Micron reports rocky Q3 earnings, losses

Micron reports a major net loss that is attributable to shareholders, but sales numbers saw an uptick.

Analyst hopes weren't high for Micron leading up to the third quarter earnings announcement on Wednesday after the bell.

Micron reported a net loss attributable to Micron shareholders of $320 million, or 32 cents a share, (statement). But Micron also reported net sales of $2.2 billion, up from $2.0 billion last quarter.

Wall Street was expecting Micron to report a loss of 19 cents per share on a revenue of $2.01 billion.

The quarter could have been worse for the semiconductor solutions provider if it weren't for DRAM product sales.

Revenues from sales of DRAM products in the third quarter of fiscal 2012 were 20 percent higher due primarily to a 12 percent increase in sales volume and a 7 percent increase in average selling prices compared to the second quarter of fiscal 2012, which included the adverse impact of a $58 million charge to revenue. Revenues from sales of NAND Flash products were slightly higher in the third quarter of fiscal 2012 compared to the second quarter of fiscal 2012, due primarily to an approximate 40 percent increase in sales volume offset by decreases in average selling prices.

Micron added that sales margin improvements for sales of DRAM and NOR Flash products were partially offset by declines in margins from sales of NAND Flash products.

By the numbers:

  • Cash flows from operations for the third quarter of fiscal 2012 were $686 million, which included a $300 million customer advance from Intel in connection with the company's recently announced expansion of its IM Flash activities.
  • Micron raised approximately $875 million in convertible debt financing, net of costs associated with capped call transactions and other costs. The company invested approximately $325 million in capital expenditures.
  • Micron ended the third quarter with cash and investments of $2.7 billion.

Related:

Newsletters

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
See All
See All