Micron: Fiscal 1Q17 Financial Results

(in $ million)	1Q16	1Q17	Growth
Revenue	3,350	3,970	*19%*
Net income (loss)	206	180

Micron Technology, Inc. announced results of operations for its first quarter of fiscal 2017, which ended December 1, 2016.

Revenues for the first quarter of fiscal 2017 were $3.97 billion and were 23% higher compared to the fourth quarter of fiscal 2016 and 19% higher compared to the first quarter of fiscal 2016.

“Positive market momentum, driven by favorable demand trends and limited industry supply, produced solid results for our first quarter,” said CEO Mark Durcan. “We continue to make significant progress on our key technology and product initiatives, and we are pleased to have closed the Inotera acquisition on December 6, 2016, which we expect to further improve Micron’s strategic position and financial results.“

GAAP Income and Per Share Data – On a GAAP basis, net income attributable to shareholders for the first quarter of fiscal 2017 was $180 million, or $0.16 per diluted share, compared to a net loss of $170 million, or ($0.16) per diluted share, for the fourth quarter of fiscal 2016 and net income of $206 million, or $0.19 per diluted share, for the first quarter of fiscal 2016.

Non-GAAP Income and Per Share Data – On a non-GAAP basis, net income attributable to shareholders for the first quarter of fiscal 2017 was $335 million, or $0.32 per diluted share, compared to a net loss of $9 million, or ($.01) per diluted share, for the fourth quarter of fiscal 2016 and net income of $299 million, or $0.29 per diluted share, for the first quarter of fiscal 2016.

The increase in the company’s revenues of 23% for the first quarter of fiscal 2017 compared to the fourth quarter of fiscal 2016 was due primarily to 18% and 26% increases in DRAM and trade NAND sales volumes, respectively, and a 5% increase in DRAM ASPs.

The company’s overall consolidated GAAP gross margin of 25% for the first quarter of fiscal 2017 was 7%age points higher compared to the fourth quarter of fiscal 2016 primarily due to manufacturing cost reductions and increases in DRAM ASPs.

Investments in capital expenditures, net of amounts funded by partners, were $1.18 billion for the first quarter of fiscal 2017. The company ended the first quarter of fiscal 2017 with cash and marketable investments of $4.32 billion.

Comments

Revenue, gross margin, operating income all exceeded company's guidance.

Mark Durcan, CEO, said: "For the industry, supply is slowing, demand is stronger on a number of key segments and inventory is at low levels. Prices have been strengthening on a like-for-like basis across all leading SDRAM and NAND products and we see this trend continuing into the current quarter."

Storage business unit

4FQ16

1FQ17

Growth

Revenue in $ million

758

860

13%

% of total revenue

24%

22%

The storage business unit continued to make progress shifting its portfolio to advanced 3D NAND technologies. The 1,100 client SSDs announced last quarter completed qualifications and the firm commenced volume shipments with several major customers. This compliments its Crucial MX 300 consumer drive, which is currently shipping at high volumes.

1FQ17 trade non-volatile

Revenue

+26% compared to prior quarter

% of total revenue

32%

Sales bit growth

+26%

Average sales price

Cost/bit

-8%

Gross margin

23%