Micron: Fiscal 3Q14 Financial Results

(in US$ million)	3Q13	3Q14	9 mo. 13	9 mo. 14
Revenues	2,318	3,982	6,230	12,131
*Growth*		72%		*95%*
Net income (loss)	43	806	(518)	1,895

Micron Technology, Inc. announced results of operations for its third quarter of fiscal 2014, which ended May 29, 2014.

Revenues for the third quarter of fiscal 2014 were $3.98 billion and were 3% lower compared to the second quarter of fiscal 2014 and 72% higher compared to the third quarter of fiscal 2013.

GAAP Income and Per Share Data: On a GAAP basis, net income attributable to shareholders for the third quarter of fiscal 2014 was $806 million, or $0.68 per diluted share, compared to net income of $731 million, or $0.61 per diluted share, for the second quarter of fiscal 2014 and net income of $43 million, or $0.04 per diluted share, for the third quarter of fiscal 2013.

Non-GAAP Income and Per Share Data: On a non-GAAP basis, net income attributable to shareholders for the third quarter of fiscal 2014 was $913 million, or $0.79 per diluted share, compared to net income of $989 million, or $0.85 per diluted share, for the second quarter of fiscal 2014.

Revenues for both DRAM and NAND Flash products were down slightly for the third quarter of fiscal 2014 compared to the second quarter of fiscal 2014. The company’s overall consolidated gross margin of 34% for the third quarter of fiscal 2014 was consistent with the second quarter of fiscal 2014, as mix-related decreases in ASPs were essentially offset by corresponding decreases in manufacturing costs.

Cash flows from operations for the third quarter of fiscal 2014 were $1.46 billion, while investments in capital expenditures were $576 million. The company ended the third fiscal quarter of fiscal 2014 with cash and marketable investments of $4.81 billion.

Comments

Mark Adams, president:
"As we projected on our second quarter call in April, Q3 represented a turnaround quarter for our storage business unit in overall SSD volume. We were able to drive customer qualification of our NAND flash capacity from our Fab 7 conversion, as well as launch our first 16-nanometer based products for key channels and customers. Revenues for client and enterprise SSDs each increased by well over 50% compared to our second quarter."

Ron Foster, CFO:
"Turning to NAND, on the trade NAND side, sales volume decreased in the third quarter with our shift toward SSD sales, which have a longer back end manufacturing cycle time. This also contributed to a slight increase in NAND work-in-process inventories. Trade NAND gross margins in the third quarter were stable quarter-over-quarter with generally flat mix adjusted prices and costs. Trade NAND gross margins for Q4 using quarter-to-date ASP and projected mix for the quarter are expected to be down a couple of points compared to Q3 based on bit production expected to be up low to mid-teens, ASP down low to mid single-digits and cost per bit flat compared to Q3.
"On a consolidated basis, we are guiding total revenue for the fourth quarter in the range of $4 billion to $4.2 billion."