Multiple Reasons To Invest In Micron

Micron Technology (MU) announced its fourth quarter financial results. For the fourth quarter, it reported net loss attributable to $243 million, or $0.24 diluted per share. This is an improvement from the previous year’s results of net loss of $320 million, or $0.24 diluted per share. But, this is slightly lower than market expectations of a fourth quarter loss of $0.22 per share.

This brings the full year 2012 net loss to $1.03 billion, or $0.14 diluted share. This is a reversal from fiscal year 2011 net income of $167 million, or $0.17 diluted earnings per share. The slower than expected performance is attributed to the difficult market conditions and lower selling prices.

Revenues amounted to $8.26 billion, a slight decline from the previous year’s revenues of $8.78 billion. The decline in revenues was mainly due to lower DRAM and NAND shipments and flat average selling prices. Operating loss reached $618 million, also a reversal from last fiscal year’s $755 million. If you look at its 10-year record, this seems normal as the semiconductor company has experienced peaks and troughs. On the average, revenues have grown by 8% for the last 10 years. Its operating margins have turned positive from negative 39.6% in 2002 to operating margins of 8.6% in 2011.

Semiconductor Manufacturing International (SMI) experienced revenue decline of 2.08% for the last 5 years. This translates to negative operating margins of 14.5%. Taiwan Semiconductor Manufacturing (TSM) posted revenue growth of 12.60% for the last 10 years. Operating margins have averaged 30% for the same period. For the last 10 years, the industry has seen big changes. It has been the main driver of the technological advances. To continue reading, click here.

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