Micron Technology swung to net losses of US$215 million in the third quarter ended June 2, 2016, from profits of US$491 million a year earlier. Meanwhile, revenues fell 25% on year to US$2.90 billion.

On a sequential basis, Micron's revenues for the fiscal third-quarter 2016 were slightly lower than US$2.93 billion posted for the prior quarter, while net losses widened compared to losses of US$97 million in the previous quarter ended March 3, 2016.

DRAM revenues increased sequentially in the third quarter of fiscal 2016 as a result of a 22% increase in unit sales partially offset by an 11% fall in average selling prices, Micron said. Sales of non-volatile products decreased due to a 10% decline in units sales and a 6% fall in ASP.

"Although we have made good progress in deploying our advanced DRAM and NAND technologies, we continue to face challenging market conditions," said Micron CEO Mark Durcan. "To address the current market environment and strengthen our competitive position, we are implementing a number of initiatives to reduce costs, drive greater efficiencies, and increase focus on our strategic priorities."

The initiatives, which include a global workforce reduction, are expected to save the company over US$300 million in fiscal 2017, according to Micron.

Looking forward, Micron expects stronger DRAM bit growth in the fourth quarter of fiscal 2016 as a result of the deployment of its 20nm technology. Meanwhile, the company is ramping up the output of its 3D NAND and expects to see significant bit growth and cost per bit reductions starting in the fall.

Micron provided its guidance for the fourth quarter of fiscal 2016 with revenues reaching between US$2.9 billion and US$3.2 billion. Gross margin will range from 15.5% to 18% compared with 17% in the prior quarter. The company expects to remain in the red with operating losses of US$55-135 million.