BOISE, Idaho, April 6, 2009 – For the second quarter of fiscal 2009, Micron Technology Inc. has posted a net loss of $751 million (or $.097 per diluted share) on net sales of $1 billion.
According to the company, these results reflect a number of cash and non-cash items resulting in a net charge of $120 million in the second quarter of fiscal 2009. The company ended the quarter with cash and investments of $932 million.
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. 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.
Sales volumes for DRAM products remained relatively stable comparing the same periods. Revenue from sales of NAND Flash products decreased 20 percent in the second quarter compared to the first quarter due to a 13 percent decrease in selling prices and an eight percent decrease in sales volume.
Memory production in the second quarter was relatively flat compared to the preceding quarter. Increases in bit production of NAND Flash products resulting from the company’s transitions to higher density 34nm NAND Flash products were offset by decreases in production resulting from the company’s decision to slow down DRAM production at its 200mm facilities and to discontinue production of 200mm NAND Flash wafers at its Boise facility.
“We are actively managing our overall cost structure, capital expenditures and technology execution, which are driving our operating margins ahead of industry trend lines,” said Steve Appleton, chairman and CEO. “Notably, our 34nm NAND technology is ramping rapidly and is providing a competitive differentiation in this challenging economic environment.”
The company’s gross margin on sales of memory products improved 11 percent in the second quarter compared to the previous quarter, resulting from decreases in per gigabit manufacturing costs and the benefit in the second quarter from sales of products previously written-down, partially offset by decreases in selling prices. Cost of goods sold includes charges for unused production capacity, including charges from the company’s Inotera and IM Flash joint ventures.
Excluding the effects of the inventory write-downs and idle capacity charges, per gigabit costs declined significantly for both DRAM and NAND Flash products.
Sales of CMOS image sensors in the second quarter decreased 54 percent compared to the preceding quarter as a result of a sharp decline in unit sales stemming from weakness in consumer markets. The company’s gross margin on sales of imaging products was two percent in the second quarter compared to 29 percent in the first quarter, primarily resulting from higher per unit manufacturing costs associated with a significant decrease in the level of production.
The company’s cost-cutting and restructuring activities have yielded reductions in operating costs and contributed to the company’s cash flow from operating activities in the second quarter.
In addition, the company recently announced that it will phase out the remaining 200mm wafer production at its Boise facility. As a result, the company recorded a restructure charge of $105 million in the second quarter of fiscal 2009, including $17 million of employee-related costs and $87 million of equipment write-downs.
For more information, visit: www.micron.com