Speaking of which, I also don't believe that management has received the credit deserved for navigating the weak ASP environment the way that it has. This quarter was no different. Cost-per-bit for both DRAM and NAND were down sequentially by 5% and 1%, respectively. This contributed to better gross margin, which advanced by more than 13% year over year and by more than 6% sequentially.
Even more impressive, though, is that this level of fiscal awareness by management has helped the company reverse a year-ago loss to $43 million in profits. Remarkably, even with added pressures from SanDisk and Samsung, I don't expect that this profit trend will end soon.
In my recent article, these questions (among others) were my biggest sources of concern. Regarding Micron's competitive position, I said:
"It will be also interesting to hear what management says about the progress of memory business and previous diversification plans. With competition gaining ground, while ASPs are falling, I've argued that Micron should seek stronger growth opportunities in other end-markets such as servers and mobile."In that regard, new developments regarding the completed acquisition for bankrupt chipmaker, Elpida, should give investors a clearer sense of how management plans to move the combined companies forward, especially since Elpida was expected to give Micron some leverage with Apple (AAPL)."
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