SAN JOSE, Calif. -- Memory chip vendor Micron Technology Inc. recorded its first profit in three years during the period ended Dec. 3, topping Wall Street's expectations with sales of $1.74 billion, the company said Tuesday (Dec. 22).
Here's what analysts thought about the quarter:
Daniel Amir, an analyst at Lazard Capital Markets (LCM):
''Impressive quarter. Micron posted F1Q revenue of $1.74 billion and EPS of $0.23, verses LCM estimates of $1.559.5 billion and $0.05 and Street estimate of $1.586 billion/$0.06.
DRAM sales of (about) $1 billion increased 50 percent Q/Q off of 25 percent bit growth and a 21 percent ASP increase despite a mix shift away from specialty. DDR3 made up 40 percent of core DRAM bits.
NAND remains tight. NAND sales of $568 million increased 21 percent Q/Q, due to bit growth of 16 percent and a 5 percent ASP increase. For Feb., we expect a 10 percent ASP decline and 7 percent bit growth. The company expects a better than usual seasonal trend in NAND pricing due to fairly solid demand and low inventory levels.
For the Feb. quarter, we expect revenues and EPS of $1.709 billion/$0.16, verses $1.509 billion/$0.03 previously. Micron didn't update its capex expectations ($750-to-$850 million). We expect limited additional spending in capex on new capacity in 2010 due to the inability of the industry to raise capital and receive lithography equipment.''
Hans Mosesmann, an analyst with Raymond James Equity Research:
''Micron delivered a nice upside to its November quarter results. Demand during the call was characterized as broad-based, constrained by supply, and seasonally stronger than expected.
Customer order patterns exiting December paint a calendar 1Q10 DRAM picture of little to no slow-down likely as a result of low inventories (OEMs, channel, and hubs), stronger server and PC unit trends, stronger-than-expected 'content' per box, and a transition to DDR3 coincident with Intel's Westmere CPU launch in January.
We are at the early innings of a supply-driven DRAM cycle that is set to coincide with an enterprise drive O/S upgrade cycle not seen since the early 1990s. While we continue to view the NAND market (one-third of Micron's sales) as potentially problematic in 2010 with supply/demand roughly in 'balance,' the DRAM dynamic is quite compelling and an overriding factor for the shares.''