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Micron posts wide 3Q loss
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June 23, 1999: 6:41 p.m. ET
Memory-chip maker attributes shrinking gross margins to drop in prices
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NEW YORK (CNNfn) - Micron Technology Inc. Wednesday reported fiscal third-quarter earnings well below Wall Street estimates as the computer- memory chipmaker said falling prices cut into its gross margins.
For the quarter ended June 3, Micron (MU) reported a loss of $28 million, or 10 cents a share. Analysts polled by First Call expected the Boise, Idaho-based company to break even on a per-share basis for the quarter. Revenue climbed 41 percent to $864 million.
Micron's performance outstripped last-year's third-quarter results, when it posted a loss of $109 million, or 51 cents a share, on $613 million in revenue.
Micron attributed a sequential gross margin reduction in its semiconductor operations to a 27-percent decline in pricing of 64 megabyte random access memory chips.
Looking ahead to the fourth quarter, Micron said it expects to take a pre-tax charge of $9 to $12 million related to the closure of its subsidiary Micron Communications. The unit is expected to cease operations in the fourth quarter in connection with the company's decision to discontinue its funding of its radio frequency identification development efforts.
Micron shares fell 1-5/16 to close at 43-15/16 on the New York Stock Exchange prior to the earnings announcement.
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Micron
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