The revenue increase moved Micron into the plus column, as Micron reported operating income of $22 million and net income of $1 million for the first fiscal quarter of 2004 beginning Dec. 4.

The announcement also confirmed the semiconductor industry's improving prospects.

Micron's sales were 25 percent higher compared with the preceding quarter. In the corresponding quarter in the previous year, Micron lost $315.9 million.

"The first quarter gross margin of 26 percent is, in part, a result of worldwide cost-reduction efforts, gains in manufacturing efficiencies, and our leadership in process technology," said Steve Appleton, CEO and president.

"We are the only company currently shipping all densities of DDR2 DRAM." The firm noted that manufacturing yields improved during the move to 110-nanometer devices.