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Micron makes more losses on memory way
MAKER OF MEMORY, Micron Technology managed to lose some serious dosh this past quarter, the firm confessed today.
The company outdid even the gloomiest forecasts and blamed its eighth straight quarterly loss on global oversupply.
In its quarter ended December 4th, the company posted a net loss of $706 million, or 91 cents per diluted share, on sales of $1.4 billion, down 8.7 per cent year on year. Analysts were expecting a much smaller loss of 45 cents a share.
"Average selling prices for the company's memory products decreased 34 per cent and 24 per cent for DRAM and NAND Flash products, respectively," the company sobbed.
Sales were up between 35 and 40 per cent on some of its products, but since memory makers were churning out flash products by the bucket load, the chips were as cheap as, er, chips.
Micron CEO Steve Appleton said the firm was cutting back on capital expenditure and hoping supply would become constrained eventually.
The firm has already said that some 15 per cent of its workforce will be axed over the coming year. µ
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How can a business lose money for 2 years straight and still be alive?
How are they managing to do this financially? Are they claiming back taxes from the years they made a profit, or some other way?
When do they predict they will make a profit?
I don't understand how memory manufacture can run at a loss for such a long period of time. Some of them must be making money.