Micron (MU) Led by Agressive Sales

Agressive sales growth by Micron Technology (NASDAQ:MU) in the latest quarter helped the company overcome the drop in price of its memory chips, pushing up the share price of the company.

Net profit dropped almost 58 percent to $72 million, or 7 cents a share, in its fiscal second quarter ended March 3, compared with $155 million, or 15 cents a share, last year in the same quarter. That surpassed expectations of 2 cents a share.

The top U.S. maker of memory chips for computers and mobile devices said revenue in its fiscal second quarter was $2.3 billion, up from $2.0 billion last year in the same quarter. That also beat the $2.07 billion expected on average by analysts.

DRMA memory chip sales were lower by 6 percent in the quarter, even though there was a plunge of 23 percent in price.

For NAND flash memory, sales were up by 8 percent, as higher volume was able to overcome the drop in prices, which were 4 percent lower.

Stifel Nicolaus analyst Kevin Cassidy said, "We'll want to see if they think this trend will continue on pricing. We think that there will still be a tight supply-demand ratio going into the second half of the year."

Also helping the company beat estimates was its lower manufacturing costs, which also helped the company in the case of falling prices.

Micron closed Wednesday at $10.61, gaining $0.26, or 2.51 percent. The company was up almost 5 percent in after hours trading.