Post Earnings Coverage as Micron Revenue Jumped 23 Percent

Upcoming AWS Coverage on SemiLEDs Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 30, 2016 / Active Wall St. announces its post-earnings coverage on Micron Technology, Inc. (NASDAQ: MU). The Company reported its first quarter fiscal 2017 financial results on December 21, 2016. The chipmaker reported first quarterly profit in a year, while its earnings and sales numbers outperformed market estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Micron Technology’s competitors within the Semiconductor- Memory Chips space, SemiLEDs Corp. (NASDAQ: LEDS), reported on November 21, 2016, its financial results for the fourth quarter and full year of fiscal year 2016, ended August 31, 2016. AWS will be initiating a research report on SemiLEDs in the coming days.

Today, AWS is promoting its earnings coverage on MU; touching on LEDS. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=MU

http://www.activewallst.com/registration-3/?symbol=LEDS

Earnings Reviewed

For the three months ended on December 01st, 2016, Micron reported that revenues were $3.97 billion and 23% higher compared to Q4 FY16 and 19% higher compared to Q1 FY16. The Company’s revenue growth on sequential basis was driven by strong volume shipments for DRAM combined with increasing ASPs. Micron’s revenue posted the first y-o-y growth in seven quarters and surpassed analysts’ estimates of $3.78 billion.

Micron’s gross margin for the reported quarter was 26%, up from 19% in Q4 FY16, driven by a strong pricing environment particularly for DRAM and solid execution on cost per bit reductions. For Q1 FY17, the Company reported operating income of $359 million compared to $232 million reported in Q1 FY16. Operating margin increased 211 basis points on a y-o-y basis to 9%.

On a GAAP basis, net income attributed to Micron’s shareholders was $180 million, or $0.16 per diluted share, for Q1 FY17 compared to a net loss of $170 million, or ($0.16) per diluted share, for Q4 FY16 and net income of $206 million, or $0.19 per diluted share, for Q1 FY16. On an adjusted basis, net income attributed to Micron’s shareholders for Q1 FY17 was $335 million, or $0.32 per diluted share, compared to a net loss of $9 million, or ($.01) per diluted share, for Q4 FY16 and net income of $299 million, or $0.29 per diluted share, for Q1 FY16. The Company’s results topped Wall Street’s expectations for an adjusted earnings of $0.28 per share.

Segment Details

During Q1 FY17, Micron’s compute and networking business unit grew 18% sequentially to $1.47 billion, primarily due to stronger demand and higher 20 nanometer shipments and a stronger pricing environment. The non-GAAP operating profit for the segment was $204 million or 14% of revenue. The Company’s embedded business unit delivered Q1 FY17 revenue of $578 million, up 13% sequentially. Non-GAAP operating income for the segment totaled $178 million or 31% of revenue. Micron’s storage business registered a 13% growth sequentially to $860 million, up 13% sequentially. The non-GAAP operating loss for the segment came in at $45 million, or 5% of revenue.

During Q1 FY17, Micron’s DRAM revenue increased 24% compared to the prior quarter, as a result of an 18% increase in bit shipments and a 5% increase in Average Sale Price. DRAM’s gross margins for the first quarter increased 8% sequentially to 28%, primarily driven by the strong pricing environment and continued 20 nanometer RAM. DRAM represented 61% of the Company’s total revenue.

Balance Sheet

Investments in capital expenditures, net of amounts funded by partners, were $1.18 billion for Q1 FY17. As of December 01st, 2016, the Company had cash and marketable investments of $4.32 billion. Micron’s receivables were $2.45 billion compared to $2.07 billion in Q4 FY16. The Company’s long-term debt declined to $8.49 billion from $9.15 billion in the prior quarter.

Outlook

For Q2 FY17, on a non-GAAP basis, Micron is expecting consolidated revenue in the range of $4.35 billion to $4.7 billion, gross margin in the range of 31% to 34%, operating expenses between $590 million and $640 million, operating income ranging between $800 million and $900 million, and EPS ranging between $0.58 and $0.68 per share.

Stock Performance

On Thursday, the stock closed the trading session at $22.27, slipping 2.24% from its previous closing price of $22.78. A total volume of 19.83 million shares have exchanged hands. Micron Technology’s stock price rallied 14.68% in the last month, 26.97% in the past three months, and 61.85% in the previous six months. Furthermore, on a year to date basis, the stock skyrocketed 57.27%.

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