Micron published its quarterly report for FY08 Q2 ended Feb. 28. Its imaging business lost $21M on sales $135M in the quarter. Same quarter a year ago it lost $10M on sales $156M, for comparison.
Regarding the possible use of other CIS foundries, the report says:
"To improve its focus on the semiconductor memory market, the Company is exploring business model alternatives for its Imaging business including partnering arrangements. Under any of the alternatives being considered, the Company expects that it will continue to manufacture CMOS image sensors."