MU Q1 2019 Earnings

Call Details

• Call Title: Micron Technology, Inc. Q1 2019 Earnings Call
• Date: December 18, 2018 at 9:30 PM UTC
• Management Team:
  • Farhan Ahmad (Vice President, Investor Relations)
  • Sanjay Mehrotra (President and CEO)
  • Dave Zinsner (Chief Financial Officer)

Call Summary

Financial Performance

• Total fiscal first quarter revenue was $7.9B, up 16% year-over-year and down 6% sequentially on a non-GAAP basis.
• Consolidated non-GAAP gross margin for the fiscal first quarter was 59%, up 360 basis points year-over-year and down approximately 230 basis points sequentially.
• Operating income for the fiscal first quarter was $3.9B, representing 49% of revenue on a non-GAAP basis.
• Non-GAAP earnings per share for the fiscal first quarter were $2.97, up from $2.45 year-over-year and down from $3.53 sequentially.
• Cash from operations in the fiscal first quarter was $4.8B, representing 61% of revenue, and free cash flow was approximately $2.3B.
• Net cash position at quarter end was $3.1B with total liquidity of $9.7B including cash, marketable investments, and revolver capacity.
• DRAM represented 68% of company revenue and trade NAND represented 28% of company revenue in the quarter.

Guidance

• Fiscal second quarter revenue guidance is $5.7B to $6.3B on a non-GAAP basis.
• Fiscal second quarter non-GAAP gross margin guidance is 50% to 53%.
• Fiscal second quarter operating expense guidance is $800M plus or minus $25M, and non-GAAP EPS guidance is $1.75 plus or minus $0.10 based on ~1.15B diluted shares.
• Fiscal 2019 capex guidance was lowered to a range of $9.0B to $9.5B, representing a $1.25B reduction from prior guidance at the midpoint.
• Company expects fiscal second quarter sequential bid shipments to be down meaningfully for both NAND and DRAM.
• Company expects to remain flexible with capital spending and will continue to adjust capex to market conditions.