Thursday, October 2, 2008
Micron Technology Inc. announced some cost control measures after reporting a $1.6 billion loss for its fiscal year ended Aug. 28, but conceded that it faces ongoing challenges in a memory market plagued by oversupply and price degradation.
Micron announced a 20 percent reduction in salaries for senior executives. The company also lowered its capital expenditure plans for fiscal 2009, saying it would spend about $1 billion to $1.3 billion, down from a previous budget of $1.5 billion to $2 billion.
The $1.6 billion net loss for fiscal 2008 came on revenue of $5.8 billion, up from $5.7 billion in fiscal 2007, when the company posted a loss of $320 million. The company posted a fiscal fourth quarter net loss of $344 million, more than twice the $158 million loss posted in the same period of 2007. Revenue from DRAM and NAND flash products declined sequentially as DRAM bit volume slipped and NAND ASP declines of about 20 percent offset production cost reductions of about 15 percent.
Micron said DRAM ASPs were relatively flat during the quarter ended Aug. 28, but that NAND ASPs declined about 20 percent. Since the quarter closed, NAND ASPs are down 30 to 35 percent and DRAM ASPs are down 15 to 20 percent, executives said.
Due to a sharp decline in ASPs during the last half of the quarter, Micron wrote down its memory inventory by $205 million to bring it in line with estimated market value, said Ronald Foster, Micron's chief financial officer.
By: DocMemory
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