01—Abstract
Summary
Summary of the 10-Q filed December 21, 2023. Cited figures are marked; the original filing is the authoritative source.
Micron Technology, Inc. reported its financial results for the first quarter of fiscal year 2024, ending November 29, 2023.
The company experienced a significant revenue increase of 18% sequentially to $4.726 billiona, driven by growth in both DRAM and NAND product sales. This marks a positive shift from the challenging market conditions of the previous year. Despite the revenue growth, the company reported a net loss of $1.234 billion for the quarter.
The gross margin showed improvement, moving from a negative 11%b in the prior quarter to negative 1%, indicating early signs of recovery in pricing and margins as demand begins to normalize and industry supply discipline improves. Key factors influencing the quarter include increasing demand, particularly for AI-related applications, and customers working through their inventory levels. The company is strategically managing capital expenditures and wafer starts to control inventory.
Micron is also making significant investments in future capacity, particularly in the United States, with plans for new DRAM fabrication facilities in Idaho and New York, contingent on CHIPS Act support. The company reiterated its expectation for capital expenditures in the range of $7.5 billion to $8.0 billionc for fiscal year 2024. While the financial performance shows signs of recovery, persistent challenges such as pricing volatility and operational costs remain.
02—Key points
Key Highlights
- Revenue increased 18% sequentially to $4.726 billion, driven by strong DRAM and NAND sales, indicating a potential market recovery.
- Net loss for the quarter was $1.234 billion, a significant improvement from the previous quarter's loss of $1.430 billion, but still a loss.
- Gross margin improved to -1% from -11% in the prior quarter, reflecting better average selling prices and improved industry supply-demand balance.
- Significant investments are planned for new U.S. fabrication facilities, contingent on CHIPS Act support, with capital expenditures estimated between $7.5 billion and $8.0 billion for FY2024.
- The company is actively managing inventory by reducing capital expenditures and wafer starts to below peak levels.
- Operating expenses, including R&D and SG&A, saw increases primarily due to higher employee compensation, but R&D expenses remained relatively flat year-over-year.
- The company declared and paid a quarterly dividend of $0.115 per share, signaling continued commitment to returning capital to shareholders.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2024, Micron Technology Inc lost $0.26.
- Revenue$4.73B100.0%
- Cost of revenue−$4.76B100.7%
- Gross profit−$35.0M0.7%
- Operating costs−$1.09B23.1%
- Operating income−$1.13B23.9%
- Interest, other & tax−$106.0M2.2%
- Net income−$1.23B26.1%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed December 21, 2023Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $4.73B$4.08B | +15.7% |
| Cost of Revenue | $4.76B$3.19B | +49.2% |
| Gross Profit | -$35.00M$893.00M | −103.9% |
| R&D Expenses | $845.00M$849.00M | −0.5% |
| SG&A Expenses | $263.00M$251.00M | +4.8% |
| Operating Income | -$1.13B-$209.00M | −439.7% |
| Interest Expense | $132.00M$51.00M | +158.8% |
| Net Income | -$1.23B-$195.00M | −532.8% |
| EPS (Basic) | $-1.12$-0.18 | −522.2% |
| EPS (Diluted) | $-1.12$-0.18 | −522.2% |
| Shares Outstanding (Basic) | 1.10B1.09B | +0.9% |
| Shares Outstanding (Diluted) | 1.10B1.09B | +0.9% |
05—Questions
Frequently Asked Questions
What was Micron's revenue performance in the first quarter of fiscal year 2024?
Micron reported revenue of $4.726 billion for the first quarter of fiscal year 2024, an increase of 18% compared to the fourth quarter of fiscal year 2023. This growth was driven by higher sales volumes and improved average selling prices for both DRAM and NAND products, signaling a positive trend in the memory market.
Did Micron return to profitability in this quarter?
No, Micron reported a net loss of $1.234 billion for the first quarter of fiscal year 2024. While this represents an improvement from the net loss of $1.430 billion in the prior quarter, the company is still operating at a loss. The gross margin, however, showed improvement, moving from negative 11% to negative 1%.
What is Micron's outlook on capital expenditures and future investments?
Micron estimates capital expenditures for fiscal year 2024 to be in the range of $7.5 billion to $8.0 billion. The company is making significant investments in future capacity, including plans for new leading-edge memory fabrication facilities in the United States, contingent on government support such as the CHIPS Act.
How is Micron managing its inventory levels?
In response to challenging market conditions and elevated inventory levels, Micron has reduced capital expenditures and wafer starts for both DRAM and NAND. The company expects wafer starts to remain below peak capacity levels to manage inventory down and control supply. This strategy also led to period costs from fabrication facility underutilization, which are expected to decrease in the coming quarters.
06—Continue