01—Abstract
Summary
Summary of the 10-Q filed January 8, 2021. Cited figures are marked; the original filing is the authoritative source.
Micron Technology Inc. reported strong financial results for the first quarter of fiscal year 2021, ending December 3, 2020.
Revenue increased by 12% year-over-year to $5.77 billiona, driven by robust growth in both DRAM and NAND product sales. This top-line growth, coupled with improved manufacturing cost efficiencies, led to a significant increase in operating income and net income. Diluted earnings per share rose to $0.71, up from $0.43 in the prior year's comparable quarter, demonstrating improved profitability.
The company's balance sheet remains solid with total assets of $53.69 billionb. While cash and equivalents saw a decrease from the prior quarter, this was largely due to significant capital expenditures for property, plant, and equipment, which are crucial for future technology transitions and product enablement. Management anticipates continued strength in demand for memory and storage solutions, supporting positive future outlooks, though the company remains mindful of ongoing market volatility and global economic factors.
02—Key points
Key Highlights
- Revenue for the first quarter of fiscal year 2021 increased 12% year-over-year to $5.77 billion, compared to $5.14 billion in the prior year's first quarter.
- Gross margin improved to 30% from 27% in the first quarter of fiscal year 2020, indicating better cost management and pricing power.
- Operating income more than doubled year-over-year, reaching $866 million, up from $518 million in the prior year's first quarter.
- Net income attributable to Micron grew substantially to $803 million, or $0.71 per diluted share, compared to $491 million, or $0.43 per diluted share, in the prior year's first quarter.
- Capital expenditures were substantial at $2.74 billion for the quarter, reflecting significant investment in property, plant, and equipment for future growth and technology advancements.
- The Compute and Networking Business Unit (CNBU) showed strong revenue growth of 29% year-over-year, highlighting demand in client, graphics, and cloud server markets.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2021, Micron Technology Inc kept $0.10.
- Revenue$6.24B100.0%
- Cost of revenue−$4.59B73.6%
- Gross profit$1.65B26.4%
- Operating costs−$986.0M15.8%
- Operating income$663.0M10.6%
- Interest, other & tax−$60.0M1.0%
- Net income$603.0M9.7%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2021filed January 8, 2021Financial Statements
Q2 FY2021 against Q2 FY2020
| Line item | Q2 FY2021Q2 FY2020 | Change |
|---|---|---|
| Revenue | $6.24B$4.80B | +30.0% |
| Cost of Revenue | $4.59B$3.44B | +33.3% |
| Gross Profit | $1.65B$1.35B | +21.7% |
| R&D Expenses | $641.00M$681.00M | −5.9% |
| SG&A Expenses | $214.00M$223.00M | −4.0% |
| Operating Income | $663.00M$440.00M | +50.7% |
| Interest Expense | $42.00M$46.00M | −8.7% |
| Net Income | $603.00M$405.00M | +48.9% |
| EPS (Basic) | $0.54$0.37 | +45.9% |
| EPS (Diluted) | $0.53$0.36 | +47.2% |
| Shares Outstanding (Basic) | 1.12B1.11B | +0.8% |
| Shares Outstanding (Diluted) | 1.14B1.13B | +1.0% |
05—Questions
Frequently Asked Questions
What was Micron's revenue performance in the first quarter of fiscal year 2021?
Micron Technology Inc. reported total revenue of $5.77 billion for the first quarter of fiscal year 2021, an increase of 12% compared to $5.14 billion in the first quarter of fiscal year 2020. This growth was driven by increases in both DRAM and NAND sales.
How did Micron's profitability change year-over-year?
Micron experienced a significant improvement in profitability. Gross margin increased to 30% in Q1 FY21 from 27% in Q1 FY20. Operating income more than doubled to $866 million, and net income attributable to Micron rose to $803 million, resulting in diluted earnings per share of $0.71, up from $0.43 in the prior year's quarter.
What is the company's outlook on capital expenditures?
Micron is making significant investments in its future, estimating capital expenditures for property, plant, and equipment to be approximately $9 billion for fiscal year 2021, weighted towards the first half of the year. These expenditures are focused on technology transitions and product enablement.
Were there any significant impacts from the COVID-19 pandemic on Micron's operations?
Micron's report acknowledges the ongoing impact of COVID-19, noting proactive measures to safeguard employees and ensure business continuity. While operations are largely at normal capacity, the company highlights potential volatility in demand and supply chains. The report indicates that despite these challenges, the company has managed to maintain operations and respond to market changes, such as shifting supply to meet increased demand in certain segments.
06—Continue