Citing slow PC sales and softness in the DRAM market, Micron Electronics Inc. (stock: MUEI) Wednesday reported an 89% drop in earnings for its fiscal 2001 first quarter.
Micron posted a profit of $1.6 million, or 2 cents a diluted share, compared with profit of $14.6 million, or 15 cents a share, a year ago. The consensus earnings estimate among financial analysts surveyed by First Call was 2 cents a share. Micron?s first-quarter revenue came in at $404 million, compared with $353 million a year earlier.
"Memory is a big part of Micron?s business, and that market is very soft right now," says Brooks Gray, a Technology Business Research analyst. Micron?s PC business reported marginal earnings growth, with net sales at $275 million, compared to $260 million a year ago. Net sales of the company?s SpecTek memory products were $118 million, compared with $90 million one year ago.
Micron issued a statement bemoaning "a very tough quarter for both the PC and DRAM industries." Meanwhile, Micron reported that net sales from its HostPro hosting and Internet service provider business grew to $13.5 million, compared with $4.1 million a year ago.