Micron optimistic for the future: we have almost hit rock bottom

Micron Technology, US manufacturer of DRAM and NAND memories, closed the first fiscal quarter 2020 with a $ 5.14 billion revenue, down 35% year-over-year (7.91 billion) and up 6% the second quarter. Net profit came in at 491 million.

Micron has achieved a $ 3.5 billion in revenue for DRAM memories, 67% of the total. Sales rose 2% sequentially and dropped 41% year-on-year. To weigh is undoubtedly the price of memories, much lower than in the past.

As for the memories NAND, the turnover has reached 1.4 billion dollars, 28% of the total. The US company reported an 18% increase in sales over the previous quarter and a 14% decrease on an annual basis. Again, Micron saw the average selling price fall over the previous quarters.

“Micron has registered solid results in the first quarter, offering good profitability and positive cash flow. Our operational plan and improving conditions in the industry allow us to be optimistic that the second fiscal quarter will represent the minimum point of our financial services“Said Sanjay Mehrotra, president and CEO of Micron Technology.

“Our significantly improved competitive position, the considerably stronger product portfolio, the structurally higher profitability and the capital position position Micron very well in the long run to bring value to the shareholders ”.

Micron believes that the balance between supply and demand in the sector continues to improve on both the DRAM and NAND sides and consequently expects an improvement in the accounts in the third fiscal quarter, with a continuous recovery in the second half of the fiscal year 2020.

“High-value solutions in fiscal 2019 accounted for approximately 50% of the NAND memory capacity produced. We expect this figure to grow to more than two thirds and we are on track to ensure that 80% of the NAND capacity produced is tied to high value solutions in 2021. This improvement in the mix is ​​an important factor for us. , as it improves our profitability and reduces the volatility of our margins “.

Micron also announced of having acquired a small company called FWDNXT which offers hardware and software technology to accelerate deep learning. “Combined with our memory, it makes it possible to apply neural network models from any framework up to edge devices for inference.” In the quarter, the company also introduced its first XPoint 3D memory-based product, the X100, and in October closed its acquisition of Intel’s stake in the IMFT joint venture.

The company also announces that it plans to start the production of 128-layer NAND in the second half of the fiscal year 2020.