Source: Micron Technology.

Micron Technology (NASDAQ:MU) just reported results for the third quarter of fiscal year 2014, showing that sales increased 72% year-over-year and decreased 3% from second-quarter levels, landing at $4.0 billion. Year-ago results do not include the operations of Elpida, which Micron acquired in July, 2013. Analysts were looking for $3.9 billion in third-quarter sales.

On the bottom line, Micron's non-GAAP earnings passed Wall Street's $0.70 target to stop at $0.79 per share. A year ago, earnings were $0.04 per share. Last quarter, they were $0.85 per share.

Gross margins held steady quarter-over-quarter at 34%, as slight average sale price declines were matched by lower manufacturing costs. DRAM prices fell 2% in the quarter while NAND prices held firm.

Operating cash flows were $1.5 billion and capital expenses stopped at $580 million, yielding $884 million in free cash flows. A year ago, free cash flows were reported at $389 million.

Micron's balance sheet carries $5.6 billion in total debt, a 55% increase from year-ago levels. At the same time, cash equivalents increased 67% to $4.3 billion.

Share prices dropped 1.2% in after-hours trading. Before this market reaction to the financial release, Micron shares had risen approximately 125% over the last year and 44% year-to-date.