Micron raises revenue forecast in third quarter

ARCHIVE PHOTO: Micron Technology's solid state drive for data center customers is presented at a product launch event in San Francisco, USA, October 24, 2019. REUTERS / Stephen Nellis

(Reuters) – Micron Technology Inc (MU.O) raised its revenue forecast for the third quarter on Wednesday to a range of $ 5.2 billion to $ 5.4 billion, from $ 4.6 billion to $ 5.2 billion, by sending its shares about 3% more.

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The memory chip maker said in a regulatory file www.sec.gov/ix?doc=/Archives/edgar/data/723125/000072312520000053/mu-20200527.htm that expected adjusted earnings between 75 cents per share and 80 cents per share.

“We had strong demand from our customers – mainly in the data center space – and this demand was driven mainly by the economy of working at home, the increased load on the server infrastructure because of everyone who works at home, entertaining at home , ”Sumit Sadana, Micron's business director, told Reuters in an interview.

Sadana said Micron also saw an increase in sales of server chips to retailers by expanding its e-commerce operations to meet extra demand, while many physical retail locations were closed during the new coronavirus pandemic. Micron also saw an increase in sales of laptop memory chips for work and home education.

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Analysts had expected revenue of $ 4.93 billion and adjusted earnings of 56 cents per share, according to data from IBES 'Refinitiv.

(This story corrects the spelling of "from" in paragraph 3)

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Reporting by Ayanti Bera in Bengaluru and Stephen Nellis in San Francisco; edition by Uttaresh.V and Sonya Hepinstall

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