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Micron Technology, Inc. Reports Results for the Second Quarter of Fiscal 2024

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Micron Technology, Inc. (MU) reported strong fiscal Q2 2024 results with revenue of $5.82 billion, GAAP net income of $793 million, and non-GAAP net income of $476 million. The company's operating cash flow was $1.22 billion, showcasing profitability and growth. Micron's CEO, Sanjay Mehrotra, highlighted the team's exceptional performance and the company's leading position in the semiconductor industry, driven by AI opportunities.
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The recent financial results from Micron Technology indicate a significant rebound in the company's profitability, attributed largely to the increased demand for AI-related semiconductor products. The reported revenue of $5.82 billion marks a substantial improvement from both the previous quarter and the same period last year, suggesting a strong recovery trajectory. This uptick in revenue, coupled with a positive GAAP net income of $793 million, reflects a robust turnaround in operations.

From an investment standpoint, the positive earnings per share (EPS) figures and the company's optimistic guidance for the upcoming quarter could signal confidence to investors. The declaration of a quarterly dividend, albeit modest, further reinforces the message of financial stability and shareholder value. However, the reported negative adjusted free cash flows raise questions about the company's capital expenditure strategy and its sustainability in the long term.

Micron's performance must be contextualized within the broader semiconductor industry, which is currently experiencing a surge in demand due to the proliferation of AI technologies. Micron's emphasis on their 'preeminent product portfolio' suggests that the company is strategically positioned to capitalize on this trend. However, it is essential to monitor market competition and the potential for supply chain constraints that could impact future profitability.

Investors should also consider the cyclical nature of the semiconductor industry, where periods of tight supply and high demand can be followed by oversupply and price declines. Micron's forward-looking statements indicate anticipation of continued growth, but market dynamics can shift rapidly, affecting future performance.

Understanding the nuances of Micron's financial health requires an examination of the gross margin improvement, which has risen from a negative percentage in the previous year to 18.5% this quarter. This metric is essential as it reflects the efficiency of the company's production process and its ability to control costs relative to sales. The projected increase in gross margin for the next quarter could indicate further operational improvements or pricing power in the market.

Additionally, the capital expenditures of $1.25 billion, despite resulting in negative free cash flow, highlight Micron's commitment to investing in its technological capabilities to meet the growing demand for AI applications. This strategic allocation of resources is likely to be a critical factor in maintaining competitive advantage in a rapidly evolving industry.

AI demand and tight supply accelerate return to profitability

BOISE, Idaho, March 20, 2024 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its second quarter of fiscal 2024, which ended February 29, 2024.

Fiscal Q2 2024 highlights

  • Revenue of $5.82 billion versus $4.73 billion for the prior quarter and $3.69 billion for the same period last year
  • GAAP net income of $793 million, or $0.71 per diluted share
  • Non-GAAP net income of $476 million, or $0.42 per diluted share
  • Operating cash flow of $1.22 billion versus $1.40 billion for the prior quarter and $343 million for the same period last year

“Micron delivered fiscal Q2 results with revenue, gross margin and EPS well above the high-end of our guidance range — a testament to our team’s excellent execution on pricing, products and operations,” said Sanjay Mehrotra, President and CEO of Micron Technology. “Our preeminent product portfolio positions us well to deliver a strong fiscal second half of 2024. We believe Micron is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity enabled by AI.”

Quarterly Financial Results
(in millions, except per share amounts)
GAAP(1) Non-GAAP(2)
FQ2-24FQ1-24FQ2-23 FQ2-24FQ1-24FQ2-23
        
Revenue$5,824 $4,726 $3,693  $5,824 $4,726 $3,693 
Gross margin 1,079  (35) (1,206)  1,163  37  (1,161)
percent of revenue 18.5% (0.7%) (32.7%)  20.0% 0.8% (31.4%)
Operating expenses 888  1,093  1,097   959  992  916 
Operating income (loss) 191  (1,128) (2,303)  204  (955) (2,077)
percent of revenue 3.3% (23.9%) (62.4%)  3.5% (20.2%) (56.2%)
Net income (loss) 793  (1,234) (2,312)  476  (1,048) (2,081)
Diluted earnings (loss) per share 0.71  (1.12) (2.12)  0.42  (0.95) (1.91)


Investments in capital expenditures, net(2) were $1.25 billion for the second quarter of 2024, which resulted in adjusted free cash flows(2) of negative $29 million. Micron ended the second quarter of 2024 with cash, marketable investments, and restricted cash of $9.72 billion. On March 20, 2024, Micron’s Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on April 16, 2024, to shareholders of record as of the close of business on April 1, 2024.

Business Outlook

The following table presents Micron’s guidance for the third quarter of 2024:

FQ3-24GAAP(1) OutlookNon-GAAP(2) Outlook
   
Revenue$6.60 billion ± $200 million$6.60 billion ± $200 million
Gross margin25.5% ± 1.5%26.5% ± 1.5%
Operating expenses$1.11 billion ± $15 million$990 million ± $15 million
Diluted earnings per share$0.17 ± $0.07$0.45 ± $0.07


Further information regarding Micron’s business outlook is included in the prepared remarks and slides, which have been posted at investors.micron.com.

