Micron expects $5.75 bn revenue in current quarter

Chipmaker Micron Technology said its revenue rose 13.6 percent to $5.44 billion for its third quarter ended May 28.
Micron TechnologyThe chipmaker expects revenue in the current fourth quarter to be between $5.75 billion and $6.25 billion.

Micron Technology forecast current-quarter revenue above Wall Street estimates as home-bound employees and students spur demand for its chips that power notebooks and data centers.

The work-from-home boom has driven demand for data center chips, with Micron, one of the biggest DRAM chip suppliers, working to sell more profitable solid-state storage drives rather than the raw NAND memory chips that go into the drives.

The company on Monday said sales of the drives hit a record in its fiscal third-quarter and that three-quarters of its NAND chips were sold as part of higher-value products rather than raw chips.

Micron said it expects consumer demand for smartphones and other consumer electronics to fall below its initial expectations in the second half of 2020, but data center demand is strong enough that supply shortages are emerging.

The company said it plans to shift its supplies from the smart phone market to the data center market, for both DRAM and flash memory chips.

The company also said its factories were operating normally again after some interruptions when lockdown orders hit and that it has taken some chip assembly functions in-house that previously were performed by contractors.

“Proximity to existing sites just makes it easier to de-bug issues that may come up as we bring up some of these products to high-volume manufacturing,” Sumit Sadana, Micron’s chief business officer, told Reuters.