Summary
Micron Technology, Inc. reported a net loss of $195 million ($0.18 per diluted share) for the first quarter of fiscal year 2023, a significant downturn compared to the $2,306 million net income ($2.04 per diluted share) in the same period last year. This decline is primarily attributed to a sharp decrease in revenue, down 47% year-over-year to $4,085 million, driven by falling average selling prices and reduced bit shipments for both DRAM and NAND products. The company is experiencing a challenging industry environment characterized by global macroeconomic issues and customer inventory adjustments, leading to reduced demand and pricing pressures. In response to these market conditions, Micron is implementing cost-reduction measures, including workforce reductions, and has decreased wafer starts and capital expenditures. Despite the current headwinds, the company is continuing its strategic investments in new fabrication facilities in the U.S. to support long-term demand. The company ended the quarter with a strong cash and investments balance of $12.01 billion, providing liquidity to navigate the current market downturn.
Financial Highlights
51 data points| Revenue | $3.69B |
| Cost of Revenue | $4.90B |
| Gross Profit | -$1.21B |
| R&D Expenses | $788.00M |
| SG&A Expenses | $231.00M |
| Operating Income | -$2.30B |
| Interest Expense | $89.00M |
| Net Income | -$2.31B |
| EPS (Basic) | $-2.12 |
| EPS (Diluted) | $-2.12 |
| Shares Outstanding (Basic) | 1.09B |
| Shares Outstanding (Diluted) | 1.09B |
Key Highlights
- 1Revenue declined sharply by 47% year-over-year to $4,085 million, signaling a significant market downturn.
- 2The company reported a net loss of $195 million, a substantial reversal from a net income of $2,306 million in the prior year's quarter.
- 3Both DRAM and NAND product sales saw significant year-over-year decreases due to falling average selling prices and reduced bit shipments.
- 4Gross margin compressed significantly to 22% from 46% year-over-year, reflecting the challenging pricing environment.
- 5Micron is undertaking cost-saving initiatives, including a 10% workforce reduction and reduced wafer starts/capital expenditures.
- 6The company ended the quarter with $12.01 billion in cash and marketable investments, indicating strong liquidity.
- 7Significant long-term investments in new U.S. fabrication facilities for future capacity expansion are ongoing.