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Total Revenue: $8.7 billion, up 12% sequentially and 84% year-over-year.
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DRAM Revenue: $6.4 billion, up 87% year-over-year, representing 73% of whole income.
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NAND Revenue: $2.2 billion, up 82% year-over-year, representing 26% of whole income.
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Gross Margin: 39.5%, enhancing 300 foundation factors sequentially.
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Operating Income: $2.4 billion, with an working margin of 27.5%.
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Adjusted EBITDA: $4.4 billion, with an EBITDA margin of fifty.6%.
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Non-GAAP EPS: $1.79, in comparison with $1.18 within the prior quarter.
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Operating Cash Flow: $3.2 billion.
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Capital Expenditures: $3.1 billion.
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Free Cash Flow: $112 million.
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Ending Inventory: $8.7 billion or 149 days.
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Cash and Investments: $8.7 billion at quarter finish.
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Total Debt: $13.8 billion.
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Fiscal Q2 Revenue Guidance: $7.9 billion, plus or minus $200 million.
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Fiscal Q2 Gross Margin Guidance: 38.5%, plus or minus 100 foundation factors.
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Fiscal Q2 EPS Guidance: $1.43 per share, plus or minus $0.10.
Release Date: December 18, 2024
For the entire transcript of the earnings name, please confer with the complete earnings name transcript.
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Micron Technology Inc (NASDAQ:MU) achieved document income in fiscal Q1 2025, with income, gross margins, and EPS all at or above the midpoint of steerage.
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Data heart income grew over 400% 12 months over 12 months and 40% sequentially, reaching a document degree with knowledge heart income combine surpassing 50% of whole income.
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HBM shipments have been forward of plan, with greater than a sequential doubling of HBM income, and the corporate expects sturdy development within the HBM market over the following few years.
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Micron finalized an settlement with the US Department of Commerce for an award of as much as $6.1 billion below the CHIPS and Science Act to help superior DRAM manufacturing.
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The firm is on monitor to attain its HBM targets and expects to ship a considerable document in income, considerably improved profitability, and optimistic free money move in fiscal 2025.
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Fiscal Q2 bit cargo outlook is weaker than beforehand anticipated as a result of extra pronounced buyer stock reductions.
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NAND income decreased 5% sequentially, with bit shipments and costs each reducing within the low single-digit proportion vary.
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The PC refresh cycle is unfolding extra progressively, with expectations for flattish PC unit quantity development in calendar 2024.
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Lower-than-expected automotive unit manufacturing and a shift towards value-trim automobiles have slowed reminiscence and storage content material development.
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NAND business situations are anticipated to impression fiscal Q2 gross margins, with underloading affecting fiscal Q3 gross margins.
Q: Could you converse to what provides you the arrogance that we’ll see a seasonal or cyclical pickup throughout each DRAM and NAND? A: Sanjay Mehrotra, President and CEO, defined that the outlook for CQ2 is impacted by stock changes in shopper markets and typical seasonality. However, they count on buyer inventories to enhance by spring, driving cargo development within the fiscal second half. Data heart SSD demand, which could be lumpy, can be anticipated to return to development within the fiscal second half.
Q: Can you present extra granularity on the impression from NAND underloadings and the tailwind from growing HBM combine in revenues? A: Mark Murphy, CFO, famous that the Q2 information is down as a result of weaker NAND market situations and moderated knowledge heart SSD volumes. Underload costs will start affecting margins in Q3. However, past Q3, they count on enterprise quantity development and favorable combine results, together with HBM, to drive margin growth.
Q: What has modified to extend the HBM TAM estimate, and why is the goal share anticipated extra within the second half of 2025? A: Sanjay Mehrotra said that the HBM TAM estimate elevated as a result of increased demand and quantity necessities for 2025. The goal share is predicted within the second half of 2025 as a result of ongoing capability and yield enhancements. Micron is concentrated on ramping up HBM capability and attaining its share goal according to DRAM business share.
Q: How do you concentrate on market share in HBM over the long run, and is premium pricing nonetheless achievable? A: Sanjay Mehrotra emphasised that Micron is concentrated on attaining HBM share according to DRAM business share. The firm is leveraging its product’s efficiency and energy effectivity to keep up premium pricing. Micron plans to proceed this momentum with future merchandise like HBM4 and 4E.
Q: What are your ideas on China competitors in DDR5 and LP5 over the following 18-24 months? A: Sanjay Mehrotra famous that China competitors is extra targeted on decrease efficiency merchandise within the shopper market. As the market shifts in direction of increased efficiency merchandise, particularly in knowledge facilities, Micron is well-positioned with its superior expertise and product roadmap to deal with these higher-end market wants.
For the entire transcript of the earnings name, please confer with the complete earnings name transcript.
This article first appeared on GuruFocus.
