Micron sales are down by almost 50% and the drop is expected to get worse as layoffs plan
Revenue of Micron Technology Inc. fell 47% in the first fiscal quarter, and management predicts that the drop will be even worse than 50% in the second quarter as layoffs are planned.
reported a loss of $195 million, or 18 cents a share, compared with net income of $2.31 billion, or $2.04 a share, for the year-ago period. Adjusted loss, excluding stock-based compensation and others, was 4 cents a share, compared with adjusted earnings of $2.18 per share for the year-ago period. .
Revenue fell to $4.09 billion from $7.69 billion in the previous quarter. Analysts surveyed by FactSet had forecast an adjusted loss of 2 cents a share on revenue of $4.13 billion..
For its fiscal second quarter, Micron said it expects an adjusted loss of 72 cents to 52 cents a share on revenue between $3.6 billion and $4 billion, with a lower average. 51% from last year’s total second-quarter revenue of $7.78 billion. Analysts had forecast an adjusted loss of 32 cents a share on revenue of $3.92 billion.
In a filing with the Securities and Exchange Commission, the memory chip specialist revealed that management plans to cut about 10% of staff by 2023, “through a combination of staff cuts and voluntary consumption”. About $30 million in restructuring costs are expected, all in the second fiscal quarter.
Sanjay Mehrotra, chief executive officer of Micron, said: “Micron’s strong financial, manufacturing and technological position gives us a strong foundation to navigate the short-term environment, and we are taking steps to build on them. act decisively to cut its supply and costs.” “We expect the improvement in customer inventory to help boost revenue in the second half of the fiscal year and deliver strong profitability as we weather this downturn.”
Micron specializes in DRAM, or dynamic random access memory, the type of memory commonly used in PCs and servers, as well as NAND chips, which are flash memory chips used in smaller devices such as smartphones. smart phone and USB drive.
Shares of Micron fell less than 1% in hours, after gaining 1% to close the regular session at $51.19. Micron stock is down 45% for the year compared to a 19% drop for the S&P 500
and down 32% by the Nasdaq Composite Index
and 33% off the PHLX Semiconductor Index