Jun, 2001 : Micron Posts Q3 Loss, Drops Dial-Up Business
📅 - Micron Electronics said today it would post a third-quarter loss and shed its dial-up access unit in an effort to achieve profitability.
The company posted a loss of $9.1 million, or 9 cents per share. Revenues, however, were up significantly - the company generated revenues of $15.4 million for the quarter, compared with $10.2 million in the year-ago quarter.
With the sale of its dial-up unit and the recent completed sale of their PC manufacturing unit, Micron now becomes a pure-play Web hosting business.
Joel J. Kocher, chairman and CEO of Micron, emphasized the fact that HostPro's numbers were improving despite market conditions and the demise of some competitors.
"It's important to note that HostPro's business model is markedly different from those of Exodus and other enterprise-focused players, who overbuilt, and are now staggering under their debt burdens," he said. "HostPro's model is built on the efficiencies of the shared hosting and scalable managed services market, requiring far less data center space."
The company posted a loss of $9.1 million, or 9 cents per share. Revenues, however, were up significantly - the company generated revenues of $15.4 million for the quarter, compared with $10.2 million in the year-ago quarter.
With the sale of its dial-up unit and the recent completed sale of their PC manufacturing unit, Micron now becomes a pure-play Web hosting business.
Joel J. Kocher, chairman and CEO of Micron, emphasized the fact that HostPro's numbers were improving despite market conditions and the demise of some competitors.
"It's important to note that HostPro's business model is markedly different from those of Exodus and other enterprise-focused players, who overbuilt, and are now staggering under their debt burdens," he said. "HostPro's model is built on the efficiencies of the shared hosting and scalable managed services market, requiring far less data center space."
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