Feeds

Micron's near billion dollar turnaround

Sails serenely into profit after restructuring

Internet Security Threat Report 2014

DRAM and NAND flash manufacturer Micron recorded a $204m million profit in its first fiscal 2010 quarter, contrasting vividly with a $718m loss in the year-ago quarter.

Revenues were higher at $1.74bn, compared to $1.4bn in the first fiscal 2009 quarter but costs were sharply down as well. The cost of goods sold went from $1.85bn a year ago to $1.3bn, and selling and general administrative expense improved from $102m to $97m over the same period.

The first quarter of fiscal 2009 saw a lot of restructuring to lower costs, followed by the closure of 200nm wafer manufacturing at Micron's Boise plant in the next quarter. The latest quarter also saw sales improvements, compared to the preceding fourth quarter of fiscal 2009.

Revenue from DRAM product sales increased 50 per cent in the first financial 2010 quarter compared to the fourth quarter due to a 25 per cent increase in sales volume and a 21 per cent increase in average selling prices.

Revenue from sales of NAND Flash products increased 21 per cent in the first quarter compared to the fourth quarter due to a 16 per cent increase in sales volume and a five per cent increase in average selling prices. The company’s gross margin on sales of memory products improved from 12 per cent in the fourth quarter of fiscal 2009 to 27 per cent in the first quarter of fiscal 2010 due primarily to the increases in average selling prices.

As well as the market improving, Micron is also strengthening its technology. This month it introduced a very fast solid state drive (SSD) using the 6Gbit/s SAS interface, and moved to a 34nm process earlier in the year. The company also introduced new DDR3 DRAM technology and has said it will produce a PCIe-connected SSD for servers.

What does Micron CEO and chairman Steve Appleton think this portends: "Our technology, cost competitiveness and strong balance sheet will provide a great foundation for taking advantage of improving market conditions.”

According to iSuppli, Micron ranked fourth in the global NAND flash market in the third calendar quarter of 2009 with its $305m, after Samsung (1 with $1.55bn), Toshiba (2 with $1.36bn) and Hynix (3 with $394m). Its partner in IMTF, Intel, was fifth with $240m revenues. Numonyx was sixth with just $90m. At one point this year, it was speculated that Micron might even acquire Numonyx.

Flash supplier consolidation would help the industry better prepare for the next downturn and control its manufacturing capacity better. We might end 2010 with fewer suppliers in the iSuppli rankings than there are now. ®

Intelligent flash storage arrays

More from The Register

next story
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
Turnbull should spare us all airline-magazine-grade cloud hype
Box-hugger is not a dirty word, Minister. Box-huggers make the cloud WORK
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
Microsoft adds video offering to Office 365. Oh NOES, you'll need Adobe Flash
Lovely presentations... but not on your Flash-hating mobe
prev story

Whitepapers

10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.