Micron Tech Reports Loss as Chip Prices Plunge

Micron Technology Inc. (MU) the world's third largest maker of computer memory chips, Thursday reported its largest quarterly loss in two years as a glut of chips pushed average prices down 30 percent.

Micron shares declined more than 2 percent in after-hours trading on Inet.

The loss in the fiscal third quarter ended June 2 was $127.9 million, or 20 cents a share, compared to a year-earlier profit of $90.9 million, or 13 cents a share. Sales reached $1.05 billion from $1.12 billion in the same period last year.

Analysts, on average, had been expecting results in a range of a loss of 17 cents to a profit of 37 cents, with sales in a range of $1.02 billion to $1.37 billion.

The loss breaks a string of four-consecutive quarterly profits for Micron, and is the largest loss since the fiscal third quarter of 2003.