Chip Maker Micron Loses $316 Million

The Idaho-based company on Tuesday reported a net loss of 52 cents a share on sales of $685.1 million for the September-through-November quarter. That compared to a net loss of $265.9 million, or 44 cents a share, on revenue of $423.9 million a year earlier.

Wall Street analysts surveyed by Thomson First Call had expected a loss of 23 cents per share.

Micron closed at $13.28 a share, down 21 cents, on the New York Stock Exchange. Shares plunged nearly 9 percent in extended trading, or $1.18. The results were issued after the close of regular trading.

It was the eighth consecutive quarter of red ink for Micron, which has claimed it is being victimized by unfair marketing by South Korean competitors.

Last Friday, the International Trade Commission preliminarily determined that those imports injured U.S. chip manufacturers. The Commerce Department reached a similar conclusion in November.

"We are pleased the ITC and Department of Commerce have decided to move forward in their respective investigations,' Micron Chairman Steve Appleton said in a release. "We believe it is clear there has been inappropriate government subsidization of the Korean DRAM industry.'

The South Korean companies have denied any unfair practices.

Micron reported writing down $91 million in inventory during its first quarter, another $174 million for the fourth quarter last year and $173 million for the first quarter of 2002.

While sales were up 61 percent from a year earlier, the company reported an 8 percent decline from the last quarter of 2002 at the same time the average selling prices per megabit were off 12 percent.

By the end of November, Micron said it had converted about 40 percent of its worldwide production to a .13-micron line-width process, and it expects to complete the transition to stack technology at its Manassas, Va., plant early next year.

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