Sat, Sep 29, 2012 - Page 14 News List

Micron Technology posts wider loss on memorychip slump

Bloomberg

Micron Technology Inc, the largest US maker of memorychips, reported a wider fourth-quarter loss and lower revenue as lackluster demand for personal computers reduced sales of components.

The net loss for the period that ended on Aug. 30 was US$243 million, or US$0.24 a share, compared with a loss of US$135 million, or US$0.14, a year earlier, the Boise, Idaho-based company said on Thursday in a filing. Revenue fell 8.3 percent to US$1.96 billion.

WEAK DEMAND

Shrinking demand for PCs sent sales of DRAM chips down 9 percent in the quarter, Micron said. Weak demand for parts is a bad sign, especially in the period before the holiday season and ahead of an updated version of Microsoft Corp’s Windows, which traditionally has stoked shipments, JMP Securities LLC analyst Alex Gauna said.

NO WINDOWS BOOST

“It’s concerning, not just for Micron, but for anyone that’s touching it,” Gauna said. “What’s really concerning is the lack of uptick around Windows 8.”

Micron also makes so-called NAND flash memorychips, used to store data in smartphones, which declined in price by an average of 5 percent, the company said.

The slowing of expansion plans by the memorychip industry and elimination of another competitor when Micron completes the ¥200 billion (US$2.57 billion) takeover of Elpida Memory Inc will improve prices next year as demand and supply are better aligned, RBC Capital Markets analyst Doug Freedman wrote in a research note.

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