Micron cashes in on chips

Micron Technology, the US Flag-waving DRAM maker, has pulled in record Q4 net income of $727 million, on sales of $2.6 billion.

And for the full year, ended 30 August, the company produced net income of $1.5 billion on net sales of $7.3 billion. Almost all of the money comes from the DRAM business.

What a difference a year makes. Right now, we are approaching the top of the four-year semiconductor cycle which means gin and tonics all around for the industry. Last year it was a different story, with Micron making an net loss in fiscal 1999 on net sales of $3.8 billion.

DRAM unit sales were 140 per cent higher than in 1999 and gross margins jumped to 51 per cent (1999: 28 per cent). The company attributes the improvements to efficiencies wrought from the 1999 acquisition of a fab from TI.

Meanwhile, net sales from Micron's PC business fell as a percentage from 33 per cent in 1999, to 15 per cent in 2000. Gross margins for Q4 2000 were 12 per cent. ®