01—Abstract
Summary
Summary of the 10-Q filed March 30, 2022. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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.
02—Key points
Key Highlights
- Revenue for the quarter reached $7.79 billion, a 25% increase year-over-year, driven by strong DRAM and NAND sales.
- Net 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.
- Gross margin improved significantly to 47% from 26% in the prior year's quarter, reflecting better pricing and cost efficiencies.
- Investments in Property, Plant, and Equipment remain substantial, with an estimated $11 billion to $12 billion planned for the full fiscal year 2022.
- The company repurchased $408 million of common stock in the quarter and declared a quarterly dividend of $0.10 per share.
- Revenue from DRAM products increased 29% year-over-year, while NAND product sales grew by 19%.
- The company achieved industry leadership in 176-layer NAND and 1α DRAM technologies, expanding its portfolio with new data center SSDs.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2022, Micron Technology Inc kept $0.30.
- Revenue$8.64B100.0%
- Cost of revenue−$4.61B53.3%
- Gross profit$4.04B46.7%
- Operating costs−$1.03B11.9%
- Operating income$3.00B34.8%
- Interest, other & tax−$378.0M4.4%
- Net income$2.63B30.4%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2022filed March 30, 2022Financial Statements
Q3 FY2022 against Q3 FY2021
| Line item | Q3 FY2022Q3 FY2021 | Change |
|---|---|---|
| Revenue | $8.64B$7.42B | +16.4% |
| Cost of Revenue | $4.61B$4.30B | +7.2% |
| Gross Profit | $4.04B$3.13B | +29.1% |
| R&D Expenses | $773.00M$670.00M | +15.4% |
| SG&A Expenses | $264.00M$230.00M | +14.8% |
| Operating Income | $3.00B$1.80B | +67.0% |
| Interest Expense | $44.00M$46.00M | −4.3% |
| Net Income | $2.63B$1.74B | +51.4% |
| EPS (Basic) | $2.36$1.55 | +52.3% |
| EPS (Diluted) | $2.34$1.52 | +53.9% |
| Shares Outstanding (Basic) | 1.11B1.12B | −0.8% |
| Shares Outstanding (Diluted) | 1.12B1.15B | −2.1% |
05—Questions
Frequently Asked Questions
What was Micron's revenue and net income performance in this quarter compared to the prior year?
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.
How did the DRAM and NAND segments perform?
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.
What is the company's outlook on capital expenditures and investments?
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.
Are there any significant legal or regulatory matters impacting the company?
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.
06—Continue