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Micron Technology Swings to Profit in Q4

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Memory chip maker, Micron Technology Inc. (NASDAQ: MU) reported after the market close on Thursday that it swung to a profit in fiscal fourth quarter, aided by improved sales and higher gross margin along with a big onetime accounting gain linked to the acquisition of Japanese company, Elpida Memory Inc. The company has now reported two straight quarterly profits after posting seven successive quarterly losses.

For the latest period, the Boise Idaho based company posted a net income of $1.71 billion or $1.51 a share compared to a loss of $243 million or 24 cents a share, in the same period of last year.

The latest results include an accounting gain of $1.484 billion or $1.31 a share linked to the acquisition along with proceeds from Elpida’s August sales and a charge of $32 million attributable to restructuring and an asset impairment cost. The Company acquired Elpida in July.

Analysts polled by Thomson Reuters had expected earnings of 24 cents a share. Analysts estimate typically exclude onetime items.

Gross margin for the quarter widened to 25.0% from 11.2% in the year ago quarter.

Net sales for the period climbed 45% to $2.84 billion from $1.96 billion, in the year-ago period.

Revenue jumped 50% at its DRAM unit as sales volume increased 42% while average selling prices rose 5%.

Revenue from NAND flash memory products increased 5% as sales volume rose 17%, offsetting 11% drop in average selling price.

 








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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