This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXNPEB9606Q_M.jpg
Key takeaways from the call include:
Despite near-term demand challenges in China, Micron remains focused on maintaining its global market share. The company projects robust year-over-year bit demand growth in calendar 2024 driven by improving end-market demand, normalized customer inventory levels, content growth, and AI growth.
Micron’s fiscal 2024 financial outlook includes a projected gross margin improvement as prices increase and period costs decrease. Operating expenses are expected to increase sequentially, and the company estimates its fiscal 2024 taxes to be under $200 million. Despite expecting free cash flow to remain significantly negative in the first half of the fiscal year, Micron forecasts an improvement in the second half.
The company ended the fiscal year with $10.5 billion in cash and investments and had $13 billion of liquidity. In Q1, Micron expects record DRAM bit shipments and a decline in NAND bit shipments. The company projects a revenue of $4.4 billion, a gross margin of negative 4%, operating expenses of approximately $900 million, a tax expense of approximately $80 million, and an EPS loss of $1.07.
During the call, Micron’s CEO, Sanjay Mehrotra, outlined the company’s strategy to improve gross margin, which includes shifting equipment from older nodes to ramp up production of newer technologies, resulting in a net reduction in overall wafer capacity. This approach, along with underutilization in legacy nodes, is expected to balance industry demand and supply, strengthening demand-supply fundamentals in fiscal year 2024 and calendar year 2024.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
