MU Q1 2024 Earnings

Call Details

• Call Title: Micron Technology, Inc. Q1 2024 Earnings Call
• Date: December 20, 2023 at 10:30 PM UTC
• Management Team:
  • Sanjay Mehrotra (President and CEO)
  • Mark Murphy (CFO)
  • Satya Kumar (Director of Investor Relations)

Call Summary

Financial Performance

• Total fiscal Q1 revenue was $4.7B, up 18% sequentially and up 16% year-over-year.
• Fiscal Q1 DRAM revenue was $3.4B, representing 73% of total revenue, with DRAM revenue up 24% sequentially and bit shipments up in the low 20s percentage range.
• Fiscal Q1 NAND revenue was $1.2B, representing 26% of total revenue, with NAND revenue up 2% sequentially while NAND bit shipments declined in the mid-teens percentage range and prices increased approximately 20%.
• Consolidated gross margin was near 1%, improving 10 percentage points sequentially, and operating loss was $955M resulting in an operating margin of negative 20%, improved from negative 30% in the prior quarter.
• Non-GAAP loss per share was $0.95 for fiscal Q1, improved from a non-GAAP loss per share of $1.07 in the prior quarter and $0.04 in the year-ago quarter.
• Operating cash flow was approximately $1.4B, representing 30% of revenue, and free cash flow in the quarter was negative $333M after $1.7B of capital expenditures.
• Ending inventory was $8.3B or 159 days, down from 170 days in the prior quarter, and excluding strategic stock ending inventory days would be approximately 142 days, only 22 days higher than the stated target.
• Balance sheet included $9.8B of cash and investments, $12.3B of liquidity including undrawn credit, and $13.5B in total debt with a weighted average debt maturity of 2030.

Guidance

• Fiscal Q2 revenue is guided to $5.3B, plus or minus $200M.
• Fiscal Q2 gross margin is guided to 13%, plus or minus 150 basis points.
• Fiscal Q2 operating expenses are guided to approximately $950M, plus or minus $15M, and fiscal year OPEX is projected to be over $3.9B due to higher R&D and incentive compensation.
• Fiscal Q2 tax expense is expected to be approximately $45M and the fiscal year tax forecast increased from under $200M to over $300M based on updated taxable income expectations.
• Micron expects a much reduced operating loss in fiscal Q2, a return to operating income in fiscal Q3, and positive free cash flow in fiscal Q4.
• Fiscal 2024 capital expenditures are projected to be between $7.5B and $8.0B, and WFE capex is expected to be down year over year.
• Both DRAM and NAND bit shipments are expected to decline somewhat in fiscal Q2, with near-term sequential growth driven primarily by pricing rather than bit shipments.