Investor Webcast

Micron will host a conference call on Wednesday, March 20, 2024 at 2:30 p.m. Mountain Time to discuss its second quarter financial results and provide forward-looking guidance for its third quarter. A live webcast of the call will be available online at investors.micron.com. A webcast replay will be available for one year after the call. For Investor Relations and other company updates, follow us on X @MicronTech.

About Micron Technology, Inc.

We are an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND, and NOR memory and storage products through our Micron® and Crucial® brands. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence and 5G applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.

© 2024 Micron Technology, Inc. All rights reserved. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners.

Forward-Looking Statements

This press release contains forward-looking statements regarding our industry, our strategic position, technology trends and developments, market demand, and our financial and operating results, including our guidance for the third quarter of 2024. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents we file with the Securities and Exchange Commission, including our most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at investors.micron.com/risk-factor. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements to conform these statements to actual results.

(1)GAAP represents U.S. Generally Accepted Accounting Principles.
(2) Non-GAAP represents GAAP excluding the impact of certain activities, which management excludes in analyzing our operating results and understanding trends in our earnings, adjusted free cash flow, and business outlook. Further information regarding Micron’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release.

   

 
MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts)
(Unaudited)
 
 2nd Qtr.1st Qtr.2nd Qtr.Six months ended
 February 29,
2024
November 30,
2023
March 2,
2023
February 29,
2024
March 2,
2023
      
Revenue$5,824 $4,726 $3,693 $10,550 $7,778 
Cost of goods sold 4,745  4,761  4,899  9,506  8,091 
Gross margin 1,079  (35) (1,206) 1,044  (313)
      
Research and development 832  845  788  1,677  1,637 
Selling, general, and administrative 280  263  231  543  482 
Restructure and asset impairments     86    99 
Other operating (income) expense, net (224) (15) (8) (239) (19)
Operating income (loss) 191  (1,128) (2,303) (937) (2,512)
      
Interest income 130  132  119  262  207 
Interest expense (144) (132) (89) (276) (140)
Other non-operating income (expense), net (7) (27) 2  (34) (2)
  170  (1,155) (2,271) (985) (2,447)
      
Income tax (provision) benefit 622  (73) (54) 549  (62)
Equity in net income (loss) of equity method investees 1  (6) 13  (5) 2 
Net income (loss)$793 $(1,234) { "@context": "https://schema.org", "@type": "FAQPage", "name": "Micron Technology, Inc. Reports Results for the Second Quarter of Fiscal 2024 FAQs", "mainEntity": [ { "@type": "Question", "name": "What were Micron Technology, Inc.'s revenue figures for fiscal Q2 2024?", "acceptedAnswer": { "@type": "Answer", "text": "Micron Technology, Inc. reported revenue of $5.82 billion for fiscal Q2 2024." } }, { "@type": "Question", "name": "What was the GAAP net income for Micron Technology, Inc. in fiscal Q2 2024?", "acceptedAnswer": { "@type": "Answer", "text": "Micron Technology, Inc. achieved GAAP net income of $793 million in fiscal Q2 2024." } }, { "@type": "Question", "name": "What was the non-GAAP net income for Micron Technology, Inc. in fiscal Q2 2024?", "acceptedAnswer": { "@type": "Answer", "text": "Micron Technology, Inc. recorded non-GAAP net income of $476 million in fiscal Q2 2024." } }, { "@type": "Question", "name": "What was the operating cash flow for Micron Technology, Inc. in fiscal Q2 2024?", "acceptedAnswer": { "@type": "Answer", "text": "Micron Technology, Inc. generated operating cash flow of $1.22 billion in fiscal Q2 2024." } }, { "@type": "Question", "name": "Who is the President and CEO of Micron Technology, Inc.?", "acceptedAnswer": { "@type": "Answer", "text": "Sanjay Mehrotra is the President and CEO of Micron Technology, Inc." } } ] }

FAQ

What were Micron Technology, Inc.'s revenue figures for fiscal Q2 2024?

Micron Technology, Inc. reported revenue of $5.82 billion for fiscal Q2 2024.

What was the GAAP net income for Micron Technology, Inc. in fiscal Q2 2024?

Micron Technology, Inc. achieved GAAP net income of $793 million in fiscal Q2 2024.

What was the non-GAAP net income for Micron Technology, Inc. in fiscal Q2 2024?

Micron Technology, Inc. recorded non-GAAP net income of $476 million in fiscal Q2 2024.

What was the operating cash flow for Micron Technology, Inc. in fiscal Q2 2024?

Micron Technology, Inc. generated operating cash flow of $1.22 billion in fiscal Q2 2024.

Who is the President and CEO of Micron Technology, Inc.?

Sanjay Mehrotra is the President and CEO of Micron Technology, Inc.

Micron Technology, Inc.

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