Micron delivers report fiscal Q1 income, pushed by sturdy AI demand
Data middle income grew over 40% sequentially and over 400% yr over yr
BOISE, Idaho, Dec. 18, 2024 (GLOBE NEWSWIRE) — Micron Technology, Inc. (Nasdaq: MU) in the present day introduced outcomes for its first quarter of fiscal 2025, which ended November 28, 2024.
Fiscal Q1 2025 highlights
- Revenue of $8.71 billion versus $7.75 billion for the prior quarter and $4.73 billion for a similar interval final yr
- GAAP internet earnings of $1.87 billion, or $1.67 per diluted share
- Non-GAAP internet earnings of $2.04 billion, or $1.79 per diluted share
- Operating money circulate of $3.24 billion versus $3.41 billion for the prior quarter and $1.40 billion for a similar interval final yr
“Micron delivered a report quarter, and our information middle income surpassed 50% of our whole income for the primary time,” mentioned Sanjay Mehrotra, President and CEO of Micron Technology. “While consumer-oriented markets are weaker within the close to time period, we anticipate a return to progress within the second half of our fiscal yr. We proceed to achieve share within the highest margin and strategically essential components of the market and are exceptionally nicely positioned to leverage AI-driven progress to create substantial worth for all stakeholders.”
| Quarterly Financial Results | |||||||||||||||||||
| (in tens of millions, besides per share quantities) | GAAP(1) | Non-GAAP(2) | |||||||||||||||||
| FQ1-25 | FThis fall-24 | FQ1-24 | FQ1-25 | FThis fall-24 | FQ1-24 | ||||||||||||||
| Revenue | $ | 8,709 | $ | 7,750 | $ | 4,726 | $ | 8,709 | $ | 7,750 | $ | 4,726 | |||||||
| Gross margin | 3,348 | 2,737 | (35 | ) | 3,441 | 2,826 | 37 | ||||||||||||
| % of income | 38.4 | % | 35.3 | % | (0.7 | %) | 39.5 | % | 36.5 | % | 0.8 | % | |||||||
| Operating bills | 1,174 | 1,215 | 1,093 | 1,047 | 1,081 | 992 | |||||||||||||
| Operating earnings (loss) | 2,174 | 1,522 | (1,128 | ) | 2,394 | 1,745 | (955 | ) | |||||||||||
| % of income | 25.0 | % | 19.6 | % | (23.9 | %) | 27.5 | % | 22.5 | % | (20.2 | %) | |||||||
| Net earnings (loss) | 1,870 | 887 | (1,234 | ) | 2,037 | 1,342 | (1,048 | ) | |||||||||||
| Diluted earnings (loss) per share | 1.67 | 0.79 | (1.12 | ) | 1.79 | 1.18 | (0.95 | ) | |||||||||||
Investments in capital expenditures, internet(2) had been $3.13 billion for the primary quarter of 2025, which resulted in adjusted free money flows(2) of $112 million for the primary quarter of 2025. Micron ended the quarter with money, marketable investments, and restricted money of $8.75 billion. On December 18, 2024, Micron’s Board of Directors declared a quarterly dividend of $0.115 per share, payable in money on January 15, 2025, to shareholders of report as of the shut of enterprise on December 30, 2024.
Business Outlook
The following desk presents Micron’s steerage for the second quarter of 2025:
| FQ2-25 | GAAP(1) Outlook | Non-GAAP(2) Outlook |
| Revenue | $7.90 billion ± $200 million | $7.90 billion ± $200 million |
| Gross margin | 37.5% ± 1.0% | 38.5% ± 1.0% |
| Operating bills | $1.24 billion ± $15 million | $1.10 billion ± $15 million |
| Diluted earnings per share | $1.26 ± $0.10 | $1.43 ± $0.10 |
Further data concerning Micron’s enterprise outlook is included within the ready remarks and slides, which have been posted at traders.micron.com.
Investor Webcast
Micron will host a convention name on Wednesday, December 18, 2024 at 2:30 p.m. Mountain Time to debate its first quarter monetary outcomes and supply forward-looking steerage for its second quarter. A reside webcast of the decision might be obtainable on-line at traders.micron.com. A webcast replay might be obtainable for one yr after the decision. For Investor Relations and different firm updates, observe us on X @MicronTech.
About Micron Technology, Inc.
We are an business chief in revolutionary reminiscence and storage options remodeling how the world makes use of data to counterpoint life for all. With a relentless concentrate on our prospects, know-how management, manufacturing, and operational excellence, Micron delivers a wealthy portfolio of high-performance DRAM, NAND, and NOR reminiscence and storage merchandise by means of our Micron® and Crucial® manufacturers. Every day, the improvements that our individuals create gas the information financial system, enabling advances in synthetic intelligence (AI) and compute-intensive functions that unleash alternatives — from the information middle to the clever edge and throughout the shopper and cell consumer expertise. To study extra about Micron Technology, Inc. (Nasdaq: MU), go to micron.com.
