Micron's accountants said that there would be a first-quarter adjusted profit of 13-21 cents per share, while analysts were expecting a profit of only nine cents. This means that the company has made its first profit in three quarters.
The maker of DRAM chips used in PCs and NAND flash memory chips has enjoyed a recovery in the last six months as the PC market picks up. Micron CEO Mark Durcan said:
"We are seeing improving market conditions in terms of both slowing supply growth and improving demand across a number of key segments,"
With DRAM prices rebounding to seven month highs, Micron is seeing the supply glut in the market has dried up following aggressive cut backs in production amid signs of a bounce back in demand.
Prices of both DRAM and NAND chips are expected to rise in the fourth quarter. The latest quarter included a $58 million charge related to a restructuring program the company announced in the third quarter. Micron's net sales fell 10.6 percent to $3.22 billion in the fourth quarter. Analysts on average were expecting revenue of $3.15 billion.