Keeping with the recent trend of tech companies posting dismal earning (with the exception of EMC and Pure Storage), Micron has reported its second quarter earnings ending on March 3rd with results echoing those that we’ve seen recently. Micron revenue was $2.93 billion down 12% from $3.35 billion in the first quarter and down 30% from the same time last year, $4.167 billion.
Keeping with the recent trend of tech companies posting dismal earning (with the exception of EMC and Pure Storage), Micron has reported its second quarter earnings ending on March 3rd with results echoing those that we’ve seen recently. Micron revenue was $2.93 billion down 12% from $3.35 billion in the first quarter and down 30% from the same time last year, $4.167 billion.
Image courtesy of Yahoo Finance
Micron points to a challenging market for the reason behind the revenue decline along with the 10% declines in both DRAM average selling prices and sales volume. This decline in DRAM prices and sales are coupled with the 6% decline in NAND average selling prices, partially offset by a sales volume increase. The overall PC market has been weak, which in turn could hurt Micron sales of client drives such as the M600.
Revenue wasn’t the only number that stood out as bad news for Micron. The company saw their net income go from $934 million at this time last year down to a net loss of $97 million, over a billion dollar difference. Micron saw a GAAP loss per share of $0.09 this quarter compared to $0.19 per share income last quarter. Its non-GAAP showed a loss of $0.05 per share.
It’s not all bad news for Micron. Their stock initially took a hit from the earnings report only to rally over the next two days of trading. Micron’s CEO, Mark Durcan, states the company is on track to deploy its advanced DRAM and NAND technologies and improve its costs structure. Durcan believes the company will see significant improvement in the second half of 2016. Micron is also sampling Tier 1 OEMs with its new 3D NAND-enabled PCIe NVMe client SSDs. Over the next two quarters Micron plans to ship Crucial-branded, low-cost 3D NAND Client SSDs targeted at gaming enthusiasts as well as a 2TB client OEM drive.
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