Micron Technology has reported net sales of $1.7bn for the first quarter of 2010, up 24% compared to $1.4bn for the same period last year.
The company posted an operating income of $201m for the first quarter, compared to operating loss of $672m for the same period last year. The company’s gross margin on sales of memory products rose from 12% in the fourth quarter of fiscal 2009 to 27% in the first quarter of fiscal 2010, due primarily to the increases in average selling prices
Net income for the quarter was $204m for the quarter ended December 3, 2009, compared to net loss of $718m for the same period last year. Basic earnings per share were $0.24 compared to loss per share of $0.93. The first quarter of fiscal 2009 includes a charge of $369m to write down the carrying value of work in process and finished goods inventories of memory products (both DRAM and NAND flash) to their estimated market values.
For the quarter, revenues from sales of DRAM products increased by 50% compared to fourth quarter, due to 25% increase in sales volume and 21% increase in average selling price. Revenues from sales of NAND flash products increased by 21% compared to prior quarter due to 16% increase in sales volume and 5% increase in average selling price.
Steve Appleton, chairman and CEO of Micron, said: “We realise there are still challenges in the global economy, but our team members deserve a lot of credit for generating positive operating cash flow throughout the downturn. Our technology, cost competitiveness and strong balance sheet will provide a great foundation for taking advantage of improving market conditions.”
