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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: Lucretius who wrote (44271)	3/24/1999 11:27:00 PM
From: Steve Fancy	Respond to of 53903

(UPDATE) Chip Maker Micron Technology Posts Better-Than-Expected Results Dow Jones Online News, Wednesday, March 24, 1999 at 21:41 NEW YORK -(Dow Jones)- Micron Technology Inc., the last major manufacturer of memory chips based in the U.S., late Wednesday posted fiscal second-quarter earnings far above analysts' expectations, citing strong sales and a higher profit margin resulting from increased production. Boise, Idaho-based Micron (MU) said net income for the second quarter ended March 4 came to $22.4 million, or eight cents a share on a fully diluted basis, compared with a net loss of $50.9 million, or 24 cents a diluted share, in the year-earlier period. Revenue increased 34% to $1.02 billion. However the latest results included a writedown of $15 million, or three cents a diluted share, for flat panel display assets, and a $4 million charge for consolidation of PC operations in Japan. The company didn't say what its results would have been without the charges. But the mean estimate of analysts surveyed by First Call was for break-even results, excluding charges. Micron's memory chip sales during the second quarter were $697.1 million, compared with $283.4 million in the year-ago quarter. Second-quarter gross profit margin on semiconductor operations was 32%, compared with 9% during the first quarter. The company attributed the increase to stable pricing and cost reductions achieved on higher production volumes. Personal computer systems sales fell to $309.5 million in the latest quarter from $396.5 million a year ago. Unit sales of PC systems in the second quarter fell 14% from first-quarter levels, while prices rose 4%, due to a shift in product mix. The company said all PC systems experienced considerable pricing pressure during the second quarter. The results put to rest a four-quarter string of losses brought on by a worldwide glut of memory chips. "They're a very efficient producer, and this time they actually hit a home run," said David Wu, an analyst with ABN Amro in Chicago. Many companies abandoned the memory-chip market after a build-up of capacity led to falling prices over the past two years. Now the pendulum is swinging to undersupply from oversupply, said Wu, and Micron is one of only five substantial players left standing. While memory-chip pricing is still unpredictable, "my guess is prices will firm by the fourth quarter of this year," Wu said. "We think DRAMs will be moving into a shortage situation in year 2000," Wu said. It's hard "not to make money when there's a shortage if you are an efficient producer." Copyright (c) 1999 Dow Jones & Company, Inc. All Rights Reserved.