On Thursday, Micron Technology Inc. reported that its revenue and earnings declined in the June quarter. These declines were caused by lower selling prices.
According to D. Mark Durcan, the Chief Executive at Micron, the memory-chip maker was negatively impacted primarily as a result of weakness in the PC sector.
Based in Boise, Idaho, Micron is well known in the industry as being the maker of DRAM or Dynamic Random Access Memory, in the U.S. This DRAM is a key component in personal computers.
In 2013, Micron acquired Elpida Memory Inc. and as a result, the company became the 2nd largest DRAM producer in the world. Samsung Electronics Co. holds the number one position.
Additionally, Micron also supplies NAND flash memory chips, which are used in digital cameras, smartphones, and tablets and it is used in order to store photos.
Thanks to an increasingly wide array of products that use these memory chips as well as industry consolidation, Micron’s businesses have benefited. Despite this, the results in the last quarter were negatively impacted as a result of a decrease in the average selling prices for DRAM. This however was also partially offset by lower manufacturing costs.
For the quarter ended on the 4th of June, Micron reported a profit of 42 cents, or $491 million. This missed analysts’ expectation for a per share profit of 56 cents. This was down from a year earlier when the company reported profit of 68 cents a share, or $806 million. Excluding one-time items, earnings per share were 54 cents.
Meanwhile, revenue also declined to $3.85 billion, down 3 percent which missed analysts' expectations of $3.9 billion.
Up to the close of trading on Wednesday, the shares of Micron have declined 31% so far this year and they are currently trading at $24.02 a share.
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