Micron Technology, Inc. Reports Results for the Third Quarter of Fiscal 2020

Strong execution drives higher profitability

BOISE, Idaho, June 30, 2020 (GLOBE NEWSWIRE) — Micron Technology, Inc. (Nasdaq: MU) yesterday announced results for its third quarter of fiscal 2020, which ended May 28, 2020.

Fiscal Q3 2020 highlights

  • Revenue of $5.44 billion versus $4.80 billion for the prior quarter and $4.79 billion for the same period last year
  • GAAP net income of $803 million, or $0.71 per diluted share
  • Non-GAAP net income of $941 million, or $0.82 per diluted share
  • Operating cash flow of $2.02 billion versus $2.00 billion for the prior quarter and $2.71 billion for the same period last year

“Micron’s exceptional execution in the fiscal third quarter drove strong sequential revenue and EPS growth, despite challenges in the macro environment,” said Micron Technology President and CEO Sanjay Mehrotra. “We are ramping the industry’s most advanced DRAM technology into production and have delivered more than 75% of our NAND volume as high-value solutions, supported by record SSD revenue in the quarter. Our portfolio momentum positions us exceedingly well to leverage the long-term growth across our end markets.”

Quarterly Financial Results  
    GAAP(1)       Non-GAAP(2)  
(in millions, except per share amounts) FQ3-20 FQ2-20 FQ3-19   FQ3-20 FQ2-20 FQ3-19
 

Revenue

 

$     5,438

 

$     4,797

 

$     4,788

   

$     5,438

 

$     4,797

 

$     4,788

Gross margin 1,763 1,355 1,828   1,804 1,398 1,884
percent of revenue 32.4 % 28.2 % 38.2 %   33.2 % 29.1 % 39.3 %
Operating expenses 875 915 818   823 856 774
Operating income 888 440 1,010   981 542 1,110
percent of revenue 16.3 % 9.2 % 21.1 %   18.0 % 11.3 % 23.2 %
Net income attributable to Micron 803 405 840   941 517 1,198
Diluted earnings per share 0.71 0.36 0.74   0.82 0.45 1.05

Investments in capital expenditures, net(2) were $1.92 billion for the third quarter of fiscal 2020, which resulted in adjusted free cash flows(2) of $101 million. Micron repurchased approximately 929,000 shares of its common stock for $40 million during the third quarter of fiscal 2020 and ended the quarter with cash, marketable investments, and restricted cash of $9.29 billion, for a net cash(2) position of $2.60 billion.

Business Outlook

 

The following table presents Micron’s guidance for the fourth quarter of fiscal 2020:  
FQ4-20 GAAP(1) Outlook Non-GAAP(2) Outlook
 

Revenue

 

$5.75 billion – $6.25 billion

 

$5.75 billion – $6.25 billion

Gross margin 34.5% ± 1.5% 35.5% ± 1.5%
Operating expenses $900 million ± $25 million $850 million ± $25 million
Interest (income) expense, net $33 million $30 million
Diluted earnings per share $0.88 ± $0.10 $1.05 ± $0.10

Please find attached the detailed Q3 results for your reference.

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