Micron Squeezes By on Earnings, Comparables Weak (MU)

Micron Technology, Inc., (NASDAQ: MU) has announced its quarterly earnings report.  The DRAM giant reported a wider net loss attributable to shareholders of $224 million, or -$0.23 in earnings per share.  Net sales were $2.1 billion, down from about $2.3 billion a year earlier.  Thomson Reuters had estimates of -$0.19 EPS on $2.02 billion in sales.

The company’s consolidated gross margin fell to 13% in the quarter from 15% a year ago, due “primarily to declines in gross margins for the company’s NOR Flash products in the wireless market.”  Sales of NOR Flash products were approximately 11% of all sales in the quarter.

Cash flows from operations for the second quarter were $574 million, and Micron ended the quarter with cash and short-term investments of $2.1 billion.

Micron closed down $0.03 at $8.71 on trading volume of more than 31 million shares.  Without guidance we would treat Micron’s earnings as only partial data until a forecast is given in the conference call.

JON C. OGG