Micron Technology (MU)

[ciciagt]

Micron’s sales surge as chip prices rise
Bloomberg NewsSeptember 25, 2014

Micron Technology Inc., the largest U.S. maker of computer-memory chips, said fiscal fourth-quarter sales rose 49 percent, exceeding analysts’ estimates, as corporate demand for personal computers boosted prices.

Revenue in the quarter that ended Aug. 28 — the end of Micron’s fiscal year — climbed to $4.23 billion, the Boise company said Thursday in a regulatory filing. Profit excluding certain costs was 82 cents a share. Analysts on average projected sales of $4.16 billion and profit of 81 cents.


Revenue in the quarter that ended Aug. 28 — the end of Micron’s fiscal year — climbed to $4.23 billion, the Boise company said Thursday in a regulatory filing. Profit excluding certain costs was 82 cents a share. Analysts on average projected sales of $4.16 billion and profit of 81 cents.

In the last two years, Micron and rival memory producers such as Samsung Electronics Co. have begun to benefit from an industrywide pause in building plants, which eased supply gluts that had hurt prices in the past. The chipmakers are also getting a lift from stronger demand for memory used in PCs and smartphones, said Betsy Van Hees, an analyst at Wedbush Securities in San Francisco.

“The market is in good shape right now,” said Van Hees, who recommends buying Micron stock. “We’re really not concerned about what’s going on in the near term.” Micron’s shares rose 2.7 percent in extended trading following the announcement. The stock, which has gained 46 percent this year, had earlier declined 1.6 percent to $31.70 at the close in New York.

Fourth-quarter net income, which included gains from the sale of a unit, fell to $1.15 billion, or 96 cents a share, from $1.71 billion, or $1.51, a year earlier. But the fourth quarter a year ago included $1.48 billion in accounting gains from Micron’s acquisition of Japan’s Elpida Memory Inc. and Rexchip Electronics Corp.

“We are pleased with the company's performance that resulted in record revenue and earnings for the year," CEO Mark Durcan said. "Continued favorable market conditions and steady execution led to increases in sales volumes and another quarter of strong operating margins and earnings per share."

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