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Micron had offered to pay about $3.4 billion for Hynix's core memory business, and to take a minority stake in the non-memory arm.
"We continue to believe AMD is positioning itself to sell its Flash memory business and augment its processor business," CSFB said.
"Take away the gains in the memory business, and what you would have had is a 1% percent decline for the industry overall," Matas says.
The company's data center business, core memory business, and its Internet of Things business all recorded lights out revenue for the quarter.
Hammered by the declining fortunes in the computer memory business and the general downturn in the semiconductors sector, it has also been haunted by the prospect of losing the crucial court cases.
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One of them attacked me aggressively, asking, "Does it mean that you can conceive of Intel without being in the memory business?" I swallowed hard and said, 'yes, I guess I can.' All hell broke loose.
Mr. Hampel is the most senior engineer at Rambus, a Silicon Valley technology company that has spent much of the last decade suing many of the biggest names in the computer memory business over its technology patents, and getting sued in turn.
A few years ago the flash memory business had excellent profit margins and high prices.
"However, a continued commoditization of the Flash memory business heading into the downturn and potential for excess processor capacity in 2006 balances our positive processor outlook".
The two launched their first computer memory business out of a garage and in a few short years reached sales of $9 million.
Named chief executive in 1994 at the age of 34, Appleton has survived boom and bust in Micron's memory business, Asian dumping, industry consolidation, price wars, messy court battles and management and board turmoil.
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