01—Abstract
Summary
Summary of the 10-K filed October 8, 2021. Cited figures are marked; the original filing is the authoritative source.
Micron Technology Inc. (MU) reported strong performance in its fiscal year ending September 1, 2021, with total revenue increasing by 29% to $27.7 billiona, driven by significant growth in both DRAM and NAND sales.
The company achieved industry leadership in its 176-layer NAND and 1α (1-alpha) DRAM technologies, launching products based on these advancements. This technological progress, coupled with strong demand in key markets like cloud servers and mobile devices due to evolving work-from-home and 5G trends, contributed to a notable improvement in gross margin to 38%. The company is strategically focusing on memory and storage innovations, exemplified by its decision to cease development of 3D XPoint technology and its agreement to sell the associated Lehi facility for $900 millionb.
Despite ongoing supply chain constraints and the general uncertainty surrounding the COVID-19 pandemic, Micron demonstrated resilience. The company continued its capital expenditure program, with significant investments planned for next-generation technologies and capacity expansion, indicating a commitment to future growth and technological advancement in the dynamic semiconductor industry.
02—Key points
Key Highlights
- Revenue increased by 29% to $27.7 billion in fiscal year 2021, primarily driven by strong DRAM and NAND sales.
- Micron achieved industry leadership with its 176-layer NAND and 1α (1-alpha) DRAM technologies, introducing products based on these advancements.
- Gross margin improved significantly to 38% in fiscal year 2021, up from 31% in fiscal year 2020, reflecting higher average selling prices for DRAM and cost reductions.
- The company is divesting its 3D XPoint technology and related Lehi facility for $900 million, sharpening its focus on core memory and storage solutions.
- Strong demand was observed in key markets such as cloud servers and mobile devices, fueled by work-from-home trends and 5G adoption.
- Micron announced a significant capital expenditure plan of $11 billion to $12 billion for fiscal year 2022, focusing on next-generation NAND and DRAM, and EUV lithography.
- The company managed ongoing supply chain constraints and the impacts of the COVID-19 pandemic while maintaining operational capacity.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2021, Micron Technology Inc kept $0.21.
- Revenue$27.70B100.0%
- Cost of revenue−$17.28B62.4%
- Gross profit$10.42B37.6%
- Operating costs−$4.14B14.9%
- Operating income$6.28B22.7%
- Interest, other & tax−$422.0M1.5%
- Net income$5.86B21.2%
Where FY2021 revenue went
$27.70B- Cost of revenue: $17.28B, 62% of revenue
- Net income: $5.86B, 21% of revenue
- R&D: $2.66B, 9.6% of revenue
- SG&A: $894.0M, 3.2% of revenue
- Other operating costs: $583.0M, 2.1% of revenue
- Interest, other & tax: $422.0M, 1.5% of revenue
Kept 21% as net incomeOther operating costs $583.0M · 2.1%Interest, other & tax $422.0M · 1.5%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2021filed October 8, 2021Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $27.70B$21.43B | +29.3% |
| Cost of Revenue | $17.28B$14.88B | +16.1% |
| Gross Profit | $10.42B$6.55B | +59.1% |
| R&D Expenses | $2.66B$2.60B | +2.4% |
| SG&A Expenses | $894.00M$881.00M | +1.5% |
| Operating Income | $6.28B$3.00B | +109.2% |
| Interest Expense | $183.00M$194.00M | −5.7% |
| Net Income | $5.86B$2.69B | +118.1% |
| EPS (Basic) | $5.23$2.42 | +116.1% |
| EPS (Diluted) | $5.14$2.37 | +116.9% |
| Shares Outstanding (Basic) | 1.12B1.11B | +0.9% |
| Shares Outstanding (Diluted) | 1.14B1.13B | +0.9% |
05—Questions
Frequently Asked Questions
What were the main drivers of Micron's revenue growth in fiscal year 2021?
Micron's revenue grew by 29% to $27.7 billion in fiscal year 2021. This growth was primarily driven by increases in both DRAM and NAND sales. DRAM sales increased by 38% due to higher bit shipments and a modest increase in average selling prices, while NAND sales rose by 14% driven by increased bit shipments, despite a slight decline in average selling prices.
What strategic decisions did Micron make regarding its product portfolio and technology development?
Micron achieved technological leadership with its 176-layer NAND and 1α (1-alpha) DRAM technologies, launching volume production of products based on these advancements. Strategically, the company decided to cease development of 3D XPoint technology due to insufficient market validation for large-scale commercialization and entered into an agreement to sell its Lehi facility, which was dedicated to 3D XPoint production, for $900 million.
How did the company manage supply chain challenges and the COVID-19 pandemic?
Micron implemented proactive preventative protocols to safeguard its employees and ensure business continuity amidst the COVID-19 pandemic. While facing supply chain constraints for certain IC components that impacted bit shipments, the company continued to operate its global manufacturing sites at near full capacity. They also added assembly and test capacity and worked closely with customers to align supply with changing market conditions.
What are Micron's key capital expenditure plans for the near future?
Micron plans to invest between $11 billion and $12 billion in capital expenditures for fiscal year 2022. These investments are targeted towards the continued transition to 176-layer NAND, enabling pilot lines for next-generation NAND and DRAM, and infrastructure for the introduction of EUV lithography, underscoring a commitment to advancing technology and capacity.
06—Continue