Boston, MA 01/08/2013 (wallstreetpr) – Micron Technology, Inc. (NASDAQ:MU) has managed to beat the analysts’ expectation again with its quarterly results. Micron has been having a good time recently on the back of its acquisition of Elpida as well as supply issues in its major DRAM segment.
The Quarterly Results
Investors were expecting such good results from the company as the stock had climbed by more than 5% yesterday during normal trade. The quarterly results were declared after market close. Revenues of $4.04 billion beat analysts’ expectations of $3.72 billion. The revenues were 42% higher than the last quarter. The company had reported revenues of $1.83 billion in the comparable first quarter of 2013. The first quarter earnings of $0.77 per share were also higher than the analysts’ expectation of $0.44 per share. The overall gross margins of 32% were an improvement over 12% reported in the first quarter of 2013. This improvement was driven by the acquisition of Elpida, higher average selling prices as well as manufacturing cost reductions.
Other significant news
Though the acquisition of Elpida for $615 million is now old news, the investment appears to have started paying off. Micron Technology, Inc. (NASDAQ:MU) had also acquired a 24% ownership interest in Rexchip Electronics Corp for $334 million in cash in the same month. With the 65% ownership of Rexchip by Elpida also under its belt, Micron now has 89% ownership of the company. This was followed by the agreement reached between Micron and Rambus Inc. (NASDAQ:RMBS) to settle all their pending legal disputes over patents and to work on royalty basis. The deal valued at $40 million will allow Micron unlimited access of patents developed by Rambus for a period of seven years. The old pending legal issues between Rambus and Micron, including Elpida, will be covered under the agreement and would stand resolved.
The aggressive moves by Micron have been well accepted by the markets.
