Micron Swings to Loss, Announces Job Cuts
June 30 2016 - 5:30PM
Dow Jones News
Micron Technology Inc. swung to a loss in its latest quarter and
announced a cost-cutting plan that includes layoffs as the memory
chip maker feels the pinch of the soft demand for personal
computers.
Shares of the company, down about 27% over the past 12 months,
fell 7.3% to $12.75 in after-hours trading.
The company didn't specify how many jobs would be cut as part of
the new "cost savings" program that aims to save about $80 million
per quarter during the coming 2017 fiscal year. Micron said it
expects to incur charges of $70 million in connection to the plan,
mostly in the final quarter of fiscal 2016.
One of the world's largest memory chip makers, Micron is the
last remaining U.S. supplier of a widely used variety called
dynamic random access memory, or DRAM, a key component in personal
computers.
"Although we have made good progress in deploying our advanced
DRAM and NAND technologies, we continue to face challenging market
conditions," Micron Chief Executive Mark Durcan said.
Sales of personal computers have been under pressure. World-wide
shipments of personal computers fell in the first quarter of 2016
compared with a year earlier, the sixth consecutive quarter of
declines and the first time since 2007 that shipments dropped below
65 million units, according to research firm Gartner Inc.
For the period ended June 3, Micron reported a loss of $215
million, or a loss of 21 cents a share, down from a profit of $491
million, or 42 cents, posted a year ago.
Excluding certain items, the company posted an adjusted loss of
8 cents a share.
Revenue fell 25% to $2.9 billion.
Analysts polled by Thomson Reuters had forecast an adjusted loss
of 9 cents a share on $3 billion in revenue.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
June 30, 2016 17:15 ET (21:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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