© 2024 Micron Technology, Inc. All rights reserved. Micron, the Micron emblem, and all different Micron logos are the property of Micron Technology, Inc. All different logos are the property of their respective house owners.
Forward-Looking Statements
This press launch incorporates forward-looking statements concerning our business, our strategic focus, demand for our merchandise, and our monetary and working outcomes, together with our steerage for the second quarter of 2025. These forward-looking statements are topic to quite a lot of dangers and uncertainties that might trigger precise outcomes to vary materially. Please consult with the paperwork we file with the Securities and Exchange Commission, together with our most up-to-date Form 10-Okay and our upcoming Form 10-Q. These paperwork comprise and establish essential elements that might trigger our precise outcomes to vary materially from these contained in these forward-looking statements. These sure elements might be discovered at traders.micron.com/risk-factor. Although we imagine that the expectations mirrored within the forward-looking statements are affordable, we can’t assure future outcomes, ranges of exercise, efficiency, or achievements. We are underneath no responsibility to replace any of the forward-looking statements to evolve these statements to precise outcomes.
| (1) | GAAP represents U.S. Generally Accepted Accounting Principles. |
| (2) | Non-GAAP represents GAAP excluding the impression of sure actions, which administration excludes in analyzing our working outcomes and understanding developments in our earnings, adjusted free money circulate, and enterprise outlook. Further data concerning Micron’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included inside this press launch. |
| MICRON TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In tens of millions, besides per share quantities) (Unaudited) |
|||||||||
| 1st Qtr. | 4th Qtr. | 1st Qtr. | |||||||
| November 28, 2024 |
August 29, 2024 |
November 30, 2023 |
|||||||
| Revenue | $ | 8,709 | $ | 7,750 | $ | 4,726 | |||
| Cost of products bought | 5,361 | 5,013 | 4,761 | ||||||
| Gross margin | 3,348 | 2,737 | (35 | ) | |||||
| Research and improvement | 888 | 903 | 845 | ||||||
| Selling, common, and administrative | 288 | 295 | 263 | ||||||
| Other working (earnings) expense, internet | (2 | ) | 17 | (15 | ) | ||||
| Operating earnings (loss) | 2,174 | 1,522 | (1,128 | ) | |||||
| Interest earnings | 107 | 131 | 132 | ||||||
| Interest expense | (118 | ) | (136 | ) | (132 | ) | |||
| Other non-operating earnings (expense), internet | (11 | ) | (7 | ) | (27 | ) | |||
| 2,152 | 1,510 | (1,155 | ) | ||||||
| Income tax (provision) profit | (283 | ) | (623 | ) | (73 | ) | |||
| Equity in internet earnings (loss) of fairness technique investees | 1 | — | (6 | ) | |||||
| Net earnings (loss) | $ | 1,870 | $ | 887 | $ | (1,234 | ) | ||
| Earnings (loss) per share | |||||||||
| Basic | $ | 1.68 | $ | 0.80 | $ | (1.12 | ) | ||
| Diluted | 1.67 | 0.79 | (1.12 | ) | |||||
| Number of shares utilized in per share calculations | |||||||||
| Basic | 1,111 | 1,108 | 1,100 | ||||||
| Diluted | 1,122 | 1,125 | 1,100 | ||||||
| MICRON TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (In tens of millions) (Unaudited) |
||||||
| As of | November 28, 2024 |
August 29, 2024 |
||||
| Assets | ||||||
| Cash and equivalents | $ | 6,693 | $ | 7,041 | ||
| Short-term investments | 895 | 1,065 | ||||
| Receivables | 7,423 | 6,615 | ||||
| Inventories | 8,705 | 8,875 | ||||
| Other present property | 777 | 776 | ||||
| Total present property | 24,493 | 24,372 | ||||
| Long-term marketable investments | 1,156 | 1,046 | ||||
| Property, plant, and tools | 41,476 | 39,749 | ||||
| Operating lease right-of-use property | 622 | 645 | ||||
| Intangible property | 419 | 416 | ||||
| Deferred tax property | 474 | 520 | ||||
| Goodwill | 1,150 | 1,150 | ||||
| Other noncurrent property | 1,671 | 1,518 | ||||
| Total property | $ | 71,461 | $ | 69,416 | ||
| Liabilities and fairness | ||||||
| Accounts payable and accrued bills | $ | 7,126 | $ | 7,299 | ||
| Current debt | 533 | 431 | ||||
| Other present liabilities | 1,356 | 1,518 | ||||
| Total present liabilities | 9,015 | 9,248 | ||||
| Long-term debt | 13,252 | 12,966 | ||||
| Noncurrent working lease liabilities | 588 | 610 | ||||
