Micron: Fiscal 4Q21 Financial Results

(in $ million)	4Q20	4Q21	FY20	FY21
Revenue	6,056	8,274	21,435	27,705
*Growth*		37%		*29%*
Net income (loss)	990	2,720	2,710	5,861

Micron Technology, Inc. announced results for its fourth quarter and full year of fiscal 2021, which ended September 2, 2021.

4FQ21 highlights
• Revenue of $8.27 billion vs. $7.42 billion for 3FQ21 and $6.06 billion for 4FQ20
• GAAP net income of $2.72 billion, or $2.39 per diluted share
• Non-GAAP net income of $2.78 billion, or $2.42 per diluted share
• Operating cash flow of $3.88 billion vs. $3.56 billion for 3FQ21 and $2.27 billion for 4FQ20

FY21 highlights
• Revenue of $27.71 billion vs. $21.44 billion for FY20
• GAAP net income of $5.86 billion, or $5.14 per diluted share
• Non-GAAP net income of $6.98 billion, or $6.06 per diluted share
• Operating cash flow of $12.47 billion vers$8.31 billion for FY20

“Micron’s outstanding fourth quarter execution capped a year of several key milestones,” said president and CEO Sanjay Mehrotra. “In FY21, we established DRAM and NAND technology leadership, drove record revenues across multiple markets, and initiated a quarterly dividend. The demand outlook for 2022 is strong, and Micron is delivering innovative solutions to our customers, fueling our long-term growth.“

Investments in capital expenditures, net were $2.01 billion for 4FQ21 and $9.72 billion for FY21, which resulted in adjusted free cash flows of $1.88 billion for 4FQ21 and $2.75 billion for FY21.

The company repurchased approximately 13.9 million shares of its common stock for $1.05 billion during 4FQ21 and 15.6 million shares of its common stock for $1.20 billion during FY21 and ended the year with cash, marketable investments, and restricted cash of $10.46 billion, for a net cash position of $3.69 billion.

Outlook for 1FQ22: Revenue of $7.65 billion ± $200 million

Comments

If you consider DRAM as a storage component, Micron is the ≠2 storage company in the world behind SH hynix and in front of Dell, WD and Seagate.

Global sales are up 11% Q/Q and up 37% Y/Y.

The fiscal year ended with $10.5 billion of total cash and investments and $13 billion of total liquidity. 4FQ21 total debt was $6.8 billion.

Highlights for Micron for 4FQ21 ...

Robust profitability and th second-highest quarterly revenue in firm's history

Record quarterly revenue in NAND as well as in our embedded business.

... for FY21

Highest-ever mobile revenue, driven by all-time-high managed NAND revenue and MCP mix; embedded business had a record year, with auto and industrial businesses both at substantial new highs; crucial-branded consumer business and overall QLC mix in NAND all hit records in FY21

Revenue for the storage business unit at $1.2 billion, up 19% 3FQ21 and up yearly 32%; data center SSDs had strong growth in the quarter driven by enterprise and cloud strength; QLC shipments set a new record in the fiscal year, in terms of percentage of NAND shipments

Technology and ops

Technology leadership in DRAM and NAND with 1-alpha DRAM and 176-layer NAND, respectively, 20% to 30% faster than prior nodes

First to introduce LP5x DRAM and uMCP5 managed NAND in mobile and functional safety capable LP5 for automotive applications

1-alpha and 1z DRAM nodes combined now represent the majority of company's DRAM bit production, and by the end of 2021 expecting 176-layer NAND to represent the majority of NAND bit production

Recently took delivery of the EUV system NXE 3600 at Boise HQs.; goal of implementing extreme ultravioletn (EUV) in high-volume manufacturing in the 2024 timeframe

Successfully navigated the challenges of Covid-19 across or global manufacturing network while maintaining continuity of supply to customers

Enhancing NVMe SSD portfolio and soon introducing soon PCIe Gen4 data center SSDs with own controllers

Revenue by business unit
Micron 4fq21 F2

Revenue by technology
Micron 4fq21 F3

For 4FQ21

For FY21

DRAM

74% of total revenue
Sales up 12% Q/Q and up 39% Y/Y
Bit shipments up lower-single-digit percent Q/Q
ASPs up high-single-digit percent range Q/Q

72% of total revenue in FY21
Sales up 38% Y/Y

NAND

24% of total revenue
Sales up 9% Q/Q and 29% Y/Y
Bit shipments up low-single-digit percent Q/Q
ASPs up mid-single-digit percent Q/Q

25% of total revenue in FY21
Sales up 14% Y/Y

Industry outlook according to Micron

Expect CY21 bit demand growth to be in the low 20% range
Expect CY22 demand growth consistent with long term bit growth CAGR of mid-to high teens percent

Expect CY21 bit demand growth to be in the high 30% range
Expect CY22 demand growth consistent with long-term bit growth CAGR of approximately 30%

Outlook of Micron of DRAM and NAND business

Long-term bit supply growth CAGR in line with industry demand

CY22 bit shipment growth expected to be in line with industry demand

FY22 bit shipment to lag long term demand CAGR

Annual cost per bit reductions expected to be competitive with the industry in FY22 and over the long term

Micron Outlook
The firm plans to deliver record revenue with solid profitability in FY22, but for next quarter, revenue is supposed to sequentially decrease from 5% to 10%, as bit shipments are expected to decline in both DRAM and NAND.

	For 4FQ21	For FY21
DRAM	74% of total revenue Sales up 12% Q/Q and up 39% Y/Y Bit shipments up lower-single-digit percent Q/Q ASPs up high-single-digit percent range Q/Q	72% of total revenue in FY21 Sales up 38% Y/Y
NAND	24% of total revenue Sales up 9% Q/Q and 29% Y/Y Bit shipments up low-single-digit percent Q/Q ASPs up mid-single-digit percent Q/Q	25% of total revenue in FY21 Sales up 14% Y/Y
Industry outlook according to Micron	Expect CY21 bit demand growth to be in the low 20% range Expect CY22 demand growth consistent with long term bit growth CAGR of mid-to high teens percent	Expect CY21 bit demand growth to be in the high 30% range Expect CY22 demand growth consistent with long-term bit growth CAGR of approximately 30%