Micron Electronics Reports Anticipated Poor Q2 Numbers.PC direct marketer Micron Electronics Inc has reported second- quarter results in line with its earlier warning and revised Wall Street expectations. The Nampa Nampa (năm`pə), city (1990 pop. 28,365), Canyon co., SW Idaho, in the fertile Treasure Valley; inc. 1890. It is the commercial, processing, and shipping center for an irrigated agricultural, orchard, and dairy region. , Idaho-based company posted net income of $4.2m on revenue down 24.5% at $373.6m, compared to net income of $24.8m in the year-ago period. Earnings per share fell to $0.04 from $0.26 for the quarter. Results for the quarter include a restructuring charge restructuring chargeThe expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $3.9m, or $0.03 per share, related to the closure of the company's Japanese operation. Results for the year-ago quarter include gain of $156.2m on the sale of the contract manufacturing business. Six-month net income fell 38.7% to $15.8m on revenue down 26.2% at $777.1m. Earnings per share dropped 40.7% to $0.16 for the six months. The results echoed the company's earlier warning that the second quarter would suffer a 7% sequential revenue decline due to an anticipated seasonal slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the strategic government segment; continued industry pricing pressure in its consumer business and purchase deferrals from the early promotion and late-quarter timing of Intel's Pentium III The successor to the Pentium II from Intel. Introduced in the spring of 1999 at 500 MHz, the Pentium III architecture was similar to the Pentium II with the addition of 70 new instructions optimized for multimedia (see SSE). processor introduction. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of PC systems declined in the quarter as a result of a 14% decrease in unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. which was partially offset by a 4% increase in average selling prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. . On the bright side, Micron said it saw solid growth in its mid-market commercial PC business with second fiscal quarter sales increasing by more than 20% over the first quarter. And sales of SpecTek semiconductor memory products were 27% higher sequentially. Gross margin for the quarter was 17.0%, compared to the 17.1% in the first quarter and 0.9% in the second quarter of fiscal 1998. PC gross margins, meanwhile, were 13.8%, compared to 15.0% in the first quarter and a negative 1.6% in the year-ago quarter. SpecTek's margin was 37.7%, compared to 36.4% and 15.9%, respectively. Selling, general and administrative expenses for the quarter rose $3.8m sequentially to $56.2m due to field sales force expansion, seasonally higher service and support costs in the consumer segment, and higher advertising expenses in conjunction with the early promotion of the Pentium III. |
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