Micron quarterly earnings drop. Next quarter’s worse.

As expected, Micron’s second-quarter earnings showed a drop in earnings from previous performances, which had been on a fairly steady climb since 2016, though slightly better than predicted. But next quarter isn’t good.

Jim Handy, a veteran Micron analyst and general director of Objective Analysis, in Los Gatos, California, said, in a call, Micron announced that their fiscal Q2 revenues (Dec-Feb) were down 26 percent from the previous quarter and 21 percent from the previous year, and that next quarter’s revenues would slip from $5.8 billion to $4.8 billion, plus or minus $200 million.

“We’re in a bona fide collapse!” Handy said.

Results for the quarter of the Boise-based semiconductor company were diluted earnings per share of $1.71 and revenue of $5.8 billion. In comparison, the results for the previous quarter were diluted earnings per share of $2.97 and revenue of $7.9 billion, while results for the same quarter a year ago were $2.82 and revenue of $7.4 billion.

Micron blamed the decline on worse than expected chip pricing in the second quarter. The company, which celebrated its 40^th anniversary in October, has been predicting lower earnings since late last year.

That said, it could have been worse. The consensus estimate by analysts had been earnings per share of $1.67 and revenue of $5.82 billion.

For the next quarter, the company expects revenue of $4.8 billion, plus or minus $200 million, and diluted earnings per share of $0.85, plus or minus $0.10. It also said it plans to reduce some of its manufacturing capability by about 5 percent, due to lack of demand.

The company announced earlier this year that it was borrowing $1.8 billion to pay off other notes, as well as acquiring a plant in Utah for $1.5 billion after a partnership with Intel ended. Micron had said in mid-October that it intended to exercise its option to acquire Intel’s interest in the project.

The two companies said in July that they had agreed to conclude their joint development of 3D XPoint technology after the completion of the second-generation node, which is expected to occur in the second half of fiscal 2019, ending on Aug. 30. At that time, Micron said it was collaborating with partners it did not name to introduce 3D XPoint products in late 2019. In addition, Micron will sell 3D XPoint memory wafers to Intel for up to a year after close, the company said. Intel and Micron had ended another similar partnership a year ago.