Micron Closes RFID Operations

Boise, ID-based Micron Technology Inc. announced that it will discontinue funding its RF identification (RFID) development efforts. By doing this, the company will close Micron Communications Inc., which was responsible for its RFID product development.

Micron's decision to leave the RFID business came the same day the company released its third quarter 1999 results. In the third quarter, which ended June 3, the company reported net sales of $613 million and a net loss of $109 million.

The company's semiconductor operations gross margin decreased in the third quarter of fiscal 1999 as compared to the second quarter as a result of an approximate 27% decline in pricing on the 64 MB synchronous dynamic random-access memory (SDRAM). On the upside, Micron's megabits of production increased approximately 17% while its megabits sold increased approximately 8%.

During the third quarter, Micron also continued to experience problems in its PC business. Unit sales of the company's PC systems decreased 13% during the third quarter of 1999.

By closing its RFID operations, Micron says it can refocus efforts on improving performance in its semiconductor business. In addition, the close of Micron Communications will result in a consolidated pre-tax charge of $9 to $12 million.