Micron: Fiscal 2Q22 Financial Results
Revenue for storage at $1.2 billion, up 2% Q/Q and 38% Y/Y
This is a Press Release edited by StorageNewsletter.com on March 30, 2022 at 2:02 pm| (in $ million) | 2Q21 | 2Q22 | 6 mo. 21 | 6 mo. 22 |
| Revenue | 6,236 | 7,796 | 12,009 | 15,473 |
| Growth | 25% | 29% | ||
| Net income (loss) | 603 | 2,263 | 1,406 | 4,569 |
Micron Technology, Inc. announced results for its second quarter of fiscal 2022, which ended March 3, 2022.
2FQ22 highlights:
• Revenue of $7.79 billion vs. $7.69 billion for the prior quarter and $6.24 billion for 2FQ21
• GAAP net income of $2.26 billion, or $2.00 per diluted share
• Non-GAAP net income of $2.44 billion, or $2.14 per diluted share
• Operating cash flow of $3.63 billion vs. $3.94 billion for 1FQ22 and $3.06 billion for 3FQ21
“Micron’s excellent second quarter results exceeded the high end of our guidance for both revenue and margin, reflecting our strong execution,” said president and CEO Sanjay Mehrotra. “We’re leading the industry in technology across DRAM and NAND, and our product portfolio momentum is accelerating. With outstanding first half results, Micron is on track to deliver record revenue and robust profitability in FY22.”
Investments in capital expenditures, net were $2.60 billion for 2FQ22, which resulted in adjusted free cash flow of $1.03 billion. The company repurchased approximately 4.8 million shares of its common stock for $408 million during 2FQ22 and ended the quarter with cash, marketable investments, and restricted cash of $11.95 billion, for a net cash position of $4.87 billion.
On March 29, 2022, the board of directors declared a quarterly dividend of $0.10 per share, payable in cash on April 26, 2022, to shareholders of record as of the close of business on April 11, 2022.
Business outlook for 3FQ22: $8.7 billion ± $200 million
Comments
4FQ22 revenue was $7.796 billion, up 1% Q/Q and 25% Y/Y, above the high end of the guidance (7.65 million to $7.85 million).
Sales for the compute and networking business unit was $3.5 billion, up 2% Q/Q and 31% Y/Y. Cloud generated record DRAM revenue, and client DRAM revenues also performed well in the quarter.
In 2FQ22, data center revenue grew more than 60% Y/Y, supported by robust demand across DRAM and SSD portfolio.
Revenue for the mobile business unit was $1.9 billion, down 2% Q/Q and up 4% Y/Y. This business continues to perform well, building on firm's leadership in managed NAND and MCPs as well as relationships with smartphone customers.
Revenue for the storage business unit was $1.2 billion, up 2% Q/Q and 38% Y/Y. This business is gaining momentum, growing revenue as well as profitability following the ramp several 176-layer NAND SSDs from QLC and TLC client products to vertically integrated data center SSDs. These 176-layer NAND represented the majority of NAND bit shipments and are now qualified in 50 different OEM platforms.
DRAM sales were $5.7 billion, representing 73% of total 2FQ22 revenue.
For the period, NAND revenue was $2 billion, representing 25% of total revenue. It increased 4% Q/Q and 19% Y/Y. Sequential bit shipments were flat, and ASPs increased in the mid-single-digit percentage range due to stronger mix of SSDs, more than offsetting like-for-like price declines. Ongoing portfolio transformation and a solid front-end cost reduction drove sequential gains in gross margin in NAND despite sequential price declines in most products.
CEO commented the situation on Covid-19: "In late December, a government-mandated Covid-19 lockdown impacted production output at our back-end facility in Xian, China. The Micron team executed with tenacity to return the Xian site back to normal output levels post lockdown. As a result of this outstanding effort, we mitigated the lost output from Xian and delivered on our customer commitments for the quarter by leveraging our global manufacturing network. Additional COVID-19-related lockdowns in the region present a risk to the global electronic supply chain, and we continue to monitor the situation closely."
About Ukraine's invasion: "The global semiconductor supply chain is experiencing pressure due to impact of Russia's invasion of Ukraine. The region is an important source for the global supply of noble gases and other critical minerals that are used in semiconductor manufacturing. We have strategically diversified our supply chain over the last several years and maintained appropriate inventories of materials and noble gases. We currently do not expect any negative impact to our near-term production volumes because of the Russia-Ukraine war, but we do expect an increase in our costs as we secure supply of certain raw materials that could be at risk."
The company expects a new record revenue for 3FQ22: $8.7 billion ± $200 million or up between 9% and 14% Q/Q. It expects strong growth of data center SSD revenues to continue for the remainder of FY22, and calendar 2022 industry bit demand growth to be in the mid- to high teens for DRAM and at approximately 30% for NAND.
NAND revenue
| Period | Revenue in $ million |
Q/Q or Y/Y change for FY |
% of global revenue |
| FY19 | 5,335 | NA | 23% |
| 1FQ20 | 1,422 | 18% | 28% |
| 2FQ20 | 1,514 | 6% | 32% |
| 3FQ20 | 1,665 | 10% | 31% |
| 4FQ20 | 1,530 | -8% | 25% |
| FY20 | 6,131 | 14% | 29% |
| 1FQ21 | 1,574 | 3% | 27% |
| 2FQ21 | 1,650 | 5% | 26% |
| 3FQ21 | 1,812 | 10% | 24% |
| 4FQ21 | 1,971 | 9% | 21% |
| FY21 | 7,007 | 14% | 25% |
| 1FQ22 | 1,878 | -5% | 24% |
| 2FQ22 | ∼2,000 | 6% | 25% |
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