Facebook Twitter

Falling profits fail to dispirit Micron

SHARE Falling profits fail to dispirit Micron

Company officials at Micron Electronics Inc. are remaining optimistic despite a decrease in sales and profits.

The PC company on Monday reported profits of $5.9 million in the third quarter, down 70 percent from the same period last year. Sales totaled $340.8 million, down 33 percent from third-quarter 1997.The company sold 6 percent fewer personal computers than last year. Even so, the numbers exceeded Wall Street's estimates. Analysts credited Joel Kocher, president and chief operating officer since January, for resolving many of the company's internal problems.

"So far, Joel's made all the right moves," said Louis Mazzucchelli, an analyst with Gerard Klauer Mattison in New York.

The quarterly profits included a $4.4 million rebate that Micron Electronics negotiated on a new service contract. Without the rebate, the company would have made $1.5 million for the quarter ending May 28.