2023-03-28 16:49:23 ET
Micron Technology ( NASDAQ: MU ) shares edged up by 1.5% in after-hours trading Tuesday as the memory chipmaking giant cautiously suggested inventories and business is improving after a brutal fiscal second-quarter loss.
In a statement announcing Micron's ( MU ) second-quarter results and outlook, Chief Executive Sanjay Mehrotra said he was "confident" in the company's long-term demand outlook and "we expect gradual improvements to the industry’s supply-demand balance."
For its fiscal third-quarter, Micron ( MU ) said it expected to lose between $1.51 and $1.65 a share, excluding one-time items, on revenue in a range of $3.5B to $3.9B. Micron ( MU ) said its results would include the impact of $500M in inventory writedowns during the quarter.
The company said its plans to cut 15% of its workforce were mostly complete, but would still continue through the rest of the year.
With regards to its fiscal second quarter, which ended March 2, Micron ( MU ) reported a loss, excluding one-time items, of $1.91 a share, on revenue of $3.69B. Wall Street analysts had previously forecast Micron ( MU ) to lose 88 cents a share, excluding one-time items, on $3.71B in sales. During the same period a year ago, Micron ( MU ) earned $2.14 cents a share, excluding one-time items, on revenue of $7.79B.
Micron said its second-quarter results included an inventory writedown of $1.43B, which and an impact of $1.34 a share on its earnings results.
Like many chipmakers, Micron ( MU ) has seen its results affected by issues ranging from supply chain slowdowns to declines in demand after customers boosted spending beyond traditional levels during the COVID-19 pandemic.
The company said that it believes its sales in data center products "bottomed" in Micron's ( MU ) second quarter, and it expects demand for PC and gaming chips to show signs of improving during the second half of its fiscal year.
Heading into Micron's ( MU ) results, Wall Street analysts had expressed mixed sentiment about the company's prospects through the rest of the year .
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Micron gets a slight lift as chipmaker is 'confident' about long-term outlook