Based on the latest performance, the memory semiconductor vendor is on track to post its third consecutive fiscal year loss unless demand and profitability rebounds strongly in the second half of the 12-month period. Micron reported a net loss of $751 million, or 97 cents per share, for the quarter ended March 5, compared with net loss of $777 million, or $1.01 per share, in the second quarter of fiscal 2008. Sales tumbled 29 percent to $993 million from $.14 billion.

The company said demand remains weak across the industry and said mounting pressure on average selling prices worsened the situation. In addition, manufacturing capacity continue to exceed current demand, according to Micron, which said ASP fell 30 percent from the immediately preceding quarter.

"The imbalance of supply and demand for semiconductor memory products continued in the second quarter, resulting in significant decreases in the company's per gigabit average selling prices compared to the preceding quarter," Micron said in a statement.

"Revenue from sales of DRAM products decreased approximately 30 percent in the second quarter compared to the first quarter principally due to a 30 percent decrease in selling prices," the company said. Micron has now racked up net losses in at least the last six quarters and its cost of goods sold remain far above sales, meaning the company will likely continue to post operating losses until it can successfully lower its manufacturing costs or dramatically push up sales.

In the just concluded quarter, for instance, Micron posted gross profit margin of minus 27 percent, an improvement upon the minus 32 percent it recorded in the prior quarter though worse than the negative 3.2 percent it reported for the year-ago comparable quarter.

The company said it is working on reducing operating costs and said actions already taken are impacting operations positively.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved