Feeds

Micron cuts kit spend on ‘slight’ profit

Investing $300m less on new equipment while DRAM demand still slow

  • alert
  • submit to reddit

US Dramurai Micron Technology yesterday cut is proposed spending on new chip-making equipment and facilities after revealing it had made a profit - just - for its most recently completed fiscal quarter.

For the three months to 1 March - Micron's second quarter of the current fiscal year - the company recorded sales of $1.051 billion. On the back of that, it was "slightly profitable". Micron didn't put a figure to "slightly" - that will come next Monday when the company issues its results in full.

They were due yesterday. The delay arose after Micron's Web and PC maker subsidiary was forced to reschedule the release of its own figures to tomorrow. Lost the office calculator, did you, guys?

Whatever "slightly" means in financial terms, Micron has been inspired to cut its capital spending by $300 million from $2.3 billion, a cut of 13 per cent. The company said that computer makers have now pretty much used up their memory stockpiles - built up in anticipation of high sales at the tail end of 2000, sales that largely never materialised - and have started buying memory again.

However, with PC sales still sluggish, their own demand for memory remains low. In addition, Micron said, wireless, telecom and networking equipment makers still have large memory stockpiles to work through.

$1 billion of Micron's kit budget has already been spent, said company chairman Steve Appleton, shifting to 0.15 micron process technology. Around 30 per cent of all the wafers the company is now punching out are fabbed at 0.15 micron - Micron expects that figure to rise to 50 per cent by the end of the fiscal year. ®

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.