Friday, March 21, 2003
Micron Technology, Inc., today announced a second quarter net loss of $619 million, or $1.02 per diluted share.
The second quarter operating results include charges of $197 million for the write-down of work in process and finished goods inventories to their estimated market values, and restructure and other charges of $116 million.
Absent these restructure and other charges and the net effects of the current quarter and prior quarters' inventory write-downs of $99 million, the company's operating loss for the second quarter of fiscal 2003 would have been $386 million. The comparable loss for the first quarter of fiscal 2003 was $345 million.
Sales for the second quarter, ended February 27, were $785 million, or 15%, higher than the immediately preceding quarter.
Average selling prices per megabit for the company's semiconductor products were down slightly in the second quarter compared to the immediately preceding quarter. This decrease reflects the net effect of a significant decrease in selling prices for DDR DRAM products, partially offset by increases in the selling prices for synchronous DRAMs.
DDR DRAM products comprised approximately 60% of the company's megabit sales in the second quarter of fiscal 2003, compared to approximately 40% in the first quarter of fiscal 2003.
The company's sales volume as measured in megabits increased approximately 20% in the second quarter of fiscal 2003 compared to the previous quarter. The higher level of megabit sales reduced the company's finished goods inventories to their lowest level, as measured in weeks of sales on hand, since 1999.
During a conference call with financial analysts, Appleton for the first time estimated Micron's capital spending in its next fiscal year 2004 would about the same as the $1 billion targeted for the current fiscal year. He said $730 million in capex has already been spent in the first six months of fiscal 2003.
He said R&D spending in the second fiscal quarter was $174 million, up from $155 million the previous period and is expected to rise to $195 million in the current fiscal quarter. This includes increased development of the firm's 300mm wafer products, now being produced on a Manassas, Va., fab pilot line.
Appleton reiterated that Micron would move into full 300mm production when the cost-per-bit was less than the current 0.11-micron 200mm wafer fabs, "but we are several quarters away before we have to make that decision."
By: DocMemory
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