Tomahawk, WI 03/31/2014 (Basicsmedia) – Micron Technology, Inc. (NASDAQ:MU) stock price has increased by more than 300% since the beginning of 2013. The company has shown some great results in recent quarters.

Positive Financial Results

For 1Q2014, it reported revenues of $4.04 billion which were 42% higher than 4Q2013 and 120% higher than 1Q2013. It reported a non-GAAP net income of $881 million and EPS of $0.77.

The acquisition of Elpida meant a 69% hike in revenue from sales of DRAM products in 1Q2014 compared to 4Q2013. NAND Flash product sales revenues grew 8% in 1Q2014 compared to 4Q2013 on the back of 11% rise in sales volume which offset a slight decrease in selling prices.

For FY2013, net income was $1.19 billion with net sales of $9.1 billion and EPS of $1.13. This compares to a net loss of $1.03 billion in FY2012 with net sales of $8.2 billion.

Future Prospects

The business of DRAM chips and NAND flash memory is a growing sector. Hence, Micron should continue to keep growing in the future. However, this is a competitive sector with numerous strong competitors from South Korea, Taiwan, Japan and Europe.

Earnings Preview

The 2Q2014 earnings figures are expected on April 3 and Micron is likely to report good numbers on the back of positive trends in the core business areas of Micron which are DRAM chips and NAND flash memory.

With strong demand from its smartphone customers including Apple Inc. (NASDAQ:AAPL), and favorable pricing trends in the DRAM and NAND industry, Micron’s 2Q2014 revenue is expected to reach $3.98, according to Yahoo! Finance.

EPS is expected to be $0.74 compared to a loss of $0.28 per share a year ago.

Sector Outlook

Micron is seeing a favorable outlook for memory-chip makers for the next few quarters due to a significant reduction in inventory across the board and especially in PC and mobile segments. This should result in higher price realization for Micron in the coming quarters.

Micron Technology, Inc. (NASDAQ:MU) is increasing the production of 25-nm chips and will launch a 20-nm chip in 2Q2014. Micron claims to be ahead of its competitors to sample DDR4 chips to its customers and industry partners.

Micron is trying to increase its operational efficiency by consolidating its manufacturing to three manufacturing locations — Japan, Taiwan and Singapore — all of which have been traditionally strong in memory chip manufacturing.

Micron expects NAND Flash penetration will grow in the mobile segment as companies aim to launch ever more capable smartphones that require robust processors and memory.

Micron Technology, Inc. (NASDAQ:MU) sees great growth in the SSD market as well and it hopes to do well in this storage device market as well.

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