Summary
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 billion, 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% 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 billion for fiscal year 2024. While the financial performance shows signs of recovery, persistent challenges such as pricing volatility and operational costs remain.
Financial Highlights
52 data points| Revenue | $4.73B |
| Cost of Revenue | $4.76B |
| Gross Profit | -$35.00M |
| R&D Expenses | $845.00M |
| SG&A Expenses | $263.00M |
| Operating Income | -$1.13B |
| Interest Expense | $132.00M |
| Net Income | -$1.23B |
| EPS (Basic) | $-1.12 |
| EPS (Diluted) | $-1.12 |
| Shares Outstanding (Basic) | 1.10B |
| Shares Outstanding (Diluted) | 1.10B |
Key Highlights
- 1Revenue increased 18% sequentially to $4.726 billion, driven by strong DRAM and NAND sales, indicating a potential market recovery.
- 2Net 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.
- 3Gross margin improved to -1% from -11% in the prior quarter, reflecting better average selling prices and improved industry supply-demand balance.
- 4Significant 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.
- 5The company is actively managing inventory by reducing capital expenditures and wafer starts to below peak levels.
- 6Operating 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.
- 7The company declared and paid a quarterly dividend of $0.115 per share, signaling continued commitment to returning capital to shareholders.