Tuesday, July 17, 2012

Micron FY Q3 Sales Top Ests; Stock Falls In Late Trading

Micron Technology (MU) shares are trading lower this afternoon after the DRAM maker reported results for its fiscal third quarter ended June 3.

The company posted revenue of $2.29 billion, well ahead of the Street at $2.08 billion, and up from $1.1 billion a year ago.

Micron posted net income for the quarter of $939 million or 92 cents a share, including a $488 million gain relating to the acquisition of Numonyx, $64 million in SG&A expenses related to accruals for estimated settlements in the company’s indirect purchasers antitrust case and other matters and a $41 million benefit related to price adjustments from suppliers of NAND products.

The company noted that revenue from DRAM products was up 10%, on a 9% increase in ASPs and a slight increase in units. NAND revenues were up 16%, on a 21% increase in sales volume, partially offset by a 4% decline in ASPs.

Micron said it repaid $378 million in debt in the quarter, and finished the quarter with more than $2.3 billion in cash and investments.

Gross margin in the quarter was 37.1%, up from 32.7% in the quarter ended March 4, and 9.7% a year ago.

Micron in late trading is down 47 cents, or 4.7%, to $9.55; the stock had rallied 56 cents in the regular session.

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