It looks like the PC downturn is coming to a close. Memory chipmaker Micron Technology posted fiscal third-quarter results above expectations. It said that pent up demand for personal computers is bolstering demand for its DRAM chips. It is the first time the outfit has offered a quarterly revenue forecast, which also exceeded analysts' estimates.
Micron President Mark Adams said on a conference call with analysts that corporates were needing to refresh desktops and notebooks and this was leading to better-than-expected sector performance. He said that recent industry consolidation is putting an end to extreme price volatility that in difficult years has left larger companies losing money and driven smaller players out of business.
Micron's quarterly results include bankrupt Japanese DRAM maker Elpida Memory, which the U.S. chipmaker acquired in July 2013 in a bid to improve economies of scale. Micron said its revenue jumped 72 percent to $3.98 billion in the third quarter, which ended in May. Analysts on average expected revenue of $3.89 billion.
Micron reported a net profit of $806 million, compared with a net profit of $43 million. Micron forecast revenue for the current quarter between $4 billion and $4.2 billion. Analysts had expected fourth-quarter revenue of about $4.06 billion.