In This Article:
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Total Revenue: $8.7 billion, up 12% sequentially and 84% year-over-year.
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DRAM Revenue: $6.4 billion, up 87% year-over-year, representing 73% of total revenue.
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NAND Revenue: $2.2 billion, up 82% year-over-year, representing 26% of total revenue.
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Gross Margin: 39.5%, improving 300 basis points sequentially.
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Operating Income: $2.4 billion, with an operating margin of 27.5%.
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Adjusted EBITDA: $4.4 billion, with an EBITDA margin of 50.6%.
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Non-GAAP EPS: $1.79, compared to $1.18 in the prior quarter.
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Operating Cash Flow: $3.2 billion.
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Capital Expenditures: $3.1 billion.
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Free Cash Flow: $112 million.
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Ending Inventory: $8.7 billion or 149 days.
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Cash and Investments: $8.7 billion at quarter end.
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Total Debt: $13.8 billion.
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Fiscal Q2 Revenue Guidance: $7.9 billion, plus or minus $200 million.
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Fiscal Q2 Gross Margin Guidance: 38.5%, plus or minus 100 basis points.
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Fiscal Q2 EPS Guidance: $1.43 per share, plus or minus $0.10.
Release Date: December 18, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Micron Technology Inc (NASDAQ:MU) achieved record revenue in fiscal Q1 2025, with revenue, gross margins, and EPS all at or above the midpoint of guidance.
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Data center revenue grew over 400% year over year and 40% sequentially, reaching a record level with data center revenue mix surpassing 50% of total revenue.
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HBM shipments were ahead of plan, with more than a sequential doubling of HBM revenue, and the company expects robust growth in the HBM market over the next few years.
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Micron finalized an agreement with the US Department of Commerce for an award of up to $6.1 billion under the CHIPS and Science Act to support advanced DRAM manufacturing.
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The company is on track to achieve its HBM targets and expects to deliver a substantial record in revenue, significantly improved profitability, and positive free cash flow in fiscal 2025.
Negative Points
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Fiscal Q2 bit shipment outlook is weaker than previously expected due to more pronounced customer inventory reductions.
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NAND revenue decreased 5% sequentially, with bit shipments and prices both decreasing in the low single-digit percentage range.
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The PC refresh cycle is unfolding more gradually, with expectations for flattish PC unit volume growth in calendar 2024.
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Lower-than-expected automotive unit production and a shift toward value-trim vehicles have slowed memory and storage content growth.
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NAND industry conditions are expected to impact fiscal Q2 gross margins, with underloading affecting fiscal Q3 gross margins.