Micron Technology Inc. roared past analysts’ consensus estimate in its
recent quarter with revenue and profit rising sharply on surging demand,
a boost from its Numonyx acquisition and stronger than expected
increase in average selling prices for memory products.
The company’s fiscal third quarter net income strengthened to $939
million, or 92 cents per share, compared with $365 million, or 39 cents
per share, in the preceding quarter and a net loss of $301 million, or
37 cents per share, in the year-ago quarter.
Sales in the quarter ended June 3, 2010 rose to $2.3 billion from $2
billion in the fiscal second quarter and more than double the $1.1
billion reported in the year-ago comparable quarter. Analysts were on
the average expecting the company to post sales of $2.1 billion for the
recently concluded quarter.
Micron is benefitting from improving conditions in the memory market and
recent investment moves by the company, including the acquisition of
Numonyx has helped strengthened its position while mopping up excess
supplies from the supply chain. The fiscal third quarter results
included a net gain of $488 million from the Numonyx transaction, the
company said in a statement.
“In the company’s memory segment, revenue from sales of DRAM products
increased 10 percent in the third quarter of fiscal 2010 compared to the
second quarter of fiscal 2010 due to a 9 percent increase in average
selling prices and a slight in unit sales volume,” Micron said.
“Revenue from sales of NAND flash products was approximately 16 percent
higher in the third quarter compared to the second quarter due to a 21
percent increase in unit sales volume,” it added.
Micron said it appears what it paid for Numonyx was below the “fair
value” of the acquired assets, hence the “$468 million in purchase
accounting gains” related to the transaction. The company closed the
Numonyx acquisition during the just ended quarter and closed the period
with more than $2.3 billion in cash or $443 million below the amount
reported in the fiscal second quarter.