Micron just announced its fiscal Q2 2011 earnings and the company appears to be holding up well. Revenues for the quarter (which spans December 2010 thru February 2011) were essentially flat Q/Q at $2.26 billion (as compared to $2.25 billion in the prior quarter). DRAM ASPs were down significantly for the quarter (-23%), most of this Q/Q decline likely came in December when prices dropped precipitously – pricing has been fairly firm since then.
This was the first quarter that Micron reported revenue by business unit. Revenue from DRAM Services Group (DSG) was $841 million. Micron also earned DRAM revenue in its Wireless and Embedded groups, but did not break out the DRAM total therein. All business units earned positive operating income although there was an operating loss in “Other”.
The company managed to earn a net income during the quarter ($72 million). This is the first time, in a long time, that the company has earned a net income during a down market (although this down market is coming off a rather healthy up market and the down hasn’t been too severe). The general tenor of the call was upbeat and optimistic – which is highly reflective of the near-term prospects for the DRAM market in general.
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