $991 million a year ago. Analysts had expected Micron to report earnings of 15 cents a share and revenue of$1.22 billion. In after-hours trading, Micron's stock rose to $10.34, according to INET. The shares closed the regular trading session at $10.12, down 5 cents.