Micron Technology Inc. (Boise, Idaho) achieved revenue of $5.44 billion in the quarter ended May 28, 2020, which exceeded the range it originally forecast of $4.6 billion to $5.2 billion. The revenues was up 13.3 percent from $4.80 billion in the prior quarter and up 13.6 percent from the same quarter a year before.
The company made a GAAP net income of $803 million down from a net income of $840 million a year before.
Capital expenditure in the quarter was $1.92 billion and the company's net cash position was £2.60 billion at the end of the quarter.
"The pandemic has impacted the cyclical recovery in DRAM and NAND, causing stronger demand in some segments and weaker demand in others," said Sanjay Mehrotra, CEO of Micron, in a conference call to discuss the financial results.
Mehrotra said that analyst estimates of end-unit sales in automobiles, smartphones and PCs and consumer electronics were down, but sales of enterprise laptops and Chromebooks have increased. But consumer activity in e-commerce, gaming and video streaming and working from home is driving data center expansion, he said, which is good for Micron's memory and solid-state disk drive business.
Mehrotra told the analysts that he expects the data center outlook to remain healthy in the second half of the calendar year. At the same