Micron quarterly revenue misses estimates on falling chip prices

Memory chip parts of U.S. memory chip maker MicronTechnology are pictured at their fair booth at an industrial fair in Frankfurt, Germany, July 14, 2015. REUTERS/Kai Pfaffenbach/File Photo

(Reuters) – Chipmaker Micron Technology Inc (MU.O) on Tuesday missed Wall Street estimates for quarterly revenue, hurt by falling prices for its memory chips due to a supply glut.

Shares of the Boise, Idaho-based company fell 1 percent after the bell.

The semiconductor industry is battling price declines due to oversupply of DRAM and NAND memory chips, with Micron trying to overcome that by investing more in its next generation of chips.

Net income attributable to the chipmaker rose to $3.29 billion, or $2.81 per share, in the quarter ended Nov. 29, from $2.68 billion, or $2.19 per share, a year earlier.

Excluding items, Micron earned $2.97 per share, narrowly beating the analyst average estimate of $2.96, according to IBES data from Refinitiv.

Net sales rose 16 percent to $7.91 billion, but missed the analyst expectation of $8.02 billion.

Reporting by Sonam Rai in Bengaluru and Stephen Nellis in San Francisco; Editing by Arun Koyyur

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