Micron Reports Losses For Second Quarter
Memory chipmaker Micron Technology on Thursday posted a quarterly net loss but its revenue was higher than expected as it sold more DRAM chips.
For the second quarter, Micron Technology, Inc had a net loss attributable to Micron shareholders of $286 million, on net sales of $2.1 billion. The results for the second quarter of fiscal 2013 compare to a net loss of $275 million, or $0.27 per diluted share, on net sales of $1.8 billion for the first quarter of fiscal 2013, and a net loss of $282 million, or $0.29 per diluted share, on net sales of $2.0 billion for the second quarter of fiscal 2012.
Results of operations for the second quarter of fiscal 2013 include losses of $120 million from changes in the market value of the company's currency hedges entered into in connection with its planned acquisition of Elpida Memory and Rexchip Electronics. The results also include a loss of $62 million associated with the expected sale of the company's 200 millimeter wafer fabrication facility in Avezzano, Italy, in the first half of calendar 2013.
The company's consolidated gross margin improved to 18 percent in the second quarter of fiscal 2013 compared to 12 percent in the first quarter of fiscal 2013. Gross margin improvements were realized from sales of NAND Flash products and from sales of DRAM products due to decreases in manufacturing costs.
"We were pleased with the overall improvement in our operational performance and excited to see the effects of our restructured partnership with Inotera drive bit shipment growth during the quarter. We believe the resultant increase in capacity from existing industry production will provide us the scale we need to reinforce our leadership position," said Micron CEO Mark Durcan.
Revenues from sales of DRAM products in the second quarter of fiscal 2013 were 24 percent higher compared to the first quarter of fiscal 2013, due to a 38 percent increase in sales volume partially offset by a 10 percent decrease in average selling prices. Revenues from sales of NAND Flash products were 8 percent higher in the second quarter of fiscal 2013 compared to the first quarter of fiscal 2013, primarily due to a 13 percent increase in Trade NAND Flash sales volume. Sales of NOR Flash products were 14 percent lower in the second quarter of fiscal 2013, compared to the first quarter of fiscal 2013, due to decreases in sales volumes and average selling prices.
Results of operations for the second quarter of fiscal 2013 include losses of $120 million from changes in the market value of the company's currency hedges entered into in connection with its planned acquisition of Elpida Memory and Rexchip Electronics. The results also include a loss of $62 million associated with the expected sale of the company's 200 millimeter wafer fabrication facility in Avezzano, Italy, in the first half of calendar 2013.
The company's consolidated gross margin improved to 18 percent in the second quarter of fiscal 2013 compared to 12 percent in the first quarter of fiscal 2013. Gross margin improvements were realized from sales of NAND Flash products and from sales of DRAM products due to decreases in manufacturing costs.
"We were pleased with the overall improvement in our operational performance and excited to see the effects of our restructured partnership with Inotera drive bit shipment growth during the quarter. We believe the resultant increase in capacity from existing industry production will provide us the scale we need to reinforce our leadership position," said Micron CEO Mark Durcan.
Revenues from sales of DRAM products in the second quarter of fiscal 2013 were 24 percent higher compared to the first quarter of fiscal 2013, due to a 38 percent increase in sales volume partially offset by a 10 percent decrease in average selling prices. Revenues from sales of NAND Flash products were 8 percent higher in the second quarter of fiscal 2013 compared to the first quarter of fiscal 2013, primarily due to a 13 percent increase in Trade NAND Flash sales volume. Sales of NOR Flash products were 14 percent lower in the second quarter of fiscal 2013, compared to the first quarter of fiscal 2013, due to decreases in sales volumes and average selling prices.
