Micron Technology, Inc., (NYSE: MU) today announced results of
operations for the company’s first quarter of fiscal 2008, which ended November 29, 2007. For the first
quarter of fiscal 2008, the company incurred a net loss of $262 million, or $0.34 per diluted share, on net sales of $1.5 billion. These results compare to a net loss of $158 million, or $0.21 per diluted share, on net sales of $1.4 billion for the fourth quarter of fiscal 2007.
The company’s growth in revenue in the first quarter compared to the previous quarter was primarily driven by significant sales volume increases in memory products (for both DRAM and NAND Flash).
Sales of CMOS image sensors products in the first quarter of fiscal 2008 also increased approximately 15 percent compared to the previous quarter as a result of a higher level of unit sales. Megabit sales volume for DRAM and NAND Flash memory products increased approximately 25 percent and 60 percent, respectively, comparing the first quarter to the previous quarter, primarily as a result of higher levels of
production and strong demand. However, the company’s first quarter results continued to be significantly affected by industry supply/demand dynamics. Average selling prices decreased approximately 20 percent for DRAM and 30 percent for NAND Flash memory products compared to the already low prices realized in the fourth quarter of fiscal 2007. Primarily due to prevailing market conditions, the company
recorded a $62 million write-down of its finished goods and work in process inventories for memory products to reduce their carrying values to their estimated market values.
This write-down is included in the company’s reported cost of goods sold for the first quarter of fiscal 2008. Despite the write-down, the company achieved a decrease in cost of goods sold per megabit in the first quarter of fiscal 2008 of approximately 10 percent and 15 percent for DRAM and NAND Flash memory products, respectively.
Higher levels of production and lower manufacturing costs in the first quarter of fiscal 2008 compared to the fourth quarter of fiscal 2007 were a result of the company’s acceleration of industry-leading process technology, transitions to higher density memory products and significant improvements and growth in the company’s 300mm operations. The company continues to ramp production of 300mm NAND wafers at its IM Flash joint venture fab in Lehi, Utah and 300mm DRAM wafers at its TECH Semiconductor operation in Singapore.
The company ended the first quarter with more than $2 billion in cash and investments. The company had capital expenditures of approximately $885 million during the first quarter and received $150 million
in cash contributions from Intel Corporation, a partner in the IM Flash joint ventures. The company estimates capital expenditures aggregating between $2.5 billion and $3 billion for the 2008 fiscal year, of
which approximately $500 million is estimated to be funded by contributions from joint venture partners.
The company will host a conference call today at 2:30 p.m. MST to discuss its financial results. The call, audio and slides will be available online at www.micron.com. A webcast replay will be available on the company’s Web site until December 20, 2008. A taped audio replay of the conference call will also be available at (706) 645-9291 (conference number: 27073959) beginning at 5:30 p.m. MST today and
continuing until 5:30 p.m. MST on December 27, 2007.
Micron Technology, Inc., is one of the world's leading providers of advanced semiconductor solutions. Through its worldwide operations, Micron manufactures and markets DRAMs, NAND flash memory, CMOS image sensors, other semiconductor components, and memory modules for use in leading-edge computing, consumer, networking and mobile products. Micron's common stock is traded on the New York Stock Exchange (NYSE) under the MU symbol. To learn more about Micron Technology, Inc., visit
www.micron.com. Source: By Micron News
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