According tomedia reports, U.S. computer memory chip maker Micron earned $405 million, or 36 cents per share, in the second quarter ended February 27, down from $1.62 billion and $1.42 per share a year earlier. Revenue for the second quarter was $4.8 billion, down 18 percent from a year earlier. Micron Technology expects revenue to be stronger than analysts had expected in the current quarter.
This suggests that orders from data center operators will help make up for the loss of demand from smartphone makers due to the new coronavirus outbreak.
Micron said Wednesday that it would report revenue of $4.6 billion to $5.2 billion in the third quarter, with adjusted earnings per share of 55 cents, or plus or minus 15 cents. Analysts had expected revenue of $4.88 billion, or 52 cents per share, for the quarter, according to data compiled by Bloomberg.
Millions of people are working from home on request to help contain the current outbreak of Covid-19. During this special period, Micron was one of the first chip companies to report earnings and forecast results from the chip industry.
The company said demand for laptops with home and virtual learning uses was growing, although smartphones, consumer electronics and automotive markets were performing less than previously expected, as remote work increased, gaming and e-commerce activity was active and data centers were strong.
Micron has plants in Singapore, Malaysia and Japan, where outbreaks predate the outbreak in Europe and the United States. But now, with outbreaks in Europe and the US and the blockade in place, analysts worry that demand for The light chips will suffer.
But some analysts believe that while consumer demand for mobile phones and PCs is falling, the amount of remote work is increasing, which will spur spending on data center infrastructure, and servers tend to be more expensive to use.