Micron revenue drops 57% to $3.75 bn for its third-quarter

Micron Technology has reported revenue of $3.75 billion for its third quarter of fiscal 2023, which ended June 1, 2023 versus $3.69 billion for the prior quarter and $8.64 billion for the same period last year.
MicronMicron Technology has revealed that its fiscal third quarter results were impacted by ~$400 million of inventory write downs. Micron Technology posted net loss of $1.90 billion.

Micron Technology is targeting revenue of $3.90 billion in its fourth fiscal quarter. Micron Technology is targeting capital expenditure of $7 billion in fiscal 2023.

Micron Technology has generated third-quarter revenue of $1,389 million (–64 percent) from Compute and Networking (CNBU), $912 million (–36 percent) from Embedded (EBU), $819 million (–58 percent) from Mobile (MBU) and $627 million (–53 percent) from Storage (SBU).

Micron Technology has generated revenue of $2,672 million from DRAM, accounting for 71 percent of its total revenue, and $1,013 million from NAND. Micron Technology revealed that ASP of DRAM declined by approximately 10 percent, while ASP of NAND fell in the mid-teens percentage range.

“Memory industry has passed its trough in revenue, and we expect margins to improve as industry supply-demand balance is gradually restored. The recent Cyberspace Administration of China (CAC) decision is a significant headwind that is impacting our outlook and slowing our recovery,” said Micron Technology President and CEO Sanjay Mehrotra in its earnings report.

The recent acceleration in the adoption of generative AI is driving higher-than-expected industry demand for memory and storage for AI servers, while traditional server demand for mainstream data center applications continues to be lackluster, Sanjay Mehrotra said.

Customers continue to reduce excess inventory, leading to improved pricing trends and increased confidence that the industry has passed the bottom for growth and revenue, he added.

After a surge in demand during the pandemic, consumer spending on smartphones and personal computers hit a trough, driving down prices and causing a buildup of inventories.

“We believe the current memory industry inventory correction is now behind us,” said Summit Insights Group managing director Kinngai Chan.

Last month, China’s cyberspace regulator failed Micron’s products in a security review and barred purchases by operators of key infrastructure.

Micron, the biggest U.S. memory chipmaker, reiterated on Wednesday that several of its customers have been contacted by Chinese government representatives about the future use of the company’s products.

The company has said up to half of its China market share is at risk due to the CAC decision. This equates to a low-double-digit percentage of Micron’s worldwide revenue.

“Our goal is to gain share in other parts of the market and retain our global share and this is not an instantaneous process, it takes time to play out,” Micron Chief Business Officer Sumit Sadana said.