Micron
Technology this afternoon reported weaker-than-expected
results for its fiscal fourth quarter ended August.
For the quarter, the memory chip maker posted revenue of $1.96 billion and a loss of 24 cents a share; Street consensus had been for $2.12 billion in revenue and a loss of 22 cents a share.
In the quarter, NAND Flash revenues were down 12% sequentially on an 11% drop in sales volume, a drop the company blamed on a one-time increase in volume in Q3 from the sale of work in process inventories resulting from the restructuring of the IM Flash joint venture with Intel. DRAM sales were down 9%, due to a 9% drop in sales volume.
Micron noted that NAND Flash revenues for all of FY 2012 were 14 percent higher than FY 2011, with a 106 percent increase in unit sales volume from the ramp of the company’s IM Flash Singapore wafer fabrication facility joint venture with Intel partially offset by a 45 percent decrease in average selling prices.DRAM revenues for the year were 12 percent lower on a 45 percent decrease in average selling prices, partially offset by a 59 percent increase in unit sales.
“In 2012, despite difficult market conditions and lower average selling prices, we continued to execute on our technology and manufacturing roadmaps and moved our products increasingly into premium segments,” CEO Mark Durcan said in a statement. “Our focus throughout 2013 is to drive additional cost reductions and advance our leading-edge memory technology to achieve increased manufacturing efficiencies.”
MU in late trading is up 2 cents to $6.03.
Update: In a brief call with FORBES this afternoon, Micron President Mark Adams said that the company’s NAND business was slightly better than expected in the quarter, while DRAM was slightly worse, due largely to underperformance of the PC sector. Adams says that based on industry capital spending and production plans, he thinks the “foundation for recovery is in place” on the supply side.” He notes that the specialty DRAM business was “pretty healthy” in the quarter, but that competition in the server business was “a little more competitive than we’re used to.”
On the NAND market, he says that pricing was better than expected, as some categories continues to “flourish,” including tablets, smartphones and SSDs. He notes that in the quarter – and so far in the current quarter – supply and demand have been in “pretty good balance.” He terms the NAND industry supply situation as “relatively tight.”
For the quarter, the memory chip maker posted revenue of $1.96 billion and a loss of 24 cents a share; Street consensus had been for $2.12 billion in revenue and a loss of 22 cents a share.
In the quarter, NAND Flash revenues were down 12% sequentially on an 11% drop in sales volume, a drop the company blamed on a one-time increase in volume in Q3 from the sale of work in process inventories resulting from the restructuring of the IM Flash joint venture with Intel. DRAM sales were down 9%, due to a 9% drop in sales volume.
Micron noted that NAND Flash revenues for all of FY 2012 were 14 percent higher than FY 2011, with a 106 percent increase in unit sales volume from the ramp of the company’s IM Flash Singapore wafer fabrication facility joint venture with Intel partially offset by a 45 percent decrease in average selling prices.DRAM revenues for the year were 12 percent lower on a 45 percent decrease in average selling prices, partially offset by a 59 percent increase in unit sales.
“In 2012, despite difficult market conditions and lower average selling prices, we continued to execute on our technology and manufacturing roadmaps and moved our products increasingly into premium segments,” CEO Mark Durcan said in a statement. “Our focus throughout 2013 is to drive additional cost reductions and advance our leading-edge memory technology to achieve increased manufacturing efficiencies.”
MU in late trading is up 2 cents to $6.03.
Update: In a brief call with FORBES this afternoon, Micron President Mark Adams said that the company’s NAND business was slightly better than expected in the quarter, while DRAM was slightly worse, due largely to underperformance of the PC sector. Adams says that based on industry capital spending and production plans, he thinks the “foundation for recovery is in place” on the supply side.” He notes that the specialty DRAM business was “pretty healthy” in the quarter, but that competition in the server business was “a little more competitive than we’re used to.”
On the NAND market, he says that pricing was better than expected, as some categories continues to “flourish,” including tablets, smartphones and SSDs. He notes that in the quarter – and so far in the current quarter – supply and demand have been in “pretty good balance.” He terms the NAND industry supply situation as “relatively tight.”
No comments:
Post a Comment