The company's excuse was the same as everyone elses – the memory chipmaker is struggling with weak demand for chips used in personal computers and lower average selling prices. The estimate is its first loss in more than two years.
Micron, which makes DRAM and NAND flash memory chip revenue of $2.9 billion-$3.2 billion for the current quarter ending March 5. The cocane nose jobs of Wall Street were expecting a profit of 22 cents and revenue of $3.46 billion.
It looks like the company faced its seasonally weak quarter with a weaker-than-expected end-market demand. Micron, which competes with Samsung and SK Hynix has been investing to ramp up production of its higher-margin 20 nm DRAM chips and develop more efficient and cost-effective 3D NAND chips.
Micron earlier this month agreed to buy the remaining interest in Taiwanese chipmaker Inotera Memories in a $3.2 billion deal. But the company said that the reason for the loss was declining pricing particularly in the PC DRAM segment.
Net income attributable to Micron fell to $206 million, or 19 cents per share, in the quarter ended Dec. 3, from $1 billion, or 84 cents per share, a year earlier.
Net sales fell 26.7 percent to $3.35 billion, missing the average analyst estimate of $3.46 billion.