On December 18, Micron Technology announced its first quarter results for fiscal year 2020 as of November 28, 2019. Both revenue and profit exceeded market analysts’ expectations. Analysts had previously expected revenue of US$4.99 billion on average, with an average Earnings per share are expected to be $0.47.
Micron emphasized that it has recently received all license requests for Huawei shipments. These licenses allow Micron to provide support for certain unrestricted products while also providing new products for Huawei's mobile devices and servers. , but it will take some time to provide new products. Inspired by the above news,
’s stock price rose 5% after the market opened. As of 7:59 pm on December 18, US time, the stock price rose 4.62% after the market closed at $55.49.
Micron stock price
According to Micron’s first quarter fiscal 2020 financial report, revenue for the quarter was US$5.14 billion, compared with US$4.87 billion in the previous quarter, a year-on-year increase of 5.5%, and US$7.91 billion in the same period last year, a year-on-year decrease of 35%. GAAP Net Profit was US$491 million, down 12.5% month-on-month and 85% year-on-year; or US$0.43 per diluted share; non-GAAP net profit was US$548 million, or US$0.48 per diluted share, and operating cash flow was US$2.01 billion. This compares to US$2.23 billion in the previous quarter and US$4.81 billion in the same period last year.
Micron revenue
In the first quarter of fiscal 2020, Micron’s capital expenditures (excluding funds provided by partners) were US$1.93 billion, and adjusted free cash flow was US$79 million. Micron repurchased a total of 1 million shares of common stock for $50 million in the first quarter of fiscal 2020 and ended the quarter with $8.31 billion in cash, marketable securities and restricted cash and a net cash position of $2.66 billion.
In the first fiscal quarter, Micron's DRAM revenue was US$3.446 billion, accounting for 67% of total revenue; DRAM revenue increased by 12% month-on-month, Bit shipments increased by approximately 10% month-on-month, and ASP decreased by approximately 8% month-on-month. %. NAND Flash revenue was US$1.44 billion, a decrease of 4.6% month-on-month, accounting for 28% of total revenue. NAND Bit shipments increased by 15% month-on-month, and ASP increased by low single digits month-on-month.
According to department revenue, Micron's computer and network business revenue was US$1.98 billion, a month-on-month increase of 4%, and a year-on-year decline of 45%; mobile business revenue was US$1.46 billion, a month-on-month increase of 4%, a year-on-year decline of 34%; the overall storage business revenue Revenue of US$968 million, a month-on-month increase of 14%, and a year-on-year decrease of 15%; embedded business revenue was US$734 million, a month-on-month increase of 4%, and a year-on-year decrease of 21%.
Recently, the memory chip market has been rising. Since the price increase at the end of November, as of December 18, the price index of consumer NAND Flash has increased by 6.4%, including NAND Flash particles, SSD, flash memory card , and embedded Prices of products have increased to varying degrees. Following the price increase of NAND Flash, DRAM prices also showed a bottoming out trend.
Consumer NAND Flash price index in 2019
Consumer NAND Flash price index in 2019, source: China Flash Market, data as of December 18, 2019
As the storage industry recovers, Micron expects DRAM and NAND Flash prices in 2020 Industry supply and demand will continue to improve. It is believed that the second quarter of fiscal year 2020 is the off-season of 's natural quarter and will be the trough of business. It will gradually improve in the second half of the year and its financial situation will gradually rise.
Micron further emphasized that fiscal year 2020 will be full of challenges, and Micron will focus on improving profitability and ensuring free cash flow. Micron plans to start producing the first-generation RG node 128-layer 3D NAND in the second half of fiscal year 2020 to achieve minimal costs and improve product price advantages. By 2021, the second-generation RG node will enable higher stacking layers and further reduce cost. In terms of DRAM, LPDDR4 uMCP based on 1Znm technology has the fastest revenue growth. In 2020, it will further increase the 1Znm product portfolio and improve product competitiveness.
Micron estimates that in the second quarter of fiscal year 2020, based on Non-GAAP calculations, revenue will be between US$4.5 billion and US$4.8 billion, with a gross profit margin of 27%, plus or minus 1.5%, and operating expenses of US$825 million, plus or minus $25 million. Diluted earnings per share were $0.35, plus or minus $0.06.
Revenue forecast for the second quarter of fiscal 2020
Micron CEO Sanjay Mehrotra said that Micron Technology has stable first-quarter performance, good profitability, and positive free cash flow. With strong execution and improving industry conditions, Micron's second quarter financial position will be the bottom of the financial performance cycle. We will improve our competitiveness, significantly enhance our product portfolio, structurally improve our profitability, and drive growth in shareholder value.
