For its fiscal first quarter ended Dec. 3, the memory-chip producer reported revenue of $5.77 billion, up 12% from a year ago, with non-GAAP profit of 78 cents a share.
The adjusted profit figure beat the company’s recently increased guidance. Micron (ticker: MU) on Dec. 1 raised its outlook for the quarter, projecting revenue of $5.7 billion to $5.75 billion and adjusted profit of 69 to 73 cents a share. Earlier guidance had been for $5 billion to $5.4 billion in revenue and adjusted profit of 40 to 54 cents a share. Wall Street consensus heading into today’s release had called for $5.73 billion in revenue and adjusted profit of 71 cents a share.
“Micron delivered outstanding fiscal first quarter results, driven by focused execution and strong end-market demand,” Micron CEO Sanjay Mehrotra said in a statement.
For the fiscal second quarter, Micron is projecting revenue of $5.8 billion with adjusted profit of 75 cents a share, well ahead of the previous Wall Street consensus of $5.5 billion and 63 cents.
In a presentation prepared for a call with analysts, Micron said that it believes that the market for DRAM chips, commonly used in PCs, smartphones, servers and cars, “is past the bottom of the industry cycle,” with “improving trends” through the end of calendar 2021.
“We are excited about the strengthening DRAM industry fundamentals,” said Mehrotra in the statement. “For the first time in our history, Micron is simultaneously leading on DRAM and NAND technologies, and we are in an excellent position to benefit from accelerating digital transformation of the global economy fueled by AI, 5G, cloud, and the intelligent edge.”
The company also noted that DRAM manufacturing operations were affected by two events in the quarter: a power outage that took a plant in Taiwan offline, and an earthquake that affected two facilities. Micron noted that the two events have reduced DRAM supply in the current quarter, and raised costs in the near-term.
Micron said DRAM market bit growth was a little over 20% in calendar 2020, and it expects high-teen percentage growth in 2021, with supply below demand. Long-term, Micron sees demand growth in the mid-to-high teens.
For NAND flash memory, the company says 2020 bit growth was in the mid-20% range; for 2021, Micron expects 30% bit demand growth, with supply potentially higher. Micron says that the “market can stabilize over the course of 2021 if suppliers moderate their production growth.” Micron sees long-term bit demand growth in NAND of about 30%.
For both DRAM and NAND, Micron expects calendar 2021 supply growth to be below industry growth; longer-term, it expects supply to grow in-line with demand in both markets.
In the quarter, DRAM accounted for 70% of revenue, with NAND about 27% of the total. Revenue was up 17% for DRAM on a year-over-year basis, and 11% for NAND.
Micron rallied 2.6% to $79.11 in the regular session, while the
gained 1.5%. The chip maker’s stock was up 1.2% to $80.09 in late trading.
Write to Eric J. Savitz at email@example.com