Micron Technology Inc (NASDAQ:MU) shares were higher in pre-open trading after the chip maker's forecast-beating earnings performance in the first quarter ending November 30.
The company reported revenues of US$6.80bn, 71% higher compared with the same period last year. Compared to the fourth quarter of 2017, revenues for the first quarter was 11 percent higher, reflecting increased demand for mobile, server, and SSD products.
"Our overall consolidated gross margin of 55.1% for the first quarter of 2018 was higher compared to 50.7% for the fourth quarter of 2017 and reflects margin expansion for both DRAM and Trade NAND products supported by ongoing strength in the pricing environment and a favorable product mix," the firm said in a statement.
Net income in the first quarter was US$2.68bn, or US$2.19 per diluted share.
Operating cash flow, meanwhile, was US$3.6bn , 220 % higher compared with the same period last year.
READ: Micron Technology shares continue to trade higher after fourth quarter beats Wall Street outlook
"Micron's strong results were driven by double-digit sequential revenue growth in mobile, server and SSD applications, with expanded gross margins and improved profitability," said Micron President and CEO Sanjay Mehrotra.
"We are making solid progress on our strategic priorities to drive cost competitiveness, deploy high value solutions and strengthen our balance sheet. We believe these actions will position Micron to benefit from the broad demand trends ahead of us" he added.
In pre-market trading, Micron shares were up US$3.17 at US$47.15, a rise of 7.21%. In the regular session, they gained 3.37% to stand at US$45.46.