Micron Technology, Inc. (MU), a global leader in advanced semiconductor systems, has reported a 39.08 percent plunge in profit for the quarter ended Jun. 04, 2015. The company has earned $491 million, or $0.42 a share in the quarter, compared with $806 million, or $0.68 a share for the same period last year. On an adjusted basis, the company has earned $620 million, or $0.54 a share for the quarter. Revenue during the quarter dropped 3.24 percent to $3,853 million from $3,982 million in the previous year period. Gross margin for the quarter contracted 316 basis points over the previous year period to 31.20 percent. Total expenses were 83.62 percent of quarterly revenues, up from 78.93 percent for the same period last year. That has resulted in a contraction of 469 basis points in operating margin to 16.38 percent.
Operating income for the quarter was $631 million, compared with $839 million in the previous year period.
"In the fiscal third quarter, Micron experienced market headwinds driven primarily by weakness in the PC sector," stated D. Mark Durcan, chief executive officer. "We remain focused on the long term as we continue to deploy advanced process technology to enable leading-edge products and drive manufacturing efficiency."
Operating cash flow falls marginally
Micron Technology, Inc., has generated cash of $4,178 million from operating activities during the nine month period, down 4 percent or $174 million, when compared with the last year period.
The company has spent $4,722 million cash to meet investing activities during the nine month period as against cash outgo of $1,204 million in the last year period.
Cash flow from financing activities was $215 million for the nine month period as against cash outgo of $1,953 million in the last year period.
Working capital increases
Micron Technology, Inc., has recorded an increase in the working capital over the last year. It stood at $5,442 million as at Jun. 04, 2015, up 10.05 percent or $497 million from $4,945 million on May 29, 2014. Current ratio was at 2.19 as on Jun. 04, 2015, up from 2.04 on May 29, 2014.
Days sales outstanding were almost stable at 62 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 82 days for the quarter compared with 87 days for the previous year period.
Debt increases substantially
Micron Technology, Inc., has witnessed an increase in total debt over the last one year. It stood at $7,551 million as on Jun. 04, 2015, up 33.76 percent or $1,906 million from $5,645 million on May 29, 2014. Total debt was 30.04 percent of total assets as on Jun. 04, 2015, compared with 27.54 percent on May 29, 2014. Debt to equity ratio was at 0.57 as on Jun. 04, 2015, up from 0.53 as on May 29, 2014.
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