Micron: Fiscal 4Q14 Financial Results
Incredible financial results, could be number one in worldwide storage industry this year
This is a Press Release edited by StorageNewsletter.com on September 26, 2014 at 2:41 pm| (in $ million) | 4Q13 | 4Q14 | FY13 | FY14 |
| Revenue | 2,843 | 4,227 | 9,073 | 16,358 |
| Growth | 49% | 80% | ||
| Net income (loss) | 1,708 | 1,150 | 1,190 | 3,045 |
Micron Technology, Inc. announced results of operations for its fourth quarter and 2014 fiscal year, which ended August 28, 2014.
Revenues for the fourth quarter of fiscal 2014 were $4.23 billion and were 6% higher compared to the third quarter of fiscal 2014 and 49% higher compared to the fourth quarter of fiscal 2013.
Revenues for fiscal year 2014 were $16.36 billion and net income attributable to Micron shareholders was $3.05 billion, or $2.54 per diluted share. Cash flows from operations were $5.70 billion for fiscal year 2014.
GAAP Income and Per Share Data
On a GAAP basis, net income attributable to shareholders for the fourth quarter of fiscal 2014 was $1.15 billion, or $0.96 per diluted share, compared to net income of $806 million, or $0.68 per diluted share, for the third quarter of fiscal 2014 and net income of $1.71 billion, or $1.51 per diluted share, for the fourth quarter of fiscal 2013. The fourth quarter of fiscal 2013 included $1.48 billion, or $1.31 per diluted share, in purchase accounting gains relating to the acquisition of Elpida Memory, Inc. and Rexchip Electronics Corporation.
Non-GAAP Income and Per Share Data
On a non-GAAP basis, net income attributable to shareholders for the fourth quarter of fiscal 2014 was $961 million, or $0.82 per diluted share, compared to net income of $913 million, or $0.79 per diluted share, for the third quarter of fiscal 2014.
“We are pleased with the company’s performance that resulted in record revenue and earnings for the year,” said CEO Mark Durcan. “Continued favorable market conditions and steady execution led to increases in sales volumes and another quarter of strong operating margins and earnings per share.“
An up-front charge recorded in the fourth quarter of fiscal 2014 associated with the company’s recently executed patent license agreement with Tessera Technologies led to a small decline in consolidated gross margin as compared to the third quarter of fiscal 2014. Cash flows from operations were $1.35 billion for the fourth quarter of fiscal 2014, while investments in capital expenditures were $1.33 billion. The company ended the fourth quarter of fiscal 2014 with cash and marketable investments of $5.35 billion.
Comments
Micron, in DRAM, SDRAM, NOR, NAND flash chips and SSDs, is currently one of the most successful storage company with happy shareholders and becoming probably the number one storage firm in the world, maybe in front of EMC storage.
It registered record revenue of $4.2 billion for the last quarter and, for the year, record sales at $16.4 billion, record net income with $3 billion, record free cash flow of $2.6 billion based on record operating cash flow of $5.7 billion less Capex of $3.1 billion.
DRAM revenue increased nearly 5% compared to the third quarter, primarily due to an increase in bit sales volume and stable ASPs. DRAM gross margin remained in the high 30% range, with flat cost per bit.
On the Trade NAND side, revenue increased 6% in the fourth quarter with a 13% increase in bit sales volume partially offset by 6% decrease in the average selling price. The company has transitioned to 16mm NAND for 256Gb chips with TLC version sampling at the end of the year and 3D NAND expected to ship before the end of 2015.
Storage unit recorded $907 million in revenue in the fourth quarter, up 4% Q/Q. The company continues to make progress in the client and enterprise SSD market. It sets records for total SSD revenue gigabyte shipped and overall units for the most recent quarter, while also achieving record revenue for both client and enterprise SSDs individually. It increased client SSD shipments to tier 1 OEMs by 23% Q/Q. For fiscal 2014, storage revenue was up 23% when compared to 2013, coming in at $3.5 billion. Enterprise SSD revenue was up 79% sequentially.
Micron by business units
(revenue in $million)
| Unit | 3QQ14 revenue | 4FQ14 revenue | Q/Q growth |
| Compute and networking | 1,857 | 1,897 | 2% |
| Storage | 867 | 907 | 5% |
| Mobile | 757 | 910 | 20% |
| Embedded | 467 | 476 | 2% |
Micron expects revenue between $4.45 and $4.70 billion for the next three-month period, up between 5% and 11%. In terms of the more traditional investments, in memory process technology, DRAM will represent about 50% and NAND will represent about 20% of total Capex in 2015. This compares to 45% and 30% to 35% respectively in 2014.
In storage as a whole - and even they are not competitors at all -, Micron has higher revenue than than EMC storage in calendar year 2013. Depending on the final results of EMC for its fiscal year ended in December, it is now the number one or two company in the worldwide storage industry, being bigger than Seagate, WD, NetApp and rival SanDisk.
Last known fiscal year revenue of biggest companies for storage
(in $million)
| Ranking | Company | Revenue |
| 1 | Micron | 16,358 |
| 2 | EMC | 16,132 |
| 3 | WD | 15,130 |
| 4 | Seagate | 13,724 |
| 5 | NetApp | 6,332 |
| 6 | SanDisk | 6,170 |
Read also:
Top 12 Storage Companies in 2013
#1 EMC, #2 WD, #3 Seagate
To read the earnings call transcript
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