Despite losses Micron still after Elpida
Micron has reported a loss of $320m for the quarter to the end of May. However it says it is still proceeding with plans to buy Elpida.
Micron CEO Mark Durcan says he’ll go ahead with the purchase so long as “we do not unnecessarily dilute our equity nor incur excessive interest-bearing debt that might overly hamper our flexibility moving forward.”
Micron had $2.7bn in cash and investments at the end of the quarter.
Buying Elpida would give it DRAM market share of around 24% including a bigger share of the more profitable mobile memory market.
During the quarter, Micron acquired Intel’s 18% interest in the IM Flash operation in Singapore and purchased from IM Flash its production assets in the Micron fab in Virginia. The price for both transactions was around $600m.
Micron had revenues for the quarter of $2.2bn.