Micron Technology, Inc. Q2 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Overview

  • Revenue reached approximately $3.7 billion, down 10% sequentially and 53% year-over-year, in line with prior guidance.
  • The company emphasized that the memory and storage industry is in its worst downturn in 13 years due to exceptionally weak pricing.
  • Micron implemented significant supply cuts, CapEx reductions, and a company-wide workforce reduction now approaching 15%.
  • Margin and EPS came in within guidance when excluding inventory write-downs.
  • Management believes customer inventories have improved across several markets, and the company is nearing a return to sequential revenue growth.

Key Financial Results

  • Total revenue: $3.7 billion, down from $4.1 billion in fiscal Q1 and down from $7.8 billion in the prior year.
  • DRAM revenue: $2.7 billion (74% of total), down 4% sequentially. Bit shipments increased mid-teens %, while ASPs fell ~20%.
  • NAND revenue: $885 million (24% of total), down 20% sequentially. Bit shipments grew mid- to high-single digits; ASPs fell mid-20%.
  • Gross margin: -31.4%, driven by a $1.4 billion inventory write-down (38.7 percentage point impact). Prior quarter gross margin was -2%; prior year was +47.2%.
  • Non-GAAP EPS: -$1.91 vs. -$0.04 in prior quarter and +$2.14 in prior year. Includes $1.34 per share impact from inventory write-downs.
  • Cash from operations: $343 million; free cash flow: -$1.8 billion.

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Operator: Thank you for standing by, and welcome to Micron's Second Quarter 2023 Financial Call. [Operator Instructions]. I would now like to introduce your host for today's program, Farhan Ahmad, Vice President, Investor Relations. Please go ahead, sir. Farhan Ahmad: Thank you, and welcome to Micron Technology's Fiscal Second Quarter 2023 Financial Conference Call. On the call with me today are Sanjay Mehrotra, our President and CEO, and Mark Murphy, our CFO. Today's call is being webcast from our Investor Relations site at investors.micron.com, including audio and slides. In addition, the press release detailing our quarterly results has been posted on the website, along with the prepared remarks for this call. Today's discussion of financial results is presented on a non-GAAP financial basis, unless otherwise specified. A reconciliation of GAAP to non-GAAP financial measures may be found on our website. We encourage you to visit our website at micron.com throughout the quarter for the most current information on the company, including information on financial conferences that we may be attending. You can also follow us on Twitter, @MicronTech. As a reminder, the matters we are discussing today include forward-looking statements regarding market demand and supply, our expected results and other matters. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from the statements made today. We refer you to

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