09.27.2001
Micron announces worse than expected 4Q result

• Development: Micron, world’s No.2 DRAM play, reported net income loss of US$576m in 4Q01. Market sentiment expected a US$0.34 loss per share, however shares plunged US$0.96 with the stock closing down 18.7% yesterday on the Nasdaq.

• Analysis: In 4Q00, Micron reported net income of US$727m, US$1.2 per share. The poor 4Q01 result is largely due to DRAM oversupply and weak global economic conditions. Oversupply continues to persist as DRAM makers are producing at 100% capacity.

• Primasia View: We believe the DRAM sector still has a long way to go before signs of recovery emerge.