Micron Technology's Profit Declines More Than Expected

Memory chip maker Micron Technology Inc. reported on Thursday a fiscal third-quarter profit that declined to $491 million, or 42 cents a share, from $806 million, or 68 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share for the quarter ended June 4 came in at 54 cents, compared with the FactSet consensus of 57 cents. Sales fell 3% to $3.85 billion, just shy of the FactSet consensus of $3.9 billion, with DRAM average selling prices declining 10% and DRAM sales volume relatively flat. "In the fiscal third quarter, Micron experienced market headwinds driven primarily by weakness in the PC sector," said Chief Executive D. Mark Durcan. "We remain focused on the long term as we continue to deploy advanced process technology to enable leading-edge products and drive manufacturing efficiency." The stock, which rose 1.2% in after-hours trade, has tumbled 31% year to date through Thursday, while the S&P 500 has gained 2.1%.