Feeds

PCs, servers push Micron to profits

Recovery from meltdown

The next step in data security

Micron bagged $365m in profits during its latest fiscal quarter, completely rebounding from a $763m loss this time last year.

In the quarter ended March 4, Micron's sales nearly doubled to $1.96bn, but costs were only up a smidgen. For the six months ended in March - which more or less encompasses the period of stabilization in the IT sector after the economic meltdown caused all sub-segments of the IT biz to freeze up - Micron's sales rose by 54.5 per cent to $3.7bn, and its net earnings came to $569m, a whole lot better than the $1.48bn loss the company booked in the first half of fiscal 2009. Micron exited the second quarter of fiscal 2010 with $1.87bn in cash and equivalents.

Steve Appleton, Micron's chairman and CEO, said that the chip maker positioned itself well during the recession, and is now reaping the benefits of technology investments, operational control, a broader portfolio of memory and flash products, and the economic rebound.

Micron's DRAM product sales were up 24 per cent in the quarter, with unit volumes up 17 per cent and average selling prices for memory rising by 7 per cent compared to a year ago; profits for memory products were assisted mightily with the cost of goods sold for memory dropping 7 per cent on a per-gigabyte basis. Average selling prices for NAND flash products dipped 1 per cent, and that pulled down revenues, but the cost of goods sold for NAND fell at 6 per cent, helping to boost profits.

In a conference call with Wall Street analysts, Mark Adams, Micron's VP of worldwide sales, said that fatter memory configurations are helping to pump up Micron's numbers. The shift to DDR3 memory is helping, since DDR3 modules tend to be fatter, but DDR2 memory shipments were also up in terms of aggregate bit capacity by 11 per cent compared to the first fiscal quarter. That's still lower than the 28 per cent sequential growth for DDR3 capacity shipped. DDR3 memory accounted for 45 per cent of total memory shipped, by bits, in the quarter.

Micron is particularly excited about its prospects with server-related memory sales expected to more than double to $2.6bn this year, and networking-related memory sales to account for $2.4bn, an increase of 60 per cent over 2009's sales levels. (These are non-PC DRAM sales figured cited by Micron from Gartner, and presumably global figures. Although that server memory number seems pretty low.) In the second fiscal quarter ended, DRAM revenues relating to servers were up 22 per cent, and server customers are forecasting growth this year of anywhere between 80 and 100 per cent in this segment. DRAM sold to networking and storage providers rose 24 per cent in the quarter, with ASPs up 20 per cent. ®

Security for virtualized datacentres

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
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.