BOISE -- Financial analysts say there are signs of strength in Micron's future, saying the second quarter could be better than the first.
The biggest factor contributing to Micron's profits is the price of the chips it produces, and those production costs drop daily. Now, four weeks into Micron's second quarter, chip prices are up five percent.
That means their profit margin has increased.
Experts say that's good news for Micron and Idaho's economy, which appears to be slowly getting back on track.
"Their ability to raise money in a difficult environment is what saved them," said Dave Petso, Certified Financial Planner.
For the last three years Micron has shed jobs. In 2007 it was 1,500. In 2008, another 1,500. In 2009, 2,000 workers lost their jobs.
With profits in the first quarter a little over 200-million dollars lay-offs are likely a thing of the past.
"Micron is a feast and famine kind of business, and we've had a long period of famine, and now we're moving into the profitable side of things. I think it's clearly good news," said Idaho's Chief Economist Michael Ferguson.
Good news on several levels.
"This further reinforces the notion that the period of dramatic decline in Idaho's economy is potentially behind us," said Ferguson.
"But I want to caution that there are still a lot of headwinds in the economy that have to do with condition of state government finances, both in Idaho and across the rest of the country," said Ferguson.
Even still, Ferguson says this is a step in the right direction.
"And that's where I think the Micron thing helps immensely, it's basic employment. It's the kind of thing that drives the economy, but we need to see continued positive developments throughout the rest of the economy," said Ferguson.
Micron was one of Idaho's first companies to experience economic hardships, it just might be the first to make it out.
"Prices finally bottomed and Micron was left with the newest equipment, the best factories, the best production, lowest cost output, and finally chip prices came back up, now they're the top dog," said Petso.
Over the last year as Idaho's economy continued to set new lows Ferguson says he had to adjust his quarterly economic forecast in a negative way. Today's news he says, might be just enough to cause a shift in the other direction. Hopefully putting Idaho's economy back on track sometime next year.
