Micron Beats Earnings Estimates
Micron’s diversification efforts resulted in a larger-than-expected profit in its third quarter, although sales fell short of Wall Street expectations. The Boise, Idaho, company said it earned $89 million, or 12 cents a share, in the three months ended June 1, with total sales of $1.31 billion.
Sales of NAND flash memory represented 5% of total sales during the quarter, while imaging chips used in cell phone cameras made up 16% of overall sales. The rising prices for DRAM also helped the bottom line. According to Micron, the average selling prices per megabit for DDR and DDR2 memory products increased 20%. Overall megabit DRAM sales however declined approximately 15% sequentially as production resources were shifted to flash and imaging chip production. Micron’s gross margin during the third quarter was 25%, compared with 19% in the second quarter.
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