Micron Posts Wider Third Quarter Loss

Boise, ID (AHN) - Shares of Micron Technology (MU) fell 12.7 percent Friday after the chipmaker reported a larger fiscal third quarter loss than analysts expected.

Micron reported a loss of $236 million or 30 cents a share on revenue of $1.5 billion. Analysts surveyed by FactSet Research were looking for a loss of 28 cents a share on revenue of $1.47 billion.

The chipmaker said it was affected by DRAM chip and NAND flash memory product prices declining, but did note that sales for these products were up 10 percent from the previous quarter.

The company also noted its progress in cutting expenses.

"Micron continues to execute strongly on its cost reductions through advanced technology deployment and 300 millimeter manufacturing efficiencies, resulting in a positive gross margin in the third quarter," said Micron President and COO Mark Duncan, according to MarketWatch.

With the overall chip market still facing pricing pressures, analysts seem content taking a wait and see approach.

"It's tough to see how memory industry fundamentals will permit any sort of sustained upwards move; we expect the stock to be primarily event-driven near-term, and remain in a trading range around current levels," said analyst Daniel Berenbaum of Cowen and Co., according to Dow Jones Newswire.

Shares of Micron closed down 89 cents at $6.10 a share.