Micron Technology has unveiled plans to idle as much as 5% of DRAM wafer begins and in addition cut back its complete NAND flash wafer begins by 5% in 2019, whereas expressing warning about gross sales efficiency in its third quarter of fiscal 2019.
Oversupply in each DRAM and NAND flash sectors led to an over 20% fall in Micron’s product ASPs through the quarter ended February 28, 2019. The firm noticed its revenues decline 26% sequentially and 21% on yr to US$5.eight billion in its fiscal second-quarter 2019, citing “worse-than-expected DRAM and NAND pricing.”
Micron noticed its DRAM revenues lower 30% sequentially and 28% from a yr earlier to account for 64% of its complete revenues within the second quarter of its fiscal 2019. The firm’s DRAM ASPs fell 21-23% on quarter, whereas bit shipments have been down by a low double-digit share.
Micron’s NAND revenues slipped 18% sequentially and a couple of% on yr to account for 30% of firm revenues within the fiscal second-quarter 2019. ASPs went down about 25% from the primary quarter, however bit shipments elevated by a excessive single-digit share, the corporate disclosed.
Looking into the fiscal third-quarter 2019, Micron expects revenues to register one other sequential drop of about 17% to US$4.6-5 billion, with gross margin sliding to 37-40% from 50% within the prior quarter.
“Micron continues to execute well across a range of product, operational and financial initiatives against the backdrop of a challenging market environment,” mentioned Micron president and CEO Sanjay Mehrotra. “These initiatives and our focus on high-value solutions, cost competitiveness and innovation will enable us to emerge even stronger as the market environment improves.”
