Chip maker Micron Technology Inc. (MU) Wednesday reported a swing to third-quarter profit, on better selling prices and volumes for its DRAM and NAND flash products, reflecting an improvement in the memory market. Results topped Wall Street estimates.
"As the memory market shows improvement in both DRAM and NAND fundamentals, we continue to focus our efforts on advancing our operational efficiency," said CEO Mark Durcan.
Today's results stems consecutive quarterly losses Micron had posted owing to margin and revenue pressures. Like others in the industry, Micron suffered due to the global slowdown in the semiconductor market in 2012, while a pickup is expected in the current year.
Micron's net sales in the quarter increased to $2.32 billion from $2.17 billion in the prior year. On average, 28 analysts polled by Thomson Reuters estimated sales of $2.25 billion.
Sales of DRAM products, used widely in personal computers, were up 23 percent sequentially due to a percent 16 percent rise in average selling prices and a 6 percent growth in volume.
Sales of NAND Flash products were up 7 percent from the prior quarter, on an 8 percent increase in Trade NAND Flash average selling prices.
The Boise, Idaho-based company reported quarterly net income to common shares of $43 million or $0.04 per share, compared with net loss of $320 million or $0.32 per share last year.
Analysts had consensus earnings estimate of $0.02 per share for the quarter. Analysts' estimates typically exclude special items.
During the quarter, Micron restructured a consortium agreement with STMicroelectronics, whereby certain assets and about 500 employees from the company's Agrate, Italy fabrication facility were transferred to the latter. As a result, Micron incurred a charge of $26 million.
Also in the quarter, the company discontinued the development activities of its Light-emitting Diode operations and incurred write-down charges of $25 million.
Meanwhile, results for the prior-year quarter included equity in net losses of equity method investees totaling $115 million.
Micron closed Wednesday at $13.98, up 1.67%, on a volume of 79.5 million shares. In after hours, the stock $0.03 or 0.21%. In the past year, the stock has traded in a range of $5.16 - $14.11.
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