(Adds comments from president, industry context)
By Noel Randewich
SAN FRANCISCO, June 23 Memory chipmaker Micron
Technology Inc posted fiscal third-quarter results above
expectations and said pent up demand for personal computers is
bolstering demand for its DRAM chips.
For the first time, the U.S.-chipmaker offered a quarterly
revenue forecast, which also exceeded analysts' estimates. But
the company's recently high-flying stock was marginally lower in
after hours trade.
Micron said better-than-expected demand for personal
computers was helping DRAM sales and that pricing for NAND chips
was relatively stable.
"Pent-up demand for corporate refresh on desktops and
notebooks seem to be leading to better-than-expected sector
performance," Micron President Mark Adams said on a conference
call with analysts. "PC DRAM pricing is improving."
Boise, Idaho-based Micron and some on Wall Street believe
that recent industry consolidation is putting an end to extreme
price volatility that in difficult years has left larger
companies losing money and driven smaller players out of
A more stable memory chip industry has made it possible for
Micron to begin providing quarterly revenue forecasts to Wall
Street, Adams later told Reuters in an interview.
"It's stabilizing not just in terms of industry structure
but because the end markets are more diversified, and that
diversification tends to cloud out the major swings we saw in
the past," Adams said.
Micron's quarterly results include bankrupt Japanese DRAM
maker Elpida Memory, which the U.S. chipmaker acquired in July
2013 in a bid to improve economies of scale.
Its stock has surged more than 33 percent in the past three
months, helped by optimism about strong and stable prices for
Micron said in a statement on Monday its revenue jumped 72
percent to $3.98 billion in the third quarter, which ended in
May. Analysts on average expected revenue of $3.89 billion,
according to Thomson Reuters I/B/E/S.
Micron reported a net profit of $806 million, or 68 cents
per share, compared with a net profit of $43 million, or 4
cents, a year earlier.
Excluding items, Micron earned 79 cents per share. Analysts
on average expected third-quarter earnings of 70 cents per
Micron forecast revenue for the current quarter between $4
billion and $4.2 billion. Analysts had expected fourth-quarter
revenue of about $4.06 billion.
Shares of Micron were down 0.4 percent in extended trade
after closing down 1.85 percent at $31.26 on Nasdaq.
(Reporting by Noel Randewich; Editing by Lisa Shumaker, Bernard