SAN FRANCISCO—Memory chip vendor Micron Technology Inc. said it swung to a net loss in the quarter ended Sept. 1 largely because of declining average selling prices (ASPs) for DRAM chips.
Micron (Boise, Idaho) reported sales of $2.1 billion for its fiscal fourth quarter, ended Sept. 1. Sales for the quarter were roughly flat compared to the previous quarter but down 14 percent compared to the year-ago quarter.
Micron's sales for the quarter were roughly in line with consensus analysts' estimates, according to Yahoo Finance.
Micron posted a net loss for the fiscal fourth quarter of $135 million, or 14 cents per diluted share, compared to net incomes of $75 million and $342 million in the previous and year-ago quarters, respectively.
For its fiscal 2011, also closed Sept. 1, Micron reported sales of $8.8 billion, up 4 percent compared to fiscal 2010. The company reported a net income for the year of $167 million, or 17 cents per diluted share, down from a net income of nearly $1.9 billion in fiscal 2010.
Micron said it experienced significant declines in DRAM ASPs. The company said its consolidated gross margin declined to 15 percent in the fiscal fourth quarter from 22 percent in the previous quarter.
Revenue from sales of NAND flash products was 11 percent higher in the fiscal fourth quarter compared to the previous quarter due to a 40 percent increase in sales volume, which was partially offset by a decrease in ASPs. Revenue from sales of DRAM products was 12 percent lower in the fourth quarter of fiscal 2011 compared to the third quarter of fiscal 2011 due to the declines in ASPs partially offset by an increase in sales volume, Micron said. Sales of NOR flash products were approximately 17 percent of total net sales for the fiscal fourth quarter, Micron said.
Cash flows from operations for the fiscal fourth quarter were $354 million, Micron said. The company said it invested $928 million in capital expenditures in the fiscal fourth quarter. For all of fiscal 2011, Micron invested about $2.9 billion in capital expenditures, it said.
Micron noted that the trial phase of an antitrust case brought by Rambus Inc. was heard in San Francisco Superior Court and ended on Sept. 21. The jury is currently deliberating the verdict, Micron said.
@josh, 'He received a bachelor of business administration degree from Boise State University in 1982 and an 'honorary' doctorate from Boise State University in 2007.'
this is not impressive at all anyway, is it?
about inotera scandal, you are avoiding the fact that the original micron delegate to tw failed and replaced after xx months. so human error is inexcusable.
@ibm221: don't believe the hype. Appleton "worked" as an operator as a training / hazing / pr stunt. He was in line for an executive job all along.
@rolling: I know for a fact that Inotera was the most profitable fab for Qimonda by a wide margin. Not sure how they could accomplish that with "the worst engineers in TW". Transition of trench fab to stack fab is hard. The equipment mix is all wrong, and the tricks are all different. Transition from trench to stack killed TI DRAM division. Micron had trouble initially with Mannassas fab also, finally turned it into a Flash fab.
@rolling, that sounds like a very large team. I agree that you need the expertise to right a fab, but it should be doable with a much smaller team. They would have to be very experienced and able to train a good workforce. They would not all have to be fluent in the native language, but it would sure help.
I agree that Micron successfully took over fabs in Japan, Singapore and Italy. Obviously cultural problems were solved. That said, one would need ~200-300 qualified engineers/managers to "fix" Inotera. You need that many to have critical mass and implement the changes necessary to right the ship. Micron simply does not have those resources and yes, they need to speak Chinese. Transplants from ID, UT or VA won't do.
One thing interesting about micron is it's CEO who started as a operator and couple of operator VPs.
Yeah right, they are motivated and hardworking, but why won't intel or amd promote one of it's PO to be the CEO?
I guess there is a price to pay here...
David Patterson, known for his pioneering research that led to RAID, clusters and more, is part of a team at UC Berkeley that recently made its RISC-V processor architecture an open source hardware offering. We talk with Patterson and one of his colleagues behind the effort about the opportunities they see, what new kinds of designs they hope to enable and what it means for today’s commercial processor giants such as Intel, ARM and Imagination Technologies.