Micron posts third straight quarterly loss
3/22/2012 5:04 PM EDT
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.