Feeds

Micron makes a profit!

First Q for three years

  • alert
  • submit to reddit

New hybrid storage solutions

Micron has declared its first quarterly profit for three years. True, it's a titchy profit, just $1.1m on sales of $1.1 billion for Q1, the best-selling period of the year, ended December 4.

But the revenue line and the fact that Micron, is back in the black, shows that the DRAM market is picking up at long last. Compare and contrast with Q1 last year, when the company, America's last DRAM maker, produced a net loss of $315.9m on sales of $685.1m.

And the market will stay picked up in the medium term, according to IDC, which is forecasting industry revenue increases in 2004 and 2005. And then in 2006, as is the way of the memory market, over-production will see revenue falls once more.

Micron attributes its own turnaround to higher average selling prices and better manufacturing performance. In the late 90s, The Boise, Idaho firm had a good bull run, by coming to market with new DRAM technologies more quickly than its rivals. But worldwide oversupply in recent years, helped by state-subsidised rivals and slower than expected consolidation - mostly because basketcase Hynix is still around as an independent - resulted in a collapse of prices.

This hurt Micron badly. Without profits it was unable to innovate so quickly as before. Indeed, it was finding the pace difficult to keep up with market leader Samsung.

In January this year Micron raised $500m through a convertible bond issue, to fund "general working capital, R&D and managing the transition to new technologies and manufacturing processes". As we wrote at the time, the fact that Micron could go to market with an issue shows some strength; the fact that it needed to go to market shows the terrible weakness of the DRAM market.

In September this year, Intel pumped $450m into Micron, to help the company speed up production of DDR 2 server memory. ®

Related stories

Micron calls on market for $500m
Intel pays Micron to boost server RAM output

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.