Micron Technology, Inc., (NYSE:MU) today announced results of operations for the company’s third quarter of fiscal 2008, which ended May 29, 2008. For the third quarter of fiscal 2008, the company posted a net loss of $236 million, or $0.30 per diluted share, on net sales of $1.5 billion. These results compare to GAAP results for the second quarter of a net loss of $777 million, or $1.01 per diluted share, or on a non-GAAP basis for the second quarter (which exclude the effect of a goodwill impairment charge) of a net loss of $314 million, or $0.41 per diluted share, on net sales of $1.4 billion.
The company’s net sales in the third quarter of fiscal 2008 increased 10 percent compared to the second quarter primarily from higher sales of both DRAM and NAND Flash memory products. Sales of DRAM products in the third quarter of fiscal 2008 increased compared to the second quarter as a result of an approximate 10 percent increase in gigabit sales, partially offset by an approximate 5 percent decrease in average selling prices. For the same periods, sales of NAND Flash products increased as a result of an approximate 40 percent increase in gigabit sales, partially offset by an approximate 20 percent decrease in the average selling price. The dollar amount of finished goods inventories for memory products at the end of the third quarter remained fairly stable compared to the second quarter, as higher levels of production were substantially offset by the higher sales volumes and improvements in the company’s manufacturing costs per bit. Cost of goods sold per gigabit in the third quarter decreased approximately 15 percent and 25 percent compared to the second quarter for DRAM and NAND Flash memory products, respectively.
“Micron continues to execute strongly on its cost reductions through advanced technology deployment and 300 millimeter manufacturing efficiencies, resulting in a positive gross margin in the third quarter,” said Mark Durcan, Micron President and Chief Operating Officer. “The combination of our premium product portfolio plus recent substantial cost per bit reductions has positioned us well.”
Sales of CMOS image sensors in the third quarter of fiscal 2008 increased 27 percent compared to the second quarter and represented 11 percent of the company’s total sales in the third quarter. The company’s gross margin on sales of imaging products improved to 35 percent in the third quarter compared to 24 percent in the second quarter, reflecting a greater mix of higher megapixel sensors.
The company generated $217 million in cash flow from operating activities during the third quarter of fiscal 2008 and ended the quarter with $1.6 billion in cash and investments. The company had capital expenditures during the third quarter of fiscal 2008 of $577 million and expects total capital expenditures for the 2008 fiscal year to be between $2.5 billion and $3.0 billion. In the third quarter of fiscal 2008, TECH Semiconductor, a consolidated joint venture, entered into a $600 million credit facility to refinance its existing debt of $240 million and to finance future capital expenditures.
The company will host a conference call today at 2:30 p.m. MDT to discuss its financial results. The call, audio and slides will be available online at http://www.micron.com . A webcast replay will be available on the company’s Web site until June 26, 2009. A taped audio replay of the conference call will also be available at 706-645-9291(conference number: 50696269) beginning at 5:30 p.m. MDT today and continuing until 5:30 p.m. MDT on July 3, 2008.
Micron Technology, Inc., is one of the world’s leading providers of advanced semiconductor solutions. Through its worldwide operations, Micron manufactures and markets DRAM, NAND flash memory, CMOS image sensors, other semiconductor components, and memory modules for use in leading-edge computing, consumer, networking and mobile products. Micron’s common stock is traded on the New York Stock Exchange (NYSE) under the MU symbol.