U.S. memory chip maker Micron Technology Inc. (Boise, Idaho) made a net profit of $358 million on sales revenue of $4.04 billion in its first fiscal quarter of 2014, which ended on Nov. 28, 2013.
The profit was down sequentially f$1.71 billion made in the previous quarter although that extreme profit was largely due to one-time gains from the acquisition of Japan's Elpida Memory Inc. and Rexchip Corp. In the year-ago quarter Micron made a loss of $275 million.
The acquisition of Elpida also had a dramatic impact on Micron sales revenue figures and helped the company achieve record quarterly sales. The $4 billion of sales achieved in the F1Q14 was more than double what the company recorded in the same quarter a year before and up by 42 percent sequentially.
Revenues from sales of DRAM products were 69 percent higher in the first quarter of fiscal 2014 compared to the fourth quarter of fiscal 2013 due primarily to an increase in sales volume resulting from the acquisition of Elpida. Revenues from sales of NAND Flash products were 8 percent higher in the first quarter of fiscal 2014 compared to the fourth quarter of fiscal 2013 primarily due to an 11 percent increase in sales volume offset by a slight decrease in average selling prices.
Micron is also thought to have benefited from reduced output at the Wuxi wafer fab of SK Hynix during the quarter, which was affected by a fire in September 2013. This has reduced industry output allowing prices to stay firm and has diverted some orders to Micron although that benefit is likely to have now worked through.
Cash flows from operations for the first quarter of fiscal 2014 were $1.51 billion, while investments in capital expenditures were $669 million. The company ended the first fiscal quarter with cash and marketable investments of $4.41 billion.
In a conference call with analysts held to discuss the financial results Mark Durcan, Micron CEO, said that capital expenditure for the 2014 fiscal year remained as it had previously been given, at between $2.6 billion and $3.2 billion.
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