Micron Technology Posts Third-Quarter Loss

U.S. memory chip maker Micron Technology posted a quarterly loss due to severe price declines across most memory products.

Micron reported a net loss of $225 million, or 29 cents per share, compared with a reported a profit of $88 million, or 12 cents per share, a year earlier.

The company posted net sales of $1.29 billion.

Analysts on average had expected the company to post a loss of 25 cents a share, before exceptional items, on revenue of $1.27 billion, according to Reuters Estimates.

The Boise, Idaho-based company said the price of dynamic random access memory chips fell about 35% and NAND flash products dropped 30%, both sequentially, during the quarter.

"I think investors were largely expecting a very difficult operating environment for the company," Doug Freedman, an analyst with American Technology Research, said by phone.

The company said it was pursuing initiatives to drive cost efficiencies and revenue growth.

Freedman, who has a "buy" rating on the stock, said the inclusion of a statement about the company looking at alternative opportunities is going to be viewed positively.

Contact U.S. News


    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

U.S. Video

  • The bosses at VMS, a credit card processing company in Illinois hand over control of the business to their employees who must address the office dysfunction.

  • VMS is a family owned business and employees feel family members get special treatment. Tensions run high when they are told three people could lose their jobs.

  • Zoe fiercely defends his job when he is at risk to be fired. His passion surprises his fellow co-workers.