BOISE, Idaho -- Micron Technology Inc. today (March 29) reported a net loss of $88.3 million on net sales of $1.07 billion in the company's fiscal second quarter, ended March 1. The loss includes the effects of Micron Electronics Inc. pulling out of the PC business and plunging DRAM prices, said the Boise company.
While the company posted a net loss, Micron said its semiconductor operation was slightly profitable in the fiscal second quarter, based on pretax results. Micron also managed to beat Wall Street's earnings consensus, based on estimates that were recently lowered by financial analysts.
Micron reported that its semiconductor sales sequentially dropped 33% to $1.05 billion in the fiscal quarter from $1.56 billion in the prior three-month period because of a 50% drop in average selling prices of memory chips. The company said it offset the price decline by shipping about 33% more megabits of memory in the quarter, ended March 1.
Gross margin on Micron's semiconductor products decreased to 18% in the fiscal second quarter from 49% in the prior quarter as a result of the falling memory prices.
Micron said its loss from continuing operations, net of taxes, was $4 million, or -$0.01 per diluted share, in the quarter, ended March 1. In comparison, Micron said its income from continuing operations, net of taxes, for the prior quarter was $359 million, or $0.59 per diluted share, on net sales of $1.57 billion.
Micron's net loss of -$0.15 per share included the effects from Micron Electronics, discontinued PC operations (-$0.14 per share), and net losses from Micron Electronics' Web hosting operation. Last week, Micron Electronics announced it was pulling out of the PC business to convert itself into a pure-play Web-hosting company (see March 23 story).
A year ago, Micron Technology reported a net income of $161.3 million on net sales of $1.16 billion.