Memory Chip Maker, Micron loses 27% Revenue
After-hours trading on Tuesday following a reported quarterly revenue and forward guidance that did not meet estimations, memory chip maker, Micron loses 27% revenue to $3.35 billion in the first quarter. This is lower than the 3.46 billion that analysts had projected. Micron is also expecting that recent quarter revenue will drop somewhere between $2.9 billion and $3.2 billion. Analysts had anticipated a $3.5 billion revenue in the current quarter.
Good thing, this is not bottom line for Micron. The posted net income of the company reached $206 million which is equivalent to 19 cents per share. After necessary adjustments, the earnings came in at 24 cents per share which is higher than the 23 cents per share projected by analysts.
Micron is a memory chip maker company based in Boise, Idaho. They also manufacture DRAM, NAND and NOR Flash, which are all vital parts of computers, smartphones and other electronic devices. Making great efforts in the midst of soft demand for PCs, Micron attributed the lower revenues for the first quarter of fiscal 2016 as compared to the fourth quarter of fiscal 2015 to the downcast 13% decline in the average selling prices of DRAM, which is a major part in computers.
In a statement released by CEO Mark Durcan, he said, “While conditions in some market segments are challenging, we believe long-term industry fundamentals are healthy, and we remain focused on the deployment of our advanced DRAM and 3D NAND technologies and products.”
The unstable trade revenues for the first quarter of fiscal 2016 dropped 2% compared to the fourth quarter. The main reason for this is the 7% drop in average selling prices which in part compensated by the increase in sales volume. Micron has 25% overall consolidated gross margin for first quarter of fiscal 2016. This is 2% lower weigh against numbers in the fourth quarter of fiscal 2015.