14 DAY TRIAL // Micron announced a few days ago results of operations for its first quarter of fiscal 2009, which ended on December 4, 2008. As the results show, the company registered net sales of $1.4 billion and posted a net loss of $706 million, which translates into $0.91 per diluted share. Micron generated $359 million in cash flow from operating activities in the first quarter of fiscal year 2009, while ending the quarter with cash and investments of $1.0 billion.
The firm announced in the first quarter of fiscal 2009 sales decreased by 4 percent compared to the previous quarter, driven by the significantly lower selling prices for its products. The company registered 35 percent and 40 percent sales increase for DRAM and NAND Flash products measured in gigabits. The sales outpaced production during the first quarter and ended in a 15 percent decrease in gigabits of Micron’s finished goods inventories during the quarter. The DRAM and NAND Flash products registered average selling prices lower by 34 percent and 24 percent, respectively.
The gross margin decreased during the first quarter due to the fact that average selling prices for memory products went down at a rate higher than the decrease rate registered in costs. Compared to the fourth quarter, the costs per gigabit decreased by 12 percent and 14 percent for DRAM and NAND Flash products, respectively. The company managed to reduce operating costs in nearly all areas through cost-cutting and restructuring activities, which also helped its cash flow from operating activities in the first quarter.
The company registered relatively stable sales of CMOS image sensors in the first quarter of fiscal 2009 compared to Q4 2008. The sales of imaging products also resulted in a relatively stable gross margin compared to the fourth quarter, yet the cost per part registered a small decrease.