Micron Technology

Micron Technology Profit Slides

Memory chip costs are plummeting. The standard selling price of its center lively random-access memory chip is down 23 percent.

However, Chairman and CEO Steve Appleton isn’t forecasting darkness — in any case, not for Micron.

The diversification of the company is serving weather the cost cycles of the memory chip industry, he notified analysts after Micron stated one more quarterly profit, even though one that fell short of analysts’ prospect by approximately half.

One forecaster said the almost $3 billion Micron had hit away in cash and investments by the last part of its fourth quarter in August will assist maintain Micron during scanty times that might end some additional months. The cash may perhaps even assist the company raise up several assets on the inexpensive, an analyst for iSuppli, Mike Howard said, which goes after the tech industry.

Micron Technology

In the previous week during the annual meeting, Appleton forecasted that merely two or three of the 11 memory fragment manufacturers may possibly stay alive. He said, in a phone conference with Micron analysts, “The majority of our rivalry is not in extremely excellent form.”

Micron stays appearing for chances. In advance this year, Micron purchased Swiss company Numonyx Holdings B.V., which creates two kinds of memory that Micron was not creating, in a stock deal prized at $1.2 billion.

Howard said market share of Micron for lively random-access memory, its principal product, is concerning 11 percent based on revenue. Developments, during getting control of other presented production facilities, might get bigger Micron’s occurrence in the market with no totaling to overproduction, he said.