Micron Technology said its revenue fell 10 percent sequentially and 53 percent year-over-year to $3.69 billion for its second quarter of fiscal 2023, which ended March 2, 2023.
Micron’s DRAM revenue was $2.7 billion, representing 74 percent of total revenue. DRAM revenue fell 4 percent sequentially, with bit shipments increasing in the mid-teens percentage range and prices declining by 20 percent. DRAM bit shipments benefited from the timing of shipments between fiscal Q1 and fiscal Q2.

Micron’s NAND revenue was $885 million, accounting for 24 percent of total revenue. Micron’s NAND revenue fell 20 percent sequentially with bit shipments increasing in the mid-to-high single-digit percentage range and prices declining in the mid-20s percentage range.

Micron Technology’s Compute and Networking Business Unit revenue was $1.4 billion, down 21 percent sequentially. Cloud revenue was down while client revenue was stable.

Micron Technology’s revenue for the Mobile Business Unit was $945 million, up 44 percent sequentially. Mobile revenue benefited from the timing of some shipments between fiscal Q1 and fiscal Q2.

Micron Technology’s Embedded Business Unit revenue was $865 million, down 14 percent sequentially. Automotive markets were stable while industrial and consumer end markets experienced weakness.

Micron Technology’s revenue for the Storage Business Unit was $507 million, down 25 percent sequentially, impacted by challenging conditions in the NAND market.

Micron Technology CEO Sanjay Mehrotra said in its earnings report: “Customer inventories are getting better, and we expect gradual improvements to the industry’s supply-demand balance. We remain confident in long-term demand and are investing prudently to preserve our technology and product portfolio competitiveness.”

Micron Technology’s investments in capital expenditures were $2.16 billion for the second quarter of 2023.

Micron Technology is targeting revenue of $3.70 billion ± $200 million during the current quarter.

Micron expects that the industry bit supply growth for DRAM and NAND in calendar 2023 will be below demand growth, which will help improve supplier inventories.

Action plans

Micron has taken a number of actions in fiscal 2023 to improve its performance. Micron is reducing supply. Micron has made additional reductions to fiscal 2023 Capex plan and now expects to invest approximately $7 billion, down more than 40 percent from last year, with wafer fab equipment (WFE) down more than 50 percent.

In fiscal 2024, Micron expects WFE to fall further, as it ramps 1ß and 232-layer nodes in an efficient manner.

Micron has further reduced DRAM and NAND wafer starts, which are now down by approximately 25 percent. As a result, Micron’s year-on-year bit supply growth will be negative for DRAM for calendar 2023.

Micron also expects to produce fewer NAND bits in calendar 2023 than in calendar 2022.

Micron has made reductions to operating expenses beyond the executive salary cuts and suspension of Micron’s fiscal 2023 bonuses. Micron expects headcount reduction to approach 15 percent. This will occur through a combination of workforce reductions as well as attrition through the remainder of the calendar year.

Micron aims to execute a strategy of maintaining flat annual bit share in both DRAM and NAND.