Micron Technology (MU) Tops Q3 EPS by 1c; Will Implement Restructuring Plan

June 30, 2016 4:03 PM EDT

Micron Technology (NASDAQ: MU) reported Q3 EPS of ($0.08), $0.01 better than the analyst estimate of ($0.09). Revenue for the quarter came in at $2.9 billion versus the consensus estimate of $2.96 billion.

"Although we have made good progress in deploying our advanced DRAM and NAND technologies, we continue to face challenging market conditions," said Micron CEO Mark Durcan. "To address the current market environment and strengthen our competitive position, we are implementing a number of initiatives to reduce costs, drive greater efficiencies, and increase focus on our strategic priorities."

The initiatives, which include a global workforce reduction, are expected to save the company over $300 million in fiscal 2017.

Revenues for the third quarter of fiscal 2016 were slightly lower compared to the second quarter of fiscal 2016 as increases in sales of DRAM products were offset by decreases in sales of trade Non-Volatile products. DRAM revenues increased in the third quarter of fiscal 2016 as a result of a 22 percent increase in unit sales partially offset by an 11 percent decline in average selling prices. Sales of trade Non-Volatile products decreased due to a 10 percent decrease in units sales and a six percent decline in average selling prices. The company's overall consolidated gross margin of 17 percent for the third quarter of fiscal 2016 was three percent lower compared to the second quarter primarily due to lower average selling prices partially offset by manufacturing cost reductions.


Micron sees Q4 adjusted loss of $0.24 - $0.16 per share and revenue of $2.9 - $3.2 billion. The Street sees Q4 EPS of $0.04 and revenue of $3.2 billion.

For earnings history and earnings-related data on Micron Technology (MU) click here.

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