Micron makes loss but Elpida hunt still on
Micron, still locked in a battle to buy Elpida of Japan, made a loss of $243m in in the three months to the end of August. it’s Micron’s fifth loss-maiking quarter in a row.
Despite Elpida’s problems, there have been no cuts in production in the DRAM industry which would help stabilise prices, said Micron president Mark Adams. Nor have the industry’s capex plans been trimmed, he said.
Micron’s sales of DRAM fell 12% quarter-on-quarter and NAND sales fell 9% q-o-q. Micron’s revenues for the quarter were $1.96bn – down from $2.14bn in the same quarter a year ago.
Adams said he still expected Micron’s cash bid of $750m for Elpida to succeed. What is holding up conclusion of the deal is objections from Elpida’s bondholders.
Micron has about $2bn in cash.