Micron Outlook gets challenged after nearly double the chipmaker’s earnings

Micron Technology Inc. on Tuesday noted the chip-making challenges after chip share in an extended session, doubling its profits and strong cloud and consumer sales during the COVID-19 epidemic, selling more than $ 1 billion since last year After facing the challenges of moving forward.

Micron Mu,
+ 1.99%
He said that it is estimated that revenues of 40 cents to 54 centimeters would be between $ 5 billion and $ 5.4 billion in the fiscal first quarter, while analysts projected earnings of 66 cents on revenue of $ 5.27 billion.

Micron also said it does not know when it will get a license to resell one of its largest customers, the Chinese telecommunications equipment company Huawei, which the Trump administration barred from acquiring the US chip product.

Micron said that Huawei’s sales, which accounted for 10% of fourth-quarter sales, were halted on 14 September. Micron’s fourth quarter ended on Sept 3.

Micron Chief Executive Sanjay Mehrotra said, “We expect the demand for the calendar 2021 industry DRAM to grow by about 20%.” “We further expect that industry capex will improve the state of the DRAM market and profitability of the industry throughout calendar 2021.”

DRAM, or dynamic random access memory, is the type of memory commonly used in PCs and servers, while NAND chips are flash memory chips used in small devices such as USB drives and digital devices.

Mehrotra said, “Calendar 2021 industry Nanda demand growth is expected to be around 30%.” “Until industry capex moderates from current levels or demand exceeds our expectations, we see the risk of challenging the NAND industry profit levels.”

On the call, Micron’s chief financial officer David Ginsner said the company had seen some recovery in the mobile, auto and consumer markets, but COVID-19 slowed the pace of that recovery.

“Enterprise demand is weak and some of our customers can carry high inventories,” Ginsner said.

Micron reported fiscal fourth-quarter net income of $ 988 million, or 87 cents a share, compared to $ 871 million, or 51 cents per share, in the year-ago period. Adjusted earnings, excluding stock-based compensation expenses and other items, were $ 1.08 per share, compared with 56 cents a share in the year-ago period.

Revenue increased to $ 6.06 billion from $ 4.87 billion in the year-ago quarter. Analysts polled by FactSet estimated a share of 98 cents on revenue of $ 5.89 billion.

Mehrotra said the fourth quarter results were driven by strong DRAM sales in the cloud, PC and gaming consoles and an increase in QLC NAP shipments.

The company said DRAM sales accounted for 72% of the $ 4.4 billion revenue, and NAND sales were $ 1.5 billion. Compute and network sales generated $ 3.02 billion in revenue from cloud, gaming and work-driven home. Mobile sales in the quarter totaled $ 1.46 billion.

Following the transfer between profit and loss following the report, shares fell more than 3% after hours during the call, closing at $ 50.71, a 2% rise in the regular session.

Micron’s shares are down 5% for the year, versus a 22% increase on the PHLX Semiconductor Index SOX,
+ 0.21%,
3% increase on S&P 500 Index SPX,
And tech-heavy Nasdaq Composite Index comp growth of 24%,


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