Looks like MU came in at -.41 if you take out the one-time gain. And margins down to 5%. FWIW.
MICRON TECHNOLOGY, INC., REPORTS RESULTS FOR THE SECOND QUARTER OF FISCAL 1998
Consolidated Financial Summary
Boise, Idaho, March 16, 1998 -- Micron Technology, Inc., today
reported a net loss for the second quarter of fiscal 1998, ended
February 26, of $48 million, or $0.23 per share-diluted, on net
sales of $755 million. Operating losses incurred in the Company's semiconductor memory and PC systems operations were partially offset in the second quarter of fiscal 1998 by an $0.18 per share-diluted (after tax and minority interests) gain on the sale of 90% of the Company's contract manufacturing subsidiary. For the first quarter of fiscal 1998, net sales were $955 million and net income was $10 million, or $0.04 per share-diluted. As of February 26, 1998, the Company had cash and liquid investments of $935 million.
In the second quarter of fiscal 1998, the Company's semiconductor memory operations lost $0.26 per share-diluted, on net sales of $283 million. Semiconductor memory sales for the second quarter declined from $440 million in the first quarter of fiscal 1998, primarily due to lower pricing for semiconductor memory products and fewer megabits sold. Test capacity constraints, previously limiting overall productivity gains, were substantially resolved in the last few weeks of the second quarter, allowing megabits of production to increase 10% as compared to the first quarter of fiscal 1998. Gross margins on semiconductor memory products averaged approximately 5% in the second
quarter, as compared to 32% in the first quarter of 1998.
The Company's semiconductor memory operations have been severely impacted by pricing pressure from Asian competitors who were recently found by the U.S. Department of Commerce to be dumping product below their cost of production. Steve Appleton, the Company's Chairman, CEO and President stated, "We are hopeful that the U.S. Department of Commerce will continue to monitor these ongoing trade violations
and that Congress will view carefully the impact upon U.S. businesses of any further International Monetary Fund support of
these practices."
In the second quarter of fiscal 1998, PC systems operations
incurred a pre-tax operating loss in excess of $100 million,
principally as a result of write-downs of inventories and the effect
of significant price declines for notebook products, a 10% decline
in unit sales from the prior quarter, and actions taken to reposition
PC operations to more efficiently and cost-effectively serve core
markets. "Other operating expenses" in the second quarter include employee severance costs and costs to consolidate domestic and international PC operations.
During recent months, the Company's approximate 64% owned subsidiary, Micron Electronics, successfully recruited five experienced executives from the PC industry including new President and Chief Operating Officer Joel Kocher, a former top executive at Dell Computer. "While Micron Electronics' products have long been recognized for their excellent price/performance characteristics, we have taken decisive actions this quarter to competitively position our organization with an infrastructure that will allow us to serve our core customers in a more efficient, cost-effective way," said Kocher.
The Company sold 90% of its contract manufacturing services subsidiary on February 26, 1998. Net sales for such operations, exclusive of the Company's memory content included therein, were $63 million in the second quarter of fiscal 1998.
Micron Technology, Inc., and its subsidiaries manufacture and market DRAMs, very fast SRAMs, Flash, other semiconductor components, memory modules, personal computer systems, and remote intelligent communications (RIC) products. Micron's common stock is traded on the New York Stock Exchange (NYSE) under the symbol MU.
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