(AOF) – In the first quarter, which ended in early December, Micron suffered a net loss of $195 million, or 18 cents per share, against a profit of $2.63 billion and $2.04 per share, a year previously. The adjusted loss per share came out at 4 cents, or 3 cents than that expected by the consensus. The turnover fell by 46.9% to 4.085 billion dollars and Wall Street anticipated 4.13 billion dollars.
In the second quarter, it is targeting average revenue of $3.8 billion and adjusted earnings per share of between -52 cents and -72 dollars, or an average forecast of -62 cents. The market is targeting $3.88 billion and -29 cents respectively.
“Due to the significant mismatch between supply and demand heading into calendar year 2023, we expect profitability to remain elusive throughout this year,” the company warned ahead of the release. conference with analysts.
In this weak market environment, Micron said executive salaries are being reduced for the remainder of fiscal year 2023. In calendar year 2023, the technology group will reduce its workforce by approximately 10% through a combination of voluntary departures and staff reductions.
Capital spending for FY2023 is further reduced to a range of $7 billion to $7.5 billion from the original target of $8 billion and the $12 billion level of the fiscal year 2022. This represents a reduction of approximately 40% year-over-year.
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Growing market and price pressures
According to the SIA, global chip sales were $151.7 billion in the first quarter of 2022, up 23% year-on-year. Sales increased in all major regional markets and for all product categories. As global uncertainties, including the war in Ukraine and the health crisis, weigh on supply chains, demand for semiconductors continues to significantly outpace supply. Manufacturers Samsung and TSMC have announced that they will raise their prices, in a context where players in the sector have good leeway and benefit from increased bargaining power. However, wage increases and component prices could weigh on future performance.
Growth of the French market in value
According to the Gfk institute, the sector generated sales of 4.8 billion euros in 2021, up 2% compared to 2020. The product families that benefited from the best performance are in particular helmets and accessories as well as televisions. However, while the French consumer electronics market grew in value last year, it fell in terms of volumes (-2% with 51 million units sold). This trend can be explained by a move upmarket in products: Bluetooth speakers are more powerful or even televisions use more innovative technologies. Thus the development of technologies that improve image resolution (Oled, Qled, miniled) and the size of screens have caused an increase of more than 20% in the average price. Consumers are also looking for more sustainable products.