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Oct 4 Memory-chip maker Micron Technology Inc
reported better-than-expected fourth quarter revenue,
which saw its smallest decline in a year, as pricing improves
and the personal computer market shows signs of rebound.
Micron forecast first-quarter adjusted profit of 13-21 cents
per share, while analysts were expecting a profit of 9 cents,
according to Thomson Reuters I/B/E/S. It would represent the
company's first profit in three quarters.
The company's share were marginally higher at $17.92 in
after-market trading on Tuesday.
Micron, which manufactures DRAM chips used in PCs and NAND
flash memory chips widely used in smartphones to store music,
pictures and data, has enjoyed a recovery in the last six months
amid signs of improvement in the market.
"We are seeing improving market conditions in terms of both
slowing supply growth and improving demand across a number of
key segments," Micron CEO Mark Durcan said.
With DRAM prices rebounding to 7 month highs, Micron is
benefiting as the supply glut in the market has dried up
following aggressive cut backs in production amid signs of a
bounce back in demand.
Prices of both DRAM and NAND chips are expected to rise in
the fourth quarter, according to research firm TrendForce, with
DRAM prices anticipated to rise over 10 percent from the
On an adjusted basis, Micron lost 5 cents per share, beating
estimates of a loss of 12 cents per share.
The net loss attributable to company's shareholders was $170
million, or 16 cents per share, in the fourth quarter, compared
with a profit of $471 million, or 42 cents per share, a year
The latest quarter included a $58 million charge related to
a restructuring program the company announced in the third
Micron's net sales fell 10.6 percent to $3.22 billion in the
fourth quarter. Analysts on average were expecting revenue of
Up to Tuesday's close, the stock had risen 25.7 percent this
year, on par with the nearly 25 percent gain in the broader
Philadelphia SE Semiconductor Index during that period.
(Reporting by Narottam Medhora in Bengaluru)