Memory prices are likely to tick up in the near future, DRAM giant Micron Technology said yesterday as it reported its full year results.
The Boise, Idaho-based vendor said it had already seen prices tick up since the start of its current quarter, and expects a further upwards movement in the near future. Company executives also said it sees supply and demand being relatively balanced at this time and doesn’t expect any dramatic change in the market in the current quarter.
Micron turned in revenues of $1.2bn for the quarter ending September 2, up 33.8% on the year. Operating income was $125.4m, compared to a $105.6m loss a year ago, while net income was $93.5m, compared to a $123.2m loss last year.
For the full year, revenues were $4.4bn, up 42.5%. Operating income was $249.7m for the year, compared to 2003’s $1.2bn loss, while net income was $157.2m, compared to last year’s $1.3bn loss.
Chip vendors have had a difficult couple of months, with concerns that the recovery in silicon sales could be reaching a plateau.
However, Micron said it saw PC sales behaving as expected, and moving according to seasonal patterns. It said it was seeing sufficient demand for its consumer and communications products.
We don’t anticipate any particular changes in the current quarter, said executives.
The DRAM industry has been under scrutiny from the US Department of Justice, which has been investigating alleged price-fixing in the industry. Rival vendor Infineon Technologies recently agreed to pay a $160m fine to the agency, and agreed to help in further investigations of other vendors.
However, Micron executives were unequivocal that the firm would not see any negative consequences from the investigation.
We don’t anticipate any charges or penalties against the company from the Department of Justice, execs said.