Micron Sales Surge 62 Percent

Micron Technology Inc. reported a 62 percent surge in revenue, to $1.1 billion, a harbinger of the semiconductor industry's improving conditions.

December 24, 2003

2 Min Read
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Memory manufacturer Micron Technology Inc. reported a 62 percent surge in revenue, to $1.1 billion, in another harbinger of the semiconductor industry's improving conditions.

The results moved the Boise, Idaho, firm into the plus column, as Micron reported operating income of $22 million and net income of $1 million for the first fiscal quarter of 2004 beginning Dec. 4. The company's sales were 25 percent higher compared with the preceding quarter. In the corresponding quarter in the previous year, Micron lost $315.9 million.

"The first quarter gross margin of 26 percent is, in part, a result of worldwide cost-reduction efforts, gains in manufacturing efficiencies, and our leadership in process technology," Steve Appleton, CEO and president, said in a statement. "We are the only company currently shipping all densities of DDR2 DRAM." The firm noted that manufacturing yields improved during the move to 110-nanometer devices.

The company said it sold 15 percent more megabit volume at a 7 percent higher average megabit-selling price. The results generally mirrored improved financials being reported by other semiconductor companies.

The $1 million in earnings were recorded as break-even on a per-share basis. The analysts' consensus report for the quarter had been for a loss of six cents. A $21 million benefit for the sale of some equipment being eliminated cancelled most of a $25 million currency loss due to the weak dollar.Micron also reported it had received $450 million from Intel Corp. "in exchange for the issuance of stock rights exchangeable into 33.9 million shares" of Micron stock. In conjunction, the memory maker said "certain levels of DDR1 production and 300 mm wafer processing capacity, and dedication of resources to advanced product development" will be maintained.

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