Micron: Fiscal 1Q25 Financial Results
Data center revenue grew over 40% sequentially and over 400% YoY.
This is a Press Release edited by StorageNewsletter.com on December 23, 2024 at 2:02 pmMicron Technology, Inc. announced results for its 1st quarter of fiscal 2025, which ended November 28, 2024.
Fiscal Q1 2025 highlights
- Revenue of $8.71 billion vs. $7.75 billion for the prior quarter and $4.73 billion for the same period last year
- GAAP net income of $1.87 billion, or $1.67 per diluted share
- Non-GAAP net income of $2.04 billion, or $1.79 per diluted share
- Operating cash flow of $3.24 billion vs. $3.41 billion for the prior quarter and $1.40 billion for the same period last year
Revenues by Technology
“Micron delivered a record quarter, and our data center revenue surpassed 50% of our total revenue for the first time,” said Sanjay Mehrotra, president and CEO, Micron Technology. “While consumer-oriented markets are weaker in the near term, we anticipate a return to growth in the second half of our fiscal year. We continue to gain share in the highest margin and strategically important parts of the market and are exceptionally well positioned to leverage AI-driven growth to create substantial value for all stakeholders.“
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Investments in capital expenditures, net (2) were $3.13 billion for the first quarter of 2025, which resulted in adjusted free cash flows (2) of $112 million for the 1st quarter of 2025. Micron ended the quarter with cash, marketable investments, and restricted cash of $8.75 billion. On December 18, 2024, Micron’s board of directors declared a quarterly dividend of $0.115 per share, payable in cash on January 15, 2025, to shareholders of record as of the close of business on December 30, 2024.
Business Outlook
The following table presents Micron’s guidance for the second quarter of 2025:
Further information regarding Micron’s business outlook is included in the prepared remarks and slides, which have been posted at investors.micron.com.
Investor Webcast
Micron host a conference call on Wednesday, December 18, 2024 at 2:30 p.m. Mountain Time to discuss its 1st quarter financial results and provide forward-looking guidance for its second quarter. A live webcast of the call is available online at investors.micron.com. A webcast replay is available for one year after the call.
(1) GAAP represents U.S. Generally Accepted Accounting Principles.
(2) Non-GAAP represents GAAP excluding the impact of certain activities, which management excludes in analyzing our operating results and understanding trends in our earnings, adjusted free cash flow, and business outlook. Further information regarding Micron’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release.
Comments
Consolidated Statements of Operation
(In millions, except per share amounts)
(Unaudited)
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Consolidated balance sheets (In millions)
(Unaudited)
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Consolidated statements of cash flows (In millions)
(Unaudited)
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Reconciliation of GAAP to non-GAAP measures
(In millions, except per share amounts)
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Reconciliation of GAAP to Non-GAAP Measures, Continued
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The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income (loss), net income (loss), diluted shares, diluted earnings (loss) per share, and adjusted free cash flow. The non-GAAP adjustments above may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. We believe this non-GAAP information is helpful in understanding trends and in analyzing our operating results and earnings. We are providing this information to investors to assist in performing analysis of our operating results. When evaluating performance and making decisions on how to allocate our resources, management uses this non-GAAP information and believes investors should have access to similar data when making their investment decisions. We believe these non-GAAP financial measures increase transparency by providing investors with useful supplemental information about the financial performance of our business, enabling enhanced comparison of our operating results between periods and with peer companies. The presentation of these adjusted amounts varies from amounts presented in accordance with US GAAP and therefore may not be comparable to amounts reported by other companies.
Our management excludes the following items as applicable in analyzing our operating results and understanding trends in our earnings:
- Stock-based compensation;
- Gains and losses from settlements;
- Restructure and asset impairments;
- Goodwill impairment; and
- The estimated tax effects of above, non-cash changes in net deferred income taxes, assessments of tax exposures, certain tax matters related to prior fiscal periods, and significant changes in tax law. The divergence between our GAAP and non-GAAP income tax provision relates to the difference in our GAAP and non-GAAP estimated annual effective tax rates, which are computed separately.
Non-GAAP diluted shares are adjusted for the impact of additional shares resulting from the exclusion of stock-based compensation from non-GAAP income (loss).
Reconciliation of GAAP to non-GAAP outlook
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(1) GAAP earnings per share based on approximately 1.12 billion diluted shares and non-GAAP earnings per share based on approximately 1.14 billion diluted shares.
The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, additional restructuring activities, balance sheet valuation adjustments, strategic investments, financing transactions, and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.
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