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Microns you will receive all the required licenses for the delivery of it to Ascend; shares rise

(Reuters) – Micron Technology Inc. said on Wednesday it had received all the requested licenses to provide certain products to its largest customer, the chinese-Huawei, a huge relief for the chipmaker which is struggling in the middle of the delay memory on the market.

FILE PHOTO: a Micron-Technology with solid-state drives for data center customers, was presented at a product launch event in San Francisco, california, USA, October 24, 2019 at the latest. REUTERS/Stephen Nellis

Shares of Micron, which increased by nearly 4% in extended trading, after its quarterly earnings beat Wall Street estimates, on rising demand for memory chips and, after a warm year.

“We have applied for and recently received all of the requested licenses, which will enable us to provide support for certain products, etc., as qualifying a new product for Huawei mobile server, and the businesses,” the company said.

The users are not expected to have a material impact on the company’s revenue in the next quarter, Micron said.

Washington placed the Smartphone in a so-called entity list in May, citing national security concerns, which are, in fact, it is forbidden to AMERICAN companies to supply it.

In June, Micron said that it had been established that a number of products that can still legally be delivered to a Smartphone, but the others had been excluded.

The officers of the s. S., in November, for the grant of licences to the companies to resume the transmission to the Smartphone, but Micron did not disclose than if it had received a license.

Chipmakers are faced with a harrowing 17 months in the United States and China traded, rate of collapse, which reduced access to the Chinese market, one of the largest U.S. companies.

The Idaho-based company forecast second-quarter revenue of between $4.5 billion and $4.8 billion, while analysts had expected $4.78 billion.

“With our continued strong performance and the improvement of the conditions of the market, and we are optimistic that Micron in the fiscal second quarter will be the cyclical bottom in our financial performance,” Chief Executive Officer Sanjay Mehrotra said.

On an adjusted basis, the company earned 48 cents per share, compared with a projection of analysts ‘ estimates of 47 cents per share.

Net income attributable to owners of the company decreased to a total of $491 million, or 43 cents per diluted share, for the first quarter ended Nov. 28, from $ 3.29 billion, or $2.81 per diluted share, a year earlier.

Revenue fell to $5.14 billion from $7.91 billion, but beat estimates of $5.01 billion, according to IBES data, Refinitiv.

Reporting by Neha Malara and Nivedita Balu in Bengaluru; Editing by Shinjini Ganguli

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