01—Abstract
Summary
Summary of the 10-K filed October 19, 2020. Cited figures are marked; the original filing is the authoritative source.
Micron Technology, Inc. reported total revenue of $21.4 billiona for the fiscal year ended September 3, 2020, a decrease from the prior year, primarily due to a decline in DRAM average selling prices, although NAND sales saw an increase driven by higher bit shipments.
The company navigated a challenging market environment impacted by COVID-19, implementing various measures to protect its workforce and ensure business continuity, including shifting supply to meet increased demand in areas like data centers and cloud servers. Despite the revenue dip, Micron continued to invest heavily in R&D and technology development, highlighting progress in advanced DRAM nodes (1Znm and 1-alpha nm) and 128-layer 3D NAND. The company also advanced its high-value solutions and expanded its product portfolio, particularly in the graphics and storage markets.
Significant capital expenditures were planned for the upcoming year, signaling continued investment in future growth and technological advancement. The company's financial position remained robust, with substantial cash and investments, and it continued its share repurchase program.
02—Key points
Key Highlights
- Total revenue for the fiscal year ended September 3, 2020, was $21.4 billion, a decrease from $23.4 billion in the prior year.
- Gross margin decreased to 31% from 46% in the prior year, primarily due to lower average selling prices.
- The company reported net income attributable to Micron of $2.69 billion, down from $6.31 billion in the prior year.
- Investments in R&D remained strong, with a focus on advanced DRAM nodes (1Znm and 1-alpha nm) and 128-layer 3D NAND technology.
- COVID-19 impacted demand, leading to shifts in supply towards data centers, cloud servers, and notebooks, while demand for smartphones and automotive products decreased.
- Micron acquired Intel's interest in the IMFT joint venture (now MTU) in October 2019.
- The company continued its share repurchase program, repurchasing $176 million in fiscal 2020 and $2.66 billion in fiscal 2019.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2020, Micron Technology Inc kept $0.13.
- Revenue$21.43B100.0%
- Cost of revenue−$14.88B69.4%
- Gross profit$6.55B30.6%
- Operating costs−$3.55B16.6%
- Operating income$3.00B14.0%
- Interest, other & tax−$316.0M1.5%
- Net income$2.69B12.5%
Where FY2020 revenue went
$21.43B- Cost of revenue: $14.88B, 69% of revenue
- Net income: $2.69B, 13% of revenue
- R&D: $2.60B, 12% of revenue
- SG&A: $881.0M, 4.1% of revenue
- Interest, other & tax: $316.0M, 1.5% of revenue
Kept 13% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2020filed October 19, 2020Financial Statements
FY2020 against FY2019
| Line item | FY2020FY2019 | Change |
|---|---|---|
| Revenue | $21.43B$23.41B | −8.4% |
| Cost of Revenue | $14.88B$12.70B | +17.2% |
| Gross Profit | $6.55B$10.70B | −38.8% |
| R&D Expenses | $2.60B$2.44B | +6.5% |
| SG&A Expenses | $881.00M$836.00M | +5.4% |
| Operating Income | $3.00B$7.38B | −59.3% |
| Interest Expense | $194.00M$128.00M | +51.6% |
| Net Income | $2.69B$6.31B | −57.4% |
| EPS (Basic) | $2.42$5.67 | −57.3% |
| EPS (Diluted) | $2.37$5.51 | −57.0% |
| Shares Outstanding (Basic) | 1.11B1.11B | −0.4% |
| Shares Outstanding (Diluted) | 1.13B1.14B | −1.0% |
05—Questions
Frequently Asked Questions
What was Micron's financial performance in fiscal year 2020?
Micron reported total revenue of $21.4 billion, a decrease from $23.4 billion in fiscal year 2019. Net income attributable to Micron was $2.69 billion, down from $6.31 billion in the prior year. The gross margin also declined to 31% from 46%, primarily due to lower average selling prices for DRAM and NAND products.
How did COVID-19 impact Micron's business?
The COVID-19 pandemic led to mixed impacts. While demand increased for products supporting a work-from-home economy (data centers, cloud servers, notebooks), demand decreased for products used in smartphones, consumer electronics, automotive, and enterprise markets. The company implemented various safety protocols and adjusted its supply to meet changing market demands.
What are Micron's key technology and product developments?
Micron continued to advance its technology roadmap, including the volume production of 1Znm DRAM and progress on its 1-alpha nm node. The company also began shipping products using its 128-layer 3D NAND with replacement gate technology. Efforts were focused on high-value solutions and expanding product offerings in areas like graphics (GDDR6X) and high-performance storage (X100 NVMe SSD).
What is the status of Micron's capital expenditures and share repurchases?
Micron planned significant capital expenditures for fiscal year 2021, estimating approximately $9 billion, focused on technology transitions and product enablement. The company also continued its share repurchase program, with $2.84 billion repurchased under its $10 billion authorization as of September 3, 2020.
06—Continue