Skip to main content

Micron profit beats estimates as chip prices climb

Micron Inc reported a better-than-expected quarterly profit due to higher prices for its memory chips used in personal computers, mobile handsets and tablet devices.

The company said average selling prices of its dynamic random access memory (DRAM) chips, mostly used in PCs and which accounted for 39 percent of revenue last year, rose 16 percent during the quarter.

 

Memory supply constraints have driven up prices this year, with DRAM prices more than doubling, Jefferies & Co analysts said in a pre-earnings note.

Prices are expected to remain stable or rise further through the year.

Chip suppliers are converting capacity to supply DRAMs for mobile handsets as demand for such chips for PCs is declining, Pacific Crest Securities analyst Monika Garg said.

Analysts said Micron is also likely to benefit from higher use of DRAM chips in mobile handsets from the fourth quarter and increased focus on lower cost notebooks by Intel Corp, Microsoft Inc and PC manufacturers.

Micron's proposed acquisition of bankrupt Japanese chipmaker Elpida Memory Inc moved closer to completion after a key deadline for U.S. creditors to raise objections passed without a legal challenge earlier this month.

The company reported a net profit - its first in eight quarters - of $43 million, or 4 cents per share, in the third quarter, compared with a loss of $320 million, or 32 cents per share, a year earlier.

Revenue rose 7 percent to $2.32 billion.

Analysts on average had expected a profit of 2 cents per share on revenue of $2.25 billion, according to Thomson Reuters I/B/E/S.

Micron's shares closed at $13.97 on the Nasdaq on Wednesday. They have more than doubled in value over the last six months.

(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Sriraj Kalluvila)

Popular posts from this blog

Study Abroad USA, College of Charleston, Popular Courses, Alumni

Thinking for Study Abroad USA. School of Charleston, the wonderful grounds is situated in the actual middle of a verifiable city - Charleston. Get snatched up by the wonderful and customary engineering, beautiful pathways, or look at the advanced steel and glass building which houses the School of Business. The grounds additionally gives students simple admittance to a few major tech organizations like Amazon's CreateSpace, Google, TwitPic, and so on. The school offers students nearby as well as off-grounds convenience going from completely outfitted home lobbies to memorable homes. It is prepared to offer different types of assistance and facilities like clubs, associations, sporting exercises, support administrations, etc. To put it plainly, the school grounds is rising with energy and there will never be a dull second for students at the College of Charleston. Concentrate on Abroad USA is improving and remunerating for your future. The energetic grounds likewise houses various

Best MBA Online Colleges in the USA

“Opportunities never open, instead we create them for us”. Beginning with this amazing saying, let’s unbox today’s knowledge. Love Business and marketing? Want to make a high-paid career in business administration? Well, if yes, then mate, we have got you something amazing to do!   We all imagine an effortless future with a cozy house and a laptop. Well, well! You can make this happen. Today, with this guide, we will be exploring some of the top-notch online MBA universities and institutes in the USA. Let’s get started! Why learn Online MBA from the USA? Access to More Options This online era has given a second chance to children who want to reflect on their careers while managing their hectic schedules. In this, the internet has played a very crucial in rejuvenating schools, institutes, and colleges to give the best education to students across the globe. Graduating with Less Debt Regular classes from high reputed institutes often charge heavy tuition fees. However onl

Sickening moment maskless 'Karen' COUGHS in the face of grocery store customer, then claims she doesn't have to wear a mask because she 'isn't sick'

A woman was captured on camera following a customer through a supermarket as she coughs on her after claiming she does not need a mask because she is not sick.  Video of the incident, which has garnered hundreds of thousands of views on Twitter alone, allegedly took place in a Su per Saver in Lincoln, Nebraska according to Twitter user @davenewworld_2. In it, an unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of the customer recording her. Scroll down for video An unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of a woman recording her A woman was captured on camera following a customer as she coughs on her in a supermarket without a mask on claiming she does not need one because she is not sick @chaiteabugz #karen #covid #karens #karensgonewild #karensalert #masks we were just wearing a mask at the store. ¿ o