Micron ends fiscal Q2 with debt of $1.13 billion, eyes improvements in second half of 2016

By Lisa Kerner

Charlotte, N.C., March 30 – Micron Technology, Inc.’s second-quarter fiscal 2016 margins were impacted by continued weakness in the PC market, seasonality and the timing of product launches in other segments, according to chief executive officer Mark Durcan.

Gross margin of 20%, or $579 million, was at the high end of guidance.

Durcan made his comments during the company’s quarterly earnings call on Wednesday.

“Although we continue to navigate challenging market conditions, we are on track with deploying our advanced DRAM and NAND technologies and improving our cost structure,” Durcan said.

As a result, Micron expects to “significantly improve” its competitive position through the second half of 2016 and beyond.

Micron ended the quarter on March 3 with cash and short-term investments of $4 billion and current debt of $1.13 billion. This compares to $3.6 billion and $1.05 billion at Dec. 3, according to the earnings presentation.

Cash provided by operations totaled $763 million for the quarter, versus $1.12 billion for the first quarter.

Revenues were down 12% sequentially at $2.93 billion, and 30% lower year over year, according to the earnings release.

The net loss attributable to Micron shareholders for the second quarter was $97 million, or ($0.09) per diluted share, on a GAAP basis, compared to net income of $206 million, or $0.19 per diluted share, for the first quarter of fiscal 2016.

Micron is a Boise, Idaho-based semiconductor manufacturer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.