Micron forecasts Q2 Revenue
Micron Technology forecast current-quarter revenue and profit and posted its first rise in quarterly revenue in nearly two years.
Micron forecast adjusted profit of 58-68 cents per share for the current quarter. Micron also said it expected revenue of $4.35 billion-$4.70 billion.
"Positive market momentum, driven by favorable demand trends and limited industry supply, produced solid results for our first quarter," said Micron CEO Mark Durcan. "We continue to make significant progress on our key technology and product initiatives, and we are pleased to have closed the Inotera acquisition on December 6, 2016, which we expect to further improve Micron's strategic position and financial results."
Prices of dynamic random access memory (DRAM) chips used in personal computers have been recovering as the PC market improves amid tighter supplies. Average selling prices of DRAM chips rose 5 percent in the quarter, the company said.
Micron, which gets about 60 percent of its revenue from DRAM chips, said last month it expected slowing industry supply growth for the next few quarters, while overall demand stayed healthy.
The company's net income attributable to shareholders fell to $180 million, in the first quarter ended Dec. 1, from $206 million a year earlier. Revenue rose 18.5 percent to $3.97 billion.