Micron (MU) Q4 August 2009 Earnings Notes
Press Release
-EPS -10c (-19c est.), revenue $1.3 billion (1.27B est.)
-DRAM sales up 28% q/q, 19% increase in volume and 8% increase in ASPs
-NAND up 10% q/q, 23% increase in volume and 11% decrease in ASPs
-memory gross margin improved to 12% from 11% last quarter. Ex-items 8% gross margin vs. -12% laster quarter
-imaging unit sales 30% higher vs. last quarter. gross margin 20% vs. 2% last quarter
-cash $1.485B, debt $3.1B
Conference call
-first time DRAM prices increased in 11 quarters
-Q1 SG&A 80-85M, R&D 130-135M
-FY2010 $750-850M cap ex
-see strong demand in first month and many products are “on allocation”
Q&A
-rest of industry doesn’t have access to capital. equipment leasing financing is “closed”
-inventory in channel is “pretty tight”
-current supply output looks tight for rest of CY2009
-some customers asking 2X of their forecast 60 days ago
-server/networking business dramatically up from july/August forecasts
-PC OEMs want more output
-Q1 bit growth up mid 20s for DRAM, up mid to high teens for NAND
Net-net
-Networking business demand “up dramatically” from July/August bodes well for CSCO
-Big upside wasn’t there as PC OEMs pay lower prices than spot