Summary
Micron Technology Inc. (MU) reported its second quarter fiscal year 2020 results for the period ending February 27, 2020. The company experienced a significant decline in revenue compared to the prior year, with total revenue decreasing by 18% year-over-year to $4.797 billion. This decline was primarily driven by lower average selling prices (ASPs) for DRAM products, although NAND product sales saw a modest increase due to higher ASPs and bit shipments. Despite the revenue challenges, gross margin improved slightly quarter-over-quarter to 28%, largely due to better performance in NAND. However, year-over-year, gross margin contracted significantly from 49% to 28%. Operating income also saw a substantial decrease, reflecting the challenging market conditions. The company is also navigating the early stages of the COVID-19 pandemic, acknowledging its potential to impact future demand and operations.
Financial Highlights
51 data points| Revenue | $4.80B |
| Cost of Revenue | $3.44B |
| Gross Profit | $1.35B |
| R&D Expenses | $681.00M |
| SG&A Expenses | $223.00M |
| Operating Income | $440.00M |
| Interest Expense | $46.00M |
| Net Income | $405.00M |
| EPS (Basic) | $0.37 |
| EPS (Diluted) | $0.36 |
| Shares Outstanding (Basic) | 1.11B |
| Shares Outstanding (Diluted) | 1.13B |
Key Highlights
- 1Revenue for the second quarter of fiscal year 2020 was $4.797 billion, a decrease of 18% compared to $5.835 billion in the second quarter of fiscal year 2019.
- 2Gross margin improved to 28% compared to 27% in the prior quarter, but significantly declined from 49% in the same quarter last year.
- 3Operating income for the quarter was $440 million, a sharp decrease from $1.957 billion in the prior year's comparable quarter.
- 4DRAM revenue decreased by 26% year-over-year, while NAND revenue increased by 9% year-over-year.
- 5The company adopted ASC 842, the new lease accounting standard, which resulted in the recognition of $567 million in operating lease liabilities and right-of-use assets.
- 6Micron announced an estimated capital expenditure range of $7 billion to $8 billion for fiscal year 2020.
- 7The company is actively monitoring the impact of the COVID-19 pandemic and anticipates potential negative impacts on business activity and demand in certain sectors, while noting demand increases in others like server DRAM and NAND.