MEMORY MAKER Micron announced a seven percent jump in revenues and a $43m profit for its fiscal third quarter as DRAM sales started to pick up.
Micron, which is in the midst of buying Japanese memory manufacturer Elpida, had posted a painful $286m loss last quarter. However the firm was back in the black as revenues hit $2.3bn, a rise of seven percent from the same period in 2012, that in turn helped the firm post a $43m profit.
According to Micron its DRAM sales have significantly picked up in the last three months, in a market that has been suffering for years, with sales up by 23 percent. The firm also reported improved gross margins for both DRAM and NAND memory, indicating that it is starting to make more money on chips used in solid-state disk (SSD) drives.
Micron CEO Mark Durcan said, "As the memory market shows improvement in both DRAM and NAND fundamentals, we continue to focus our efforts on advancing our operational efficiency. We have also made progress in securing the necessary approvals related to the Elpida acquisition and are optimistic we will be able to close the transaction in our fiscal fourth quarter ending August 29, 2013."
Micron is in the middle of trying to buy bankrupt Japanese memory maker Elpida to compete with Samsung and SK Hynix in the DRAM market. The firm's improving financials and in particular gross margins on both DRAM and NAND are a good sign for the firm, as should it complete the purchase of Elpida it can offer further economies of scale and the ability to compete with the two industry giants for higher volume contracts. µ