Micron sees income above estimates as demand rises for remote-work units

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(Reuters) – Chipmaker Micron Expertise Inc (MU.O) forecast current-quarter income above analysts’ estimates on Wednesday and stated the shift to work-from-home globally because of the coronavirus outbreak is fueling demand for notebooks and knowledge heart providers.

FILE PHOTO: The emblem of U.S. reminiscence chip maker MicronTechnology is pictured at their sales space at an industrial honest in Frankfurt, Germany, July 14, 2015. REUTERS/Kai Pfaffenbach/File Picture GLOBAL BUSINESS WEEK AHEAD

Authorities all over the world have locked down cities, enforced extreme restrictions on journey and inspired individuals to remain at residence to comprise the quickly spreading virus.

Notebooks that assist work-from-home and digital studying are more and more in demand, Chief Govt Officer Sanjay Mehrotra stated on a post-earnings name with analysts.

The soar in distant work can also be powering a surge in demand for knowledge heart providers.

Mehrotra stated knowledge heart enterprise in China was boosted by elevated gaming, e-commerce and remote-work actions because the nation locked down many cities and areas to fight the outbreak.

The corporate is shifting provide from smartphone to service the power in knowledge heart markets, Mehrotra stated, including the demand may result in provide shortages.

Final week, Samsung Electronics Co Ltd (005930.KS) stated coronavirus would damage gross sales of smartphones and client electronics this yr, whereas demand from knowledge facilities would gas a restoration in reminiscence chip markets.

Micron stated two of its factories in Malaysia have been briefly shut down and is now working manufacturing on a restricted foundation, in compliance with the nation’s orders.

The corporate didn’t present any updates about manufacturing at its U.S. crops, as states impose shut downs to counter the quickly spreading virus.

In the meantime, a gaggle representing main semiconductor firms together with Intel Corp (INTC.O) and Micron stated on Wednesday it was working with federal officers to clarify to state and native officers overseeing lockdowns that chip firms are important companies that ought to proceed operations.

Micron stated two of its staff had examined constructive for the coronavirus, and are receiving medical consideration, with out specifying the placement particulars.

The Idaho-based firm forecast third-quarter income within the vary of $4.6 billion to $5.2 billion, the midpoint of which was above analysts’ estimates of $4.87 billion.

The corporate’s shares rose 5% in prolonged buying and selling because the estimate adopted warning of gross sales hit by different semiconductor makers comparable to Apple provider Skyworks Options Inc (SWKS.O).

Reporting by Munsif Vengattil in Bengaluru and Stephen Nellis in San Francisco; Enhancing by Maju Samuel and Sriraj Kalluvila

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