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.