Saturday, November 01, 2014
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Pirate Bay Co-founder Sentenced To 42 Months Imprisonment
SEL Showcases 1058ppi And Foldable OLED Displays
New Outlook for Mac Available Now, Office for Mac Coming In 2015
Updated BBM Offers More Privacy, Control and More
Panasonic Raises Profit Outlook
Toshiba Offers New 4TB and 5TB Desktop HDDs
Samsung Introduces New Ultra Slim Galaxy A5 and Galaxy A3 Smartphones For The Chinese Market
Sharp 2Q Profit Slides
Active Discussions
DVD/DL for Optiarc 7191S at 8X
Copied dvd's say blank in computer only
Made video, won't play back easily
New Features In Firefox 33
updated tests for dvd and cd burners
How to generate lots of different CDs quickly
Yamaha CRW-F1UX
help questions structure DVDR
 Home > News > General Computing > Micron ...
Last 7 Days News : SU MO TU WE TH FR SA All News

Monday, December 23, 2013
Micron Q3 Revenue Soars After Elpida Deal Officially Closes


Micron Technology surged 130 percent in revenue during the third quarter as it finally closed its acquisition of bankrupt Elpida Memory of Japan, an ascent that also propelled the total market for dynamic random access memory (DRAM) to its best performance yet in 11 quarters, according to a new DRAM Dynamics brief from IHS Inc.

Micron ended the third quarter with sales of $2.63 billion, up a sizzling 131.3 percent from $1.14 billion in the earlier quarter, to give the Idaho-based maker 27.4 percent market share. Micron remains at No. 3 overall behind top-ranked Samsung, but Micron is now within striking distance of second-ranked SK Hynix.

Samsung still has a commanding lead with 36.8 percent market share of DRAM, but SK Hynix, with 27.8 percent share, is now just four-tenths of a percentage point ahead of Micron.

Micron's market share had been hovering in the 10 to 15 percent range for the last several years, but the addition of Elpida's revenue to its column has made a significant difference. The closing of the Elpida acquisition, more than a year in the making and a formidable rival of Micron in the past, will now more than double Micron's DRAM manufacturing capability. This means Micron will now claim 25 to 30 percent market share from this point forward.

Micron's market share in the third quarter received an additional bump because of the company's high exposure to the PC DRAM space, which has seen prices appreciate considerably since November 2012. Nearly 35 percent of Micron's revenue came from sales of PC DRAM, IHS estimates.

Overall the global DRAM market continued its blistering pace of expansion in the third quarter, with revenue up 10 percent sequentially to reach $9.59 billion. Not since the third quarter of 2010 has industry revenue climbed so high when the market's takings then hit $10.68 billion. Industry revenues had hovered at the $6 billion to $7 billion range for seven quarters beginning in the third quarter of 2010 and then breached the $8 billion mark in the second quarter, before making another substantial push this time to end up in rarefied territory.

Growth for the latest period was driven by an increase in shipments and average selling prices (ASP). Shipments are up 5 percent, while ASPs have jumped nearly 7 percent to reach $1.00 per gigabyte.

The DRAM industry is currently on a tear, helped by industry consolidation - including the Micron acquisition of Elpida - that has now left just three major producers, resulting in greater stability and higher prices because of controlled production, benefiting the remaining players.

SK Hynix suffered a setback after a fire broke out at its Wuxi, China, plant, notably impacting the company?s DRAM shipments in the third quarter. After growing nearly 40 percent in the second quarter, SK Hynix saw only a 4 percent uptick in revenue in the most recent period because of the fire. The impact of the disaster will be felt through the end of 2013, IHS predicts, but the company should be back to near normal by the end of the year.

Meanwhile, Samsung?already the undisputed leader of DRAM?took advantage of the SK Hynix calamity to grow its own shipments by nearly 15 percent on the quarter, along with a 7 percent hike in ASP. Such results could put Samsung on track to reap record earnings in the fourth quarter - Samsung's peak quarterly revenue was $4.35 billion in the third quarter of 2010.

For the fourth quarter, total DRAM shipments and prices are forecast to keep climbing. While signs suggest that prices have now reached their current peak with the spot market starting to soften, long-term prospects continue to look positive. And companies that outgrow the market average, such as Micron and Samsung, could well see revenues continue to go up.




Previous
Next
Denon Introduces The DHT-S514 Home Theater Sound Bar        All News        Samsung Galaxy Note 3 and Galaxy Gear Give Winter Sports Fans Hands-Free Mobile Communications
RSA Denies Claims Regarding "Secret Contract" With NSA     General Computing News      Oracle Buys Responsys For $1.5 billion

Get RSS feed Easy Print E-Mail this Message

Related News
Micron, Wave Systems, Lenovo and American Megatrends To Create New Standard to Tackle Pre-boot Threats Within the Supply Chain
Micron Urges Investors To Reject TRC Capital's Unsolicited Tender Offer
Micron Launches SDK For Its Automata Processor
Micron M600 SSD Released With Dynamic SLC Cache
Tessera and Micron Execute New Technology and Patent License Agreements
Micron Announces Monolithic 8Gb DDR3 SDRAM
Micron, SK Hynix May Invest In Taiwan SSD Controller Companies
Micron to Discuss Emerging Memories at 2014 Symposia on VLSI Technology and Circuits
Crucial Starts Sampling DDR4 Server Memory
Micron Releases New Solid State Drive For Data Centers
Micron, MediaTek Consider Investments In Kingston Solutions
Micron and Wave Systems Collaborate to Secure Connected Devices

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2014 - All rights reserved -
Privacy policy - Contact Us .