Boise, Idaho-based Micron Technology Inc. earned net income of $188 million, or 29 cents per diluted share, on net sales of $4.88 billion for its fiscal year ended September 1, the company reported late Thursday.

Q4 sales were up 19 percent sequentially and 5.8 percent year-over-year, while fiscal year sales were up 10.8 percent.

For its Q4, Micron earned net income of $43 million, or 7 cents per diluted share, on net sales of $1.26 billion, sequentially compared to Q3’s net loss of $128 million, or 20 cents per diluted share, on net sales of $1.05 billion.

The growth in net sales in Q4 compared to Q3 primarily resulted from an approximate 15 percent increase in DRAM sales, a 40 percent increase in sales of CMOS image sensors and NAND Flash memory sales that were five times higher compared to the prior quarter, the company noted.

Gross margin in Q4 was $282.2 million, compared to 86.6 million in Q3, and $392.6 million in Q4 2004.  For the fiscal year, gross margin was $1.15 billion, compared to $1.31 billion for fiscal 2004.

In Q4, sales of specialty DRAM products including synchronous and pseudo-static represented approximately 30 percent of net sales and sales of CMOS image sensors and NAND Flash memory products combined to represent approximately 15 percent of net sales. Sales of DDR and DDR2 DRAM products represented slightly more than one half of Micron’s net sales for Q4. The higher level of DRAM sales reflects the combination of a 10 percent increase in megabit sales and a 3 percent increase in average selling prices.

“Micron’s efforts to strengthen our product lines through expansion of our specialty DRAM products, CMOS image sensors and NAND Flash memory products continue to have a positive impact on our gross margin,” said Steve Appleton, chairman, president and CEO of Micron, in a statement.

“We continue to dedicate additional resources to expanding our presence in the mobile, consumer and server markets while remaining a leading DRAM supplier for computing applications,” he added.

Megabit production in Q4 increased approximately 15 percent compared to Q3. During Q4, the company continued its ramp of 300mm wafer production, reaching its initial target of 5,000 wafer outs per week. The level of megabits in finished goods inventories remained flat compared to Q3, but decreased in terms of days sales in inventory due to the higher level of sales in Q4.

For fiscal year, the company’s megabit sales increased approximately 40 percent compared to the previous fiscal year, while overall average selling price decreased approximately 25 percent compared to fiscal 2004, while the average selling price for DDR2 DRAM products decreased approximately 40 percent.

Megabit production in fiscal 2005 was approximately 50 percent higher than the previous fiscal year, reflecting significant improvements in manufacturing efficiencies across the company’s diversified product portfolio and the ramp of its 300mm wafer production, the company concluded.

By: DocMemory
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