NEW YORK ( TheStreet) -- Shares of Micron Technology ( MU) were pummeled in extended trades on Thursday after the chip maker's revenue fell well short of Wall Street expectations for its fiscal third quarter. The Boise, Idaho-based company said it earned $75 million, or 7 cents a share, in the three months ended June 2 on revenue of $2.14 billion. The average estimate of analysts polled by Thomson Reuters was for a profit of 16 cents a share on revenue of $2.36 billion. The stock was last quoted at $7.38, down 12.5%, on volume of 3.7 million, according to Nasdaq.com. Based on a regular session close at $8.43, the shares were up 1.8% so far in 2011. Micron said its consolidated gross margin improved on a sequential basis to 22% in the latest quarter from 19% in the second quarter because of lower manufacturing costs. But sales of DRAM
dynamic random access memory products were down 7% on a sequential basis because of declining volume, while sales of NAND Flash products fell 5% on a sequential basis because of weaker average selling prices. Wall Street was bullish on Micron ahead of the report with 18 of the 26 analysts covering the stock at either strong buy (10) or buy (8), and the 12-month median price target sitting at $14.
Other stocks seeing trading interest late Thursday included Southern Union ( SUG), which received an all-cash acquisition proposal from Williams ( WMB) that values the natural gas transportation company at $39 per share. The bid tops an existing agreement Southern Union has to be acquired by Energy Transfer Equity ( ETE) for $33 per share. Southern Union has yet to comment on the Williams' offer. The stock, however, has responded, surging to $39.20 in late trades, a gain of 14.8%, on volume of more than 6.5 million. Williams' stock was last quoted at $28.01, down nearly 5%, on volume of more than 670,000. Shares of Blackboard ( BBBB) were also rallying late after The Wall Street Journal reported the education software developer was nearing a deal to be taken private by Providence Equity Partners. The stock advanced almost 8% to $43.99 on volume of 44,000, according to Nasdaq.com. The company hasn't commented on the WSJ report, but in April it announced the hiring of Barclays Capital to act as its financial adviser after receiving "unsolicited, non-binding proposals" to acquire the company. -- Written by Michael Baron in New York. >To contact the writer of this article, click here: Michael Baron. >To submit a news tip, send an email to: email@example.com