Micron Technology Inc (MU) has reported a 12.62 percent fall in profit for the quarter ended Dec. 01, 2016. The company has earned $180 million, or $0.16 a share in the quarter, compared with $206 million, or $0.19 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $335 million, or $0.32 a share compared with $299 million or $0.29 a share, a year ago.
Revenue during the quarter grew 18.51 percent to $3,970 million from $3,350 million in the previous year period. Gross margin for the quarter expanded 12 basis points over the previous year period to 25.47 percent. Total expenses were 90.96 percent of quarterly revenues, down from 93.07 percent for the same period last year. This has led to an improvement of 212 basis points in operating margin to 9.04 percent.
Operating income for the quarter was $359 million, compared with $232 million in the previous year period.
"Positive market momentum, driven by favorable demand trends and limited industry supply, produced solid results for our first quarter," said Micron chief executive officer Mark Durcan. "We continue to make significant progress on our key technology and product initiatives, and we are pleased to have closed the Inotera acquisition on December 6, 2016, which we expect to further improve Micron’s strategic position and financial results."
Operating cash flow improves marginally
Micron Technology Inc has generated cash of $1,138 million from operating activities during the quarter, up 1.61 percent or $18 million, when compared with the last year period.
The company has spent $890 million cash to meet investing activities during the quarter as against cash outgo of $660 million in the last year period.
The company has spent $212 million cash to carry out financing activities during the quarter as against cash outgo of $140 million in the last year period.
Working capital declines
Micron Technology Inc has witnessed a decline in the working capital over the last year. It stood at $3,958 million as at Dec. 01, 2016, down 11.75 percent or $527 million from $4,485 million on Dec. 03, 2015. Current ratio was at 1.71 as on Dec. 01, 2016, down from 2.11 on Dec. 03, 2015.
Days sales outstanding went down to 57 days for the quarter compared with 64 days for the same period last year.
Days inventory outstanding has decreased to 42 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 $9,645 million as on Dec. 01, 2016, up 30.74 percent or $2,268 million from $7,377 million on Dec. 03, 2015. Total debt was 34.65 percent of total assets as on Dec. 01, 2016, compared with 30.25 percent on Dec. 03, 2015. Debt to equity ratio was at 0.73 as on Dec. 01, 2016, up from 0.56 as on Dec. 03, 2015.
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