Micron Ends Year with a Whimper, Posts $706 Million Loss

Posted 12/24/2008 at 9:02am | by Paul Lilly

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Micron Technology knows as well as anyone just how bad the memory market has become. For the eight-straight time, the Boise, Idaho-based memory maker posted a loss as it struggles to cope with declining chip prices. But despite the company's best efforts, Micron posted a net loss of $706 million, or 91 cents per diluted share, for the quarter ended December 4, 2008.

While the loss itself doesn't come as a surprise, the total amount does. Analysts surveyed by Bloomberg were expecting Micron to post a loss of 45 cents per share, but slumping prices continues to take its toll. Prices for DRAM and NAND flash memory have fallen 34 percent and 24 percent respectively, Cnet reports, and relief doesn't appear to be on the way anytime soon as memory companies look to cut production.

"The rate at which capacity comes back online will be determined by what the demand profile is through the first half of '09," Micron CEO Steve Appleton said during a conference call. "If you talk to the equipment guys, they will tell you that they may not have any business in '09 in certain categories."

Earlier this year, Micron announced plans to cut 15 percent of its global workforce as part of a two-year restructuring plan.

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