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Micron: Pricey Chips, Pricey Stock
Friday October 6, 4:04 pm ET
By Anders Bylund
Last night, computer memory expert Micron (NYSE: MU - News) reported results for fiscal year 2006, and things didn't exactly come up roses. The Lexar acquisition added $20 million to operational costs in the fourth quarter, although purchase accounting rules didn't allow the company to count any sales of Lexar products that had already shipped into distribution channels by the time the acquisition closed. The net effect of Lexar on the quarter and year, then, was a -$0.03 on the bottom line.
The current star performer in Micron's product portfolio is its line of camera sensor chips. This segment doubled sales from the previous year, which works out to about $800 million in revenues out of the $5.27 billion in total sales for the year. Not too shabby, and Micron looks well positioned against competitors like Pixelplus (Nasdaq: PXPL - News), STMicro (NYSE: STM - News), and OmniVision Technologies (Nasdaq: OVTI - News).
Micron: Pricey Chips, Pricey Stock (Motley Fool)
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