Ahead Of Micron Technology's Q2 Results

(RTTNews) - Chip maker Micron Technology Inc. (MU) is scheduled to release its second-quarter results after the bell on March 30, with analysts polled by Thomson Reuters estimating a loss of $0.08 per share on revenue of $3.05 billion. Analysts' estimate typically exclude certain special items.

Despite current market conditions and challenging financial performance in the last quarter, the company believes it remains confident and is focused on deploying its advanced technology in order to drive enhanced operational leverage for the company.

Micron is known for its memory chips such as DRAM, NAND and NOR Flash that are used in computers. It also makes memory chips for smartphones, as well as solid-state drives.

Reflecting on market conditions, the company believes that DRAM industry bit supply growth will be in a low 20% range in 2016, in line with demand and that industry fundamentals will remain healthy over the long-term. Demand continues to diversify driven by the mobile cloud server and embedded segments, which together balance maturing PC demand.

Looking on to the NAND market, the company expects price competition in client SSDs and eMCPs to continue into the second quarter.

In the previous quarter, the company reported a 79% plunge in profit, reflecting a double-digit decline in revenues on weak demand in chips and lower selling prices. However, adjusted earnings per share for the quarter beat analysts' expectations, while revenues missed their estimates.

The company's first-quarter net income was $206 million or $0.19 per share, down sharply from $1.00 billion or $0.84 per share in the same period of last year.

Non-GAAP net income was $249 million or $0.24 per share compared to $399 million or $0.37 per share in the prior year period.

Net sales for the quarter declined 27% to $3.35 billion from $4.57 billion in the prior year on lower DRAM average selling prices.

Analysts expected earnings of $0.23 per share on revenues of $3.46 billion for the quarter.

"While conditions in some market segments are challenging, we believe long-term industry fundamentals are healthy, and we remain focused on the deployment of our advanced DRAM and 3D NAND technologies and products," said Micron CEO Mark Durcan.