Micron Technology today reported the results of operations for the first quarter of its 2003 fiscal year which ended November 28, 2002. The company recognised an operating loss for the first quarter of fiscal 2003 of $297 million and a net loss of $316 million, or $0.52 per diluted share, on sales of $685 million. These results compare to an operating loss of $468 million on sales of $748 million for the immediately preceding quarter and an operating loss of $452 million on sales of $424 million for the first quarter of fiscal 2002. So, there were almost no positive trends during the quarter, losses started to decrease, but sales also plummeted.

These operating results include charges for write-downs of inventories to their estimated market values of $91 million for the first quarter of fiscal 2003, $174 million for the fourth quarter of fiscal 2002 and $173 million for the first quarter of fiscal 2002. Absent the effect of the first quarter of fiscal 2003 write-down and the effects of previous write-downs of products sold in the first quarter, the company’s operating loss for the first quarter of fiscal 2003 would have been $345 million.

The current quarter inventory write-downs were primarily attributable to SRAM and Flash products and Synchronous DRAM products. The write-down of SRAM and Flash products was necessitated by the extended downturn in the telecommunications and networking markets.

Average selling prices per megabit for the company’s semiconductor products decreased approximately 12% in the first quarter compared to the immediately preceding quarter ended August 29, 2002, principally as a result of lower selling prices for the Company’s synchronous DRAM products partially offset by higher selling prices for DDR products. Megabit sales volumes were modestly higher comparing the first quarter to the immediately preceding quarter. Synchronous DRAM products constituted approximately 60% of the first quarter sales as measured in megabits, as demand allowed the Company to reduce inventories of these devices. The company’s production in the first quarter was slightly more than 50% DDR memory.

Megabit production was slightly higher comparing the first quarter of fiscal 2003 to the immediately preceding quarter. This increase was accomplished in the midst of transitions to both DDR devices and 0.13 micron line-width processes. At quarter end, approximately 40% of the Company’s worldwide production had shifted to 0.13 micron process. The company’s transition from trench technology used in its recently acquired Manassas, Virginia facility to Micron’s stack technology is expected to be completed as scheduled in the first calendar quarter of 2003. The company’s 300mm pilot production line in Manassas is on schedule and progressing well.