Thursday, December 21, 2006

Quick Comment on Micron (NYSE:MU)

Micron (NYSE:MU) is out with the numbers. Quick look at the numbers shows mixed bag of positives and negatives, but at least for me, positives are outweighting the negatives.

1) EPS way above expectations on strong gross margins - don't think that anybody expected margins as high as 31%.
2) NAND doing well, 15% revs coming from NAND according to the co - up from <10% in the previous quarters. Lexar sure helped, but the worst fears didn't come true for sure. And co is even telling that NAND margins improved!!
3) CMOS margins maintained - that is sure good thing in light of what OVTI was telling us.

1) Revenue. Looks like the co was concentrating on margins on the expense of revenue.
2) Inventories increased another ~$150m. That is a cause for concern.

As said, more positives than negatives. Expecting the stock to go higher tomorrow than the current $14.15 in the afterhours.

No comments: