Memory chip maker Micron Technology, Inc. (MU) said Wednesday after the markets closed that it swung to a third quarter loss, as margins fell sharply.
The company's quarterly loss was bigger than what analysts expected, but its quarterly sales came in above analysts' expectations.
Micron shares are currently losing 2.45% in after hours trading after closing the day's regular trading session at $6.12, up 2 cents. The shares trade in a 52-week range of $3.97 to $9.16.
The Boise, Idaho-based company reported a net loss for the third quarter of $320 million or $0.32 per share, compared to net income of $75 million or $0.07 per share for the year-ago quarter.
This marks the company's fourth consecutive quarterly loss.
On average, 26 analysts polled by Thomson Reuters expected the company to report a loss of $0.20 per share for the third quarter.
Gross margin for the third quarter fell to 10.8% from 22.3% in the prior year quarter.
Net sales for the third quarter grew 1.4% to $2.17 billion from $2.14 billion in the same quarter last year. Twenty-seven analysts had a consensus revenue estimate of $2.00 billion for the third quarter.
The company said third quarter revenue from sales of NAND Flash products grew slightly from the first quarter level, due mainly to a 40% increase in sales volume partially offset by a decrease in average selling prices.
Third quarter revenue from sales of DRAM products rose 20% sequentially, due mainly to a 12% increase in sales volume and a 7% increase in average selling prices.
Sales of NOR Flash products were about 10% of total net sales for the third quarter.
DRAM chips are most widely used in personal computers, while NAND Flash memory chips are used in iPods, digital cameras and other portable devices. In memory chip market, Micron competes with industry leader Samsung and Hynix Semiconductor among others. Micron has expanded into a new area of the memory market known as NOR with its $1.2 billion acquisition of Numonyx last year.
Last month, Micron confirmed it was engaged in talks with trustees of bankrupt Japanese chipmaker Elpida Memory, Inc. to acquire Elpida's business. The deal would increase Micron's global market share for DRAM chips, and give it access to Elpida's technology in chips for smartphones and tablets.
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