Micron Tech Profit In Line, Revenue Beats Estimate

(RTTNews) - Memory chip maker Micron Technology Inc (MU), Thursday reported a drop in fourth-quarter profit even as sales surged, reflecting the absence of one-time gains recorded last year. Adjusted earnings were in line with Wall Street estimates, while revenue surpassed expectations.

"Continued favorable market conditions and steady execution led to increases in sales volumes and another quarter of strong operating margins and earnings per share," said Mark Durcan, the company's chief executive officer.

Micron shares gained about 4 percent in after-hours trade on the Nasdaq.

Micron makes dynamic random access memory (DRAM) and NAND flash memory chips. The chips provide memory storage and retrieval for electronic devices such as personal computers and MP3 players. Micron competes with major players including Samsung.

Micron, based in Boise, Idaho, reported quarterly net earnings of $1.15 billion or $0.96 per share, compared with $1.71 billion or $1.51 per share last year.

Results for the 2014 quarter included a charge of $233 million over a litigation settlement with Rambus Inc, and a $119 million gain from its stake in Aptina Imaging Corp.

Results for the prior year included a gain of $1.48 billion, or $1.31 per share, related to the acquisition of Elpida Memory Inc and Rexchip Electronics Corp.

Excluding items, adjusted earnings for the quarter were $0.82 per share, compared with $0.20 per share a year ago.

On average, 20 analysts polled by Thomson Reuters expected earnings of $0.81 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter rose 49 percent to $4.23 billion from $2.84 billion a year ago. Twenty-nine analysts had a consensus revenue estimate of $4.15 billion for the quarter.

Micron stock closed Thursday at $31.70, down $0.52 or 1.61%, on a volume of 30.3 million shares on the Nasdaq. In after hours, the stock gained $1.11 or 3.50% at $32.81.