Micron Misses Profit Estimates

The company will slash senior executive salaries by 20%.
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Micron

(MU) - Get Report

reported a steeper-than-expected loss in its fiscal fourth quarter, as decreasing demand and an inventory writedown battered its business.

The Boise, Idaho, maker of memory chips said it will slash salaries for its senior executives by 20% as it weathers a market experiencing "severe oversupply and price degradation," CEO Steve Appleton said in a statement Wednesday.

Micron posted a loss of $344 million, or 45 cents a share, in the three months ended Aug. 28.

The loss included a $205 million charge to write down the value of memory inventories to current market value, as well as a $70 million benefit due to price adjustments for NAND flash memory purchases in prior periods.

Excluding the charges, Micron would have lost 27 cents a share -- 3 cents worse than the average analyst expectation.

Micron had sales of $1.45 billion in the quarter, compared to $1.44 billion at this time last year, and short of the $1.54 billion expected by Wall Street.

Shares of Micron were off 14 cents in recent after-hours trading to $4.16.