Jun. 26--Micron Technology Inc.'s 10th straight quarterly loss is cushioned by a $400 million cash infusion that should see the company through the bottom of a tough memory-chip market that could rebound next year, analysts say.

In an industry long strained by falling prices, Micron's war chest of cash and investments, plus technological improvements that will reduce the cost of chip production, should position the company well in the year ahead, said Kevin Jones of Harmonic Investment Advisors in Boise.

Micron posted a loss of $290 million in its latest quarter, compared with $236 million in the same quarter a year ago.

The Boise memory-chip maker said its revenue fell more than one-fourth in the quarter that ended June 4, compared with the same quarter of 2008. Revenues totaled $1.1 billion, down from $1.5 billion.

Micron has lost about $3.8 billion since late 2006 as a result of sharp worldwide declines in market prices for its commodity memory products and, more recently, recession-induced declines in demand.

Micron announced in February that it would end manufacturing in Boise by August by shutting down its local fabrication lines for dynamic random-access memory, its principal product.

The company, until recently Idaho's largest private employer, is shedding 2,000 people from its Boise work force, reducing employment here to about 5,000 people, less than half the number it employed early in this decade.

But the company said revenue from sales of DRAM, its primary product, rose 14 percent in the latest quarter from the previous quarter because of increased sales volumes.

While the losses continue, many of Micron's competitors are hurting, too, analysts say.

Some competitors aren't receiving government support to the extent they once did, and they can't keep up with new technology, said Dave Petso, a Boise financial consultant.

In April, Micron went to the market to raise money, selling common stock and convertible notes, which can be converted into common stock. The sales boosted the company's cash horde to $1.3 billion from $932 million.

"I think the company has done everything it can," Petso said. "They now need the market to turn and prices to improve."

Micron shares closed Thursday at $5.30, up 16 cents, before the earnings announcement. Shares had fallen 17 cents to $5.13 in light after-hours trading.

The quarterly loss amounted to 36 cents a share, less than the 43 cents projected by analysts surveyed by Thomson Financial Network.

Micron did not return a phone call seeking comment.

Bill Roberts: 377-6408

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