Micron’s net loss for Q3 expanded to $236 million, or $0.30 a share, from $225 million a year ago.
On average, analysts had been expecting a net loss of $0.29 a share.
Sales Prices Decline
The bottom line was hurt by sales prices, with average sales prices for
computer memory chips declining by 5% and average sales prices for portable device chips down 20%. One analyst said that the prices of memory chips are so low that Micron is subsidizing consumers by selling them. Worse, Asian competitors such as Samsung continue to flood the market with new supply.
Micron, which has about $1.6 billion in cash, has its own plans for
expansion. The company said it will spend $2.5-3 billion on plant and equipment in fiscal 2008.