SAN FRANCISCO—U.S. based memory chip maker Micron Technology Inc. Thursday (March 22) reported its third straight quarterly loss as increased sales volumes were offset by declines in average selling prices (ASPs).
Micron (Boise, Idaho) reported sales of $2.07 billion in the quarter ended March 1, down 1 percent from the previous quarter and down 9 percent from the year-ago quarter. The company reported a net loss of $224 million for the quarter, wider than the loss of $187 million reported in the previous quarter. Micron reported a net income of $72 million in the year-ago quarter.
Micron's sales for the quarter exceeded consensus analysts' expectations, which had pegged sales at about $2.02 billion, according to Yahoo Finance.
Micron said revenue from NAND flash and DRAM sales grew slightly in the quarter compared to the previous quarter. The company said sales volumes of these memory chip products grew by about 20 percent, but that the increase in volume was offset by decreases in ASPs. Sales of NOR flash memory accounted for about 11 percent of its net sales for the quarter, Micron said.
"The second quarter was obviously a weaker environment for pricing than we would have liked," said D. Mark Durcan, Micron's CEO, in a conference call with analysts following the quarterly report.
"Recently, we're seeing improvements in the DRAM market," Durcan said. "And while we don't predict what's going to happen going forward, depending on application, I think concerns over supply seem to be having a positive or at least stabilizing effect on OEM pricing."
Micron executives declined to comment on reports that Micron is negotiating with Elpida Memories Inc. about a possible investment in or acquisition of the bankrupt Japanese DRAM vendor.
The only thing that matters in the memory business is how you do relative to your competitors. Do you make more money than your competitors during the good times, do you lose less money during the bad times. Samsung and Hynix perform better than Micron consistently over the business cycle. It has been this way for the last ten years. Micron has survived because they have scavenged the carcasses of dead memory companies. I don't see how they can survive long term in direct competition Samsung, unless they can find a miracle investor with unlimited funds like GlobalFoundries did.
Not sure u guys ever read the actual MU 3rd quarter financial report before commented. Except Samsung, I doubt Hynix, aka sk-hynix is financially stable than MU. In fact, we should look at Hynix debt level as MU has one of the lowest asset/debt ratio compare to rest of memory vendors. Additionally, cash flow generation is far more important in company financial health than financial loss due to accounting purpose. Don't forget recent MU/Intel agreement in NAND capacity allocation could play a part in recent financial report ..just my 2cents.
the real danger for MU is it's dram tech-gap, ~ 1 year behind rest. ie. it's losing money no matter how it struggles.
it's dram vp seems not apt for the position,
stanford BS sounds bit of weak for such task,
boise generally host some tier2 folks,
MU could survive the last couple of cycles purely thanks to the blessing of intel for sharing their NAND tech.
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.