Micron hit by weak pc sales, shares fall

The memory chipmaker reported revenue of $2.14billion and earnings per share of $0.07. Analysts had been expecting it to report $2.36bn in revenue and $0.16 in earnings per share. DRAM sales for the US firm fell by 7% from Q2 on lower volume. NAND flash memory sales also dropped by 5%, as average selling price declined by 5%. Mark Adams, Micron's vice president of worldwide sales, told analysts on a conference call: "We've all seen a softening of the desktop and notebook pc climate, partially offset by some growth around tablets. At this point, it's hard for us to call too much further out in the future." Micron now plans to reduce its capital spending next year to approximately $2bn, it said, down from an estimated $2.9bn this year. Its shares are currently down $1.14, almost 14%, at $7.29.