Live: Amazon Event Wednesday Probe Crashes Into Asteroid Prime Day 2: Oct. 11-12 Tesla AI Day Hurricane Ian Satellite Images Save on iPad Pro Refurbs Apple Watch Ultra Review EarthLink Internet Review
Want CNET to notify you of price drops and the latest stories?
No, thank you

Micron getting back on track

Despite facing stiff competition, the direct-order computer vendor appears to be making some headway in its business recovery.

Despite facing stiff competition, Micron Electronics appears to be making some headway in its business recovery.

The company said today that it posted net income of $5.9 million, or 6 cents a share, for its third fiscal quarter, compared with a profit of $19.7 million, or 20 cents a share, reported for the like period a year ago. Sales for the latest quarter were $340.8 million, down from $511.4 million posted for the comparable year-ago period.

According to First Call, analysts had expected the direct-order computer vendor to earn about 4 cents a share for the latest quarter.

Micron said its gross margins improved to 19.2 percent for the third fiscal quarter, up from 0.9 percent last quarter and 15.6 percent for the like quarter last year. The company said also that it ended the quarter with personal-computer inventories of $28 million.

"Over the past quarter, the company has been steadfast in our goal to improve execution and maximize the business advantage of the direct business model," said Micron president Joel Kocher. "We have made significant progress in business efficiencies thanks to a sharp reduction in inventory levels and an industry-leading cash conversion cycle."

Shares of Micron traded up slightly in after-hours trading.

In February, the company announced a reorganization that including shifting employees from computer manufacturing to the parent company, as well as consolidating server operations. Kocher formerly was president of Power Computing.