SAN FRANCISCOŚMemory 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.