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Micron Technology, Inc., Reports Results for the First Quarter of Fiscal 2012
BOISE, Idaho, Dec. 21, 2011 (GLOBE NEWSWIRE) — Micron Technology, Inc., (Nasdaq:MU) today announced results of operations for its first quarter of fiscal 2012, which ended December 1, 2011. For the first quarter, the company had a net loss attributable to Micron shareholders of $187 million, or $0.19 per diluted share, on net sales of $2.1 billion. The results for the first quarter of fiscal 2012 compare to a net loss of $135 million, or $0.14 per diluted share, on net sales of $2.1 billion for the fourth quarter of fiscal 2011, and net income of $155 million, or $0.15 per diluted share, on net sales of $2.3 billion for the first quarter of fiscal 2011.
The company’s consolidated gross margin remained at 15 percent for the first quarter of fiscal 2012. Improvements in NAND Flash margins were offset by declines in DRAM. Revenue from sales of NAND Flash products was 6 percent higher in the first quarter of fiscal 2012 compared to the fourth quarter of fiscal 2011 due to an 18 percent increase in sales volume partially offset by a 10 percent decrease in average selling prices. Revenue from sales of DRAM products was essentially unchanged in the first quarter of fiscal 2012 compared to the previous quarter, as a 14 percent increase sales volume was offset by a 12 percent decrease in average selling prices. Sales of NOR Flash products were approximately 14 percent of total net sales for the first quarter of fiscal 2012.
Cash flows from operations for the first quarter of fiscal 2012 were $404 million. During the first quarter of fiscal 2012, the company invested approximately $750 million in capital expenditures. The company ended the quarter with cash and short-term investments of $1.9 billion.
The company will host a conference call Wednesday, Dec. 21 at 2:30 p.m. MST to discuss its financial results. The call, audio and slides will be available online at https://investors.micron.com/events.cfm. A webcast replay will be available on the company’s website until Dec. 28, 2012. A taped audio replay of the conference call will also be available at (404) 537-3406 (conference number: 37217947) beginning at 5:30 p.m. MST Wednesday, Dec. 21, 2011 and continuing until 5:30 p.m. MST on Wednesday, Dec. 28, 2011.
No doubt that Micron is a force to be reckoned with in the SSD market, given their semiconductor status. If you have the fab, half of the uphill climb is complete. Controller and firmware is the challenge. Micron was late to the SSD market, as compared to Intel, so their growth is relative to their entry point and sales.
Enterprise is a completely different animal. In order for Micron to penetrate this market, they will have to dedicate firmware resources to comply with the big computing boys’ requirements. In order for Micron (or any other semiconductor company) to invest in these resources, there will have to be (big) volume. Is there “big” volume in Enterprise today?
From several presentations that i have seen, one from the CEO of SanDisk at AIS 2011, Enterprise flash usage is pegged at 1% right now. Certainly a product that is gaining traction, but there is a huge divide there.