| Noncurrent unearned authorities incentives | 570 | 550 | ||||
| Other noncurrent liabilities | 1,239 | 911 | ||||
| Total liabilities | 24,664 | 24,285 | ||||
| Commitments and contingencies | ||||||
| Shareholders’ fairness | ||||||
| Common inventory | 126 | 125 | ||||
| Additional capital | 12,317 | 12,115 | ||||
| Retained earnings | 42,427 | 40,877 | ||||
| Treasury inventory | (7,852 | ) | (7,852 | ) | ||
| Accumulated different complete earnings (loss) | (221 | ) | (134 | ) | ||
| Total fairness | 46,797 | 45,131 | ||||
| Total liabilities and fairness | $ | 71,461 | $ | 69,416 | ||
| MICRON TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In tens of millions) (Unaudited) |
||||||
| Three months ended | November 28, 2024 |
November 30, 2023 |
||||
| Cash flows from working actions | ||||||
| Net earnings (loss) | $ | 1,870 | $ | (1,234 | ) | |
| Adjustments to reconcile internet earnings (loss) to internet money supplied by working actions: | ||||||
| Depreciation expense and amortization of intangible property | 2,030 | 1,915 | ||||
| Stock-based compensation | 220 | 188 | ||||
| Change in working property and liabilities: | ||||||
| Receivables | (817 | ) | (501 | ) | ||
| Inventories | 170 | 111 | ||||
| Accounts payable and accrued bills | (241 | ) | 271 | |||
| Other present liabilities | (161 | ) | 579 | |||
| Other | 173 | 72 | ||||
| Net money supplied by working actions | 3,244 | 1,401 | ||||
| Cash flows from investing actions | ||||||
| Expenditures for property, plant, and tools | (3,206 | ) | (1,796 | ) | ||
| Purchases of available-for-sale securities | (377 | ) | (199 | ) | ||
| Proceeds from maturities and gross sales of available-for-sale securities | 428 | 374 | ||||
| Proceeds from authorities incentives | 65 | 85 | ||||
| Other | (58 | ) | (22 | ) | ||
| Net money supplied by (used for) investing actions | (3,148 | ) | (1,558 | ) | ||
| Cash flows from financing actions | ||||||
| Payments of dividends to shareholders | (131 | ) | (129 | ) | ||
| Repayments of debt | (84 | ) | (53 | ) | ||
| Payments on tools buy contracts | — | (56 | ) | |||
| Other | (207 | ) | (114 | ) | ||
| Net money supplied by (used for) financing actions | (422 | ) | (352 | ) | ||
| Effect of modifications in forex trade charges on money, money equivalents, and restricted money | (29 | ) | (1 | ) | ||
| Net enhance (lower) in money, money equivalents, and restricted money | (355 | ) | (510 | ) | ||
| Cash, money equivalents, and restricted money at starting of interval | 7,052 | 8,656 | ||||
| Cash, money equivalents, and restricted money at finish of interval | $ | 6,697 | $ | 8,146 | ||
| MICRON TECHNOLOGY, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES (In tens of millions, besides per share quantities) |
|||||||||
| 1st Qtr. | 4th Qtr. | 1st Qtr. | |||||||
| November 28, 2024 |
August 29, 2024 |
November 30, 2023 |
|||||||
| GAAP gross margin | $ | 3,348 | $ | 2,737 | $ | (35 | ) | ||
| Stock-based compensation | 90 | 85 | 67 | ||||||
| Other | 3 | 4 | 5 | ||||||
| Non-GAAP gross margin | $ | 3,441 | $ | 2,826 | $ | 37 | |||
| GAAP working bills | $ | 1,174 | $ | 1,215 | $ | 1,093 | |||
| Stock-based compensation | (127 | ) | (128 | ) | (115 | ) | |||
| Other | — | (6 | ) | 14 | |||||
| Non-GAAP working bills | $ | 1,047 | $ | 1,081 | $ | 992 | |||
| GAAP working earnings (loss) | $ | 2,174 | $ | 1,522 | $ | (1,128 | ) | ||
| Stock-based compensation | 217 | 213 | 182 | ||||||
| Other | 3 | 10 | (9 | ) | |||||
| Non-GAAP working earnings (loss) | $ | 2,394 | $ | 1,745 | $ | (955 | ) | ||
| GAAP internet earnings (loss) | $ | 1,870 | $ | 887 | $ | (1,234 | ) | ||
| Stock-based compensation | 217 | 213 | 182 | ||||||
| Other | — | 6 | (10 | ) | |||||
| Estimated tax results of above and different tax changes | (50 | ) | 236 | 14 | |||||
| Non-GAAP internet earnings (loss) | $ | 2,037 | $ | 1,342 | $ | (1,048 | ) | ||
| GAAP weighted-average widespread shares excellent – Diluted | 1,122 | 1,125 | 1,100 | ||||||
| Adjustment for stock-based compensation | 16 | 12 | — | ||||||
| Non-GAAP weighted-average widespread shares excellent – Diluted | 1,138 | 1,137 | 1,100 | ||||||
| GAAP diluted earnings (loss) per share | $ | 1.67 | $ | 0.79 | $ | (1.12 | ) | ||
| Effects of the above changes | 0.12 | 0.39 | 0.17 | ||||||
| Non-GAAP diluted earnings (loss) per share | $ | 1.79 | $ | 1.18 | $ | (0.95 | ) | ||
| RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued | |||||||||
| 1st Qtr. | 4th Qtr. | 1st Qtr. | |||||||
| November 28, 2024 |
August 29, 2024 |
November 30, 2023 |
|||||||
| GAAP internet money supplied by working actions | $ | 3,244 | $ | 3,405 | $ | 1,401 | |||
| Expenditures for property, plant, and tools | (3,206 | ) | (3,120 | ) | (1,796 | ) | |||
| Payments on tools buy contracts | — | (22 | ) | (56 | ) | ||||
| Proceeds from gross sales of property, plant, and tools | 9 | 12 | 33 | ||||||
| Proceeds from authorities incentives | 65 | 48 | 85 | ||||||
| Investments in capital expenditures, internet | (3,132 | ) | (3,082 | ) | (1,734 | ) | |||
| Adjusted free money circulate | $ | 112 | $ | 323 | $ | (333 | ) | ||
The tables above reconcile GAAP to non-GAAP measures of gross margin, working bills, working earnings (loss), internet earnings (loss), diluted shares, diluted earnings (loss) per share, and adjusted free money circulate. The non-GAAP changes above might or will not be rare or nonrecurring in nature, however are a results of periodic or non-core working actions. We imagine this non-GAAP data is useful in understanding developments and in analyzing our working outcomes and earnings. We are offering this data to traders to help in performing evaluation of our working outcomes. When evaluating efficiency and making selections on the best way to allocate our sources, administration makes use of this non-GAAP data and believes traders ought to have entry to related information when making their funding selections. We imagine these non-GAAP monetary measures enhance transparency by offering traders with helpful supplemental details about the monetary efficiency of our enterprise, enabling enhanced comparability of our working outcomes between durations and with peer firms. The presentation of those adjusted quantities varies from quantities introduced in accordance with U.S. GAAP and subsequently will not be corresponding to quantities reported by different firms. Our administration excludes the next objects as relevant in analyzing our working outcomes and understanding developments in our earnings:
- Stock-based compensation;
- Gains and losses from settlements;
- Restructure and asset impairments;
- Goodwill impairment; and
- The estimated tax results of above, non-cash modifications in internet deferred earnings taxes, assessments of tax exposures, sure tax issues associated to prior fiscal durations, and important modifications in tax legislation. The divergence between our GAAP and non-GAAP earnings tax provision pertains to the distinction in our GAAP and non-GAAP estimated annual efficient tax charges, that are computed individually.
Non-GAAP diluted shares are adjusted for the impression of further shares ensuing from the exclusion of stock-based compensation from non-GAAP earnings (loss).
| MICRON TECHNOLOGY, INC. RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK |
||||||||
| FQ2-25 | GAAP Outlook | Adjustments | Non-GAAP Outlook | |||||
| Revenue | $7.90 billion ± $200 million | — | $7.90 billion ± $200 million | |||||
| Gross margin | 37.5% ± 1.0% | 1.0% | A | 38.5% ± 1.0% | ||||
| Operating bills | $1.24 billion ± $15 million | $140 million | B | $1.10 billion ± $15 million | ||||
| Diluted earnings per share(1) | $1.26 ± $0.10 | $0.17 | A, B, C | $1.43 ± $0.10 | ||||
| Non-GAAP Adjustments (in tens of millions) |
|||||||||
| A | Stock-based compensation – price of products bought | $ | 78 | ||||||
| B | Stock-based compensation – analysis and improvement | 85 | |||||||
| B | Stock-based compensation – gross sales, common, and administrative | 55 | |||||||
| C | Tax results of the above objects and different tax changes | (24 | ) | ||||||
| $ | 194 | ||||||||
| (1) | GAAP earnings per share primarily based on roughly 1.12 billion diluted shares and non-GAAP earnings per share primarily based on roughly 1.14 billion diluted shares. |
The tables above reconcile our GAAP to non-GAAP steerage primarily based on the present outlook. The steerage doesn’t incorporate the impression of any potential enterprise mixtures, divestitures, further restructuring actions, stability sheet valuation changes, strategic investments, financing transactions, and different important transactions. The timing and impression of such objects are depending on future occasions that could be unsure or exterior of our management.
