Article Abstract:
Micron Technology Inc's slipping profits reveals dangers for a small company in the volatile semiconductor chip industry. Micron's net income dropped 63 percent to $16 million in 4th qtr ended Aug 31, 1989, down from $43.3 million in 1988. Micron's stock closed at $13, down 87.5 cents on over-the-counter trading. Earnings have slipped for Micron since Sept 1988, and will fall further in the following quarters, according to analysts, because the electronics market is slowing and chip prices are falling. Micron's speciality is dynamic random access memory (DRAMs), a product that kept them afloat during the semiconductor recessing of the mid-1980's. But Dynamic random access memory (DRAMS) prices are falling too, more quickly than chip prices, and Micron is trying to protect itself by diversifying into other types of memories.
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Article Abstract:
Cypress Semiconductor Inc resumes an upward profit surge. The company expects to report net income of $8.3 million, or 22 cents a share, for the 1st qtr ended Apr 2, 1990, up 16 percent from $7.1 million, or 19 cents a share, from a year earlier. The company's 1st qtr sales were $52.8 million, up 14 percent from $46.2 million in the year-earlier period. Cypress has made a success of itself targeting niche markets that larger companies have ignored and making a variety of high-performance chips. Cypress's rebound mirrors an overall improvement in the semiconductor industry.
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Article Abstract:
Micro Technology Inc's 1st qtr profits will be $40,000; the break even point for the chip maker. Stock dividends will be zero cents for the 1st qtr ended Nov 30, 1989. The semiconductor company blames declining prices for DRAMs, which account for 80 percent of Micron's product line. In 1989, DRAM prices have fallen by 50 percent. Micron has also been adversely affected by its inability to get a 1Mbyte DRAM on the market. The 1Mbyte DRAM is the current generation of DRAM technology; Micron has 70 percent of its DRAM business in 256Kbyte chips.
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