Micron's K-Form Observations

Some time ago Micron has published FY2007 10-K Form. Here are few quick observations on Imaging segment business, based on 10-K and comparisons with Q3'2007 10-Q Form:

In 3rd quarter ended on May 31,2007 Micron's Imaging segment lost $17M. During the next quarter ended on Aug. 31, 2007 it lost $15M.

Micron bumped up its Imaging segment R&D spendings from 9% of Imaging sales in Q3'FY2006 to 31% in Q3'FY2007. This translates to almost $43M per quarter, about $170M per year burn rate for Imaging R&D only.

With such a huge R&D budget it's no wonder that image sensor business loses money. Now my question is how Micron can spin off this money bleeding business? And what business model can make these plans viable?