10-QPeriod: Q3 FY2022

MICRON TECHNOLOGY INC Quarterly Report for Q2 Ended Mar 3, 2022

Filed March 30, 2022For Securities:MU

Summary

Micron Technology, Inc. reported robust financial performance for the quarter ended March 3, 2022, with significant year-over-year growth in revenue and profitability. Total revenue reached $7.79 billion, a 25% increase compared to the same period in the prior year, driven by strong demand and pricing improvements in both DRAM and NAND segments. Net income surged to $2.26 billion, translating to a diluted EPS of $2.00, a substantial improvement from $0.53 in the prior year's quarter. This strong financial outcome reflects the company's successful execution in delivering advanced memory and storage solutions and navigating a dynamic market environment. The company continues to invest heavily in research and development and capital expenditures to maintain its technological leadership and expand capacity. While facing intense industry competition and macroeconomic uncertainties, Micron's strategic focus on high-performance products and key markets such as data centers and the intelligent edge positions it for continued growth. The company's financial health remains solid, with substantial cash reserves and a clear strategy for capital allocation, including share repurchases and dividends, underscoring its commitment to shareholder value.

Financial Highlights

52 data points
Beta

Revenue

$8.64B

46.7% Gross Margin

Net Income

$2.63B

30.4% Net Margin

EPS (Diluted)

$2.34

Total Assets

$65.30B

Cash & Equivalents

$9.26B

Free Cash Flow

$1.26B

Financial Statements
Beta
Revenue$8.64B
Cost of Revenue$4.61B
Gross Profit$4.04B
R&D Expenses$773.00M
SG&A Expenses$264.00M
Operating Income$3.00B
Interest Expense$44.00M
Net Income$2.63B
EPS (Basic)$2.36
EPS (Diluted)$2.34
Shares Outstanding (Basic)1.11B
Shares Outstanding (Diluted)1.12B

Key Highlights

  • 1Revenue for the quarter reached $7.79 billion, a 25% increase year-over-year, driven by strong DRAM and NAND sales.
  • 2Net income more than quadrupled year-over-year, reaching $2.26 billion, with diluted EPS of $2.00 compared to $0.53 in the prior year.
  • 3Gross margin improved significantly to 47% from 26% in the prior year's quarter, reflecting better pricing and cost efficiencies.
  • 4Investments in Property, Plant, and Equipment remain substantial, with an estimated $11 billion to $12 billion planned for the full fiscal year 2022.
  • 5The company repurchased $408 million of common stock in the quarter and declared a quarterly dividend of $0.10 per share.
  • 6Revenue from DRAM products increased 29% year-over-year, while NAND product sales grew by 19%.
  • 7The company achieved industry leadership in 176-layer NAND and 1α DRAM technologies, expanding its portfolio with new data center SSDs.

Frequently Asked Questions

Micron reported a 25% year-over-year increase in revenue to $7.79 billion for the quarter ended March 3, 2022. Net income saw a significant surge of over 275%, reaching $2.26 billion, or $2.00 per diluted share, compared to $0.53 per diluted share in the same period last year.

Both DRAM and NAND segments showed strong growth. DRAM revenue increased by 29% year-over-year due to higher average selling prices and bit shipments. NAND revenue grew by 19% year-over-year, driven by increased average selling prices and bit shipments.

Micron continues to invest significantly in its future, estimating capital expenditures for property, plant, and equipment to be between $11 billion and $12 billion for the full fiscal year 2022. These investments are focused on next-generation NAND and DRAM technologies and infrastructure.

The company is involved in ongoing legal proceedings, primarily related to patent infringement claims and antitrust matters. While these are significant, the company typically states that it cannot predict the outcome or estimate potential losses, but they are not currently expected to have a material adverse effect on the business. Investors should review the 'Contingencies' and 'Risk Factors' sections of the filing for detailed information.