01—Abstract
Summary
Summary of the 10-Q filed December 19, 2018. Cited figures are marked; the original filing is the authoritative source.
Micron Technology, Inc. reported strong financial results for the quarter ended November 29, 2018, showcasing robust revenue growth and profitability.
Revenue reached $7.91 billiona, a significant increase of 16% compared to the same period last year, driven by strong demand across key markets for both DRAM and NAND products. The company's strategic focus on high-value products featuring advanced technologies like 1Xnm DRAM and 64-layer 3D NAND proved effective, contributing to an improved gross margin of 58% and a healthy operating income of $3.76 billion. Net income attributable to Micron surged to $3.29 billion, translating to diluted earnings per share of $2.81, up from $2.19 in the prior year's comparable quarter.
This performance reflects operational efficiency and favorable market conditions for memory and storage solutions. The company also highlighted its ongoing commitment to shareholder returns, announcing a significant $10 billionb stock repurchase program and executing substantial repurchases in the current quarter. Micron continues to invest in R&D and capital expenditures, signaling confidence in future growth and market leadership, while also managing potential risks related to market volatility and competition.
02—Key points
Key Highlights
- Revenue increased by 16% year-over-year to $7.91 billion, driven by strong performance in both DRAM and NAND product segments.
- Gross margin improved to 58% from 55% in the prior year's quarter, indicating effective cost management and favorable product mix.
- Net income attributable to Micron saw a substantial increase to $3.29 billion, resulting in diluted EPS of $2.81, up from $2.19 year-over-year.
- The company announced a new $10 billion stock repurchase program, demonstrating a commitment to returning capital to shareholders.
- Capital expenditures for property, plant, and equipment are projected to be between $9 billion and $9.5 billion for fiscal 2019, reflecting significant investment in future growth and technology.
- Micron is exercising its option to acquire Intel's interest in their IMFT joint venture, signaling a strategic shift in their collaboration on 3D XPoint technology.
- Despite strong performance, the company notes potential market headwinds, including customer inventory corrections and CPU shortages impacting certain segments like Compute and Networking (CNBU).
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2019, Micron Technology Inc kept $0.42.
- Revenue$7.91B100.0%
- Cost of revenue−$3.30B41.7%
- Gross profit$4.62B58.3%
- Operating costs−$856.0M10.8%
- Operating income$3.76B47.5%
- Interest, other & tax−$466.0M5.9%
- Net income$3.29B41.6%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2019filed December 19, 2018Financial Statements
Q1 FY2019 against Q1 FY2018
| Line item | Q1 FY2019Q1 FY2018 | Change |
|---|---|---|
| Revenue | $7.91B$6.80B | +16.3% |
| Cost of Revenue | $3.30B$3.06B | +7.9% |
| Gross Profit | $4.62B$3.75B | +23.2% |
| R&D Expenses | $611.00M$448.00M | +36.4% |
| SG&A Expenses | $209.00M$191.00M | +9.4% |
| Operating Income | $3.76B$3.10B | +21.4% |
| Interest Expense | $33.00M$124.00M | −73.4% |
| Net Income | $3.29B$2.68B | +23.0% |
| EPS (Basic) | $2.91$2.36 | +23.3% |
| EPS (Diluted) | $2.81$2.19 | +28.3% |
| Shares Outstanding (Basic) | 1.13B1.13B | −0.1% |
| Shares Outstanding (Diluted) | 1.17B1.23B | −4.2% |
05—Questions
Frequently Asked Questions
What is Micron's revenue and profitability performance for this quarter compared to the same quarter last year?
Micron reported revenue of $7.91 billion for the quarter ended November 29, 2018, a 16% increase compared to $6.80 billion in the same quarter last year. Net income attributable to Micron also increased significantly to $3.29 billion from $2.68 billion, leading to a higher diluted earnings per share of $2.81 compared to $2.19 in the prior year.
How is Micron planning to return capital to shareholders?
Micron's Board of Directors authorized a discretionary repurchase of up to $10 billion of its outstanding common stock, beginning in fiscal 2019. In the first quarter of fiscal 2019, the company repurchased approximately $1.80 billion worth of shares.
What is the company's outlook on capital expenditures and strategic investments?
Micron estimates capital expenditures for property, plant, and equipment to be between $9 billion and $9.5 billion for fiscal year 2019. This significant investment is focused on technology transitions and product enablement, indicating a strong commitment to future growth and innovation.
What are the key developments regarding Micron's joint venture with Intel?
Micron announced its intent to exercise its option to acquire Intel's interest in their IMFT joint venture. While they will no longer jointly develop subsequent generations of 3D XPoint technology, IMFT will continue to manufacture memory based on this technology for both members. This move signifies a strategic adjustment in their partnership.
06—Continue