Micron Technology Q1 Adj. Profit Beats View, But Revenues Miss

(RTTNews) - Chip maker Micron Technology Inc (MU) on Tuesday reported a 79 percent plunge in profit for the first quarter from last year, 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.

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.

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 last year.

Excluding items, adjusted earnings for the quarter were $0.24 per share.

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

Analysts polled by Thomson Reuters estimated earnings of $0.23 per share on revenues of $3.46 billion for the quarter. Analysts' estimates typically exclude special items.

"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.