Early Access

10-QPeriod: Q3 FY2021

MICRON TECHNOLOGY INC Quarterly Report for Q2 Ended Mar 4, 2021

Filed April 1, 2021For Securities:MU

Summary

Micron Technology, Inc. reported strong revenue growth for the second quarter of fiscal year 2021, with a significant increase of 30% year-over-year, reaching $6.24 billion. This growth was primarily driven by robust demand and increased bit shipments across both DRAM and NAND products, particularly in the mobile, server, automotive, and networking markets. Despite the revenue surge, the company experienced a dip in gross margin to 26% from 30% in the prior quarter. This was largely attributed to one-time impacts from adopting the FIFO inventory costing method and changes in inventory cost absorption, resulting in a $293 million increase in cost of goods sold. The company also announced the cessation of development for 3D XPoint technology and the planned sale of its Lehi, Utah facility, which impacted inventory write-downs and operating income. Looking ahead, Micron anticipates continued investment in capital expenditures, estimated at $9 billion for fiscal year 2021, to support technology transitions and product enablement.

Financial Highlights

50 data points
Beta

Revenue

$7.42B

0.4% Gross Margin

Net Income

$1.74B

0.2% Net Margin

EPS (Diluted)

$1.52

Total Assets

$55.94B

Cash & Equivalents

$7.76B

Free Cash Flow

$1.30B

Financial Statements
Beta
Revenue$7.42B
Cost of Revenue$4.30B
Gross Profit$3.13B
R&D Expenses$670.00M
SG&A Expenses$230.00M
Operating Income$1.80B
Interest Expense$46.00M
Net Income$1.74B
EPS (Basic)$1.55
EPS (Diluted)$1.52
Shares Outstanding (Basic)1.12B
Shares Outstanding (Diluted)1.15B

Key Highlights

  • 1Revenue increased by 30% year-over-year to $6.24 billion, driven by strong DRAM and NAND sales.
  • 2Gross margin decreased to 26% due to one-time inventory accounting changes (FIFO adoption) and cost absorption impacts, which increased COGS by $293 million.
  • 3Micron is ceasing development of 3D XPoint technology and plans to sell its Lehi, Utah facility, resulting in a $49 million inventory write-down.
  • 4Capital expenditures are projected to be approximately $9 billion for fiscal year 2021, focusing on technology transitions and product enablement.
  • 5Operating income saw a substantial increase of 49% year-over-year, reaching $663 million, despite the gross margin pressure.
  • 6The Compute and Networking Business Unit (CNBU) and Mobile Business Unit (MBU) showed significant revenue and operating income growth.
  • 7The company ended the quarter with a strong cash and investments balance of $8.50 billion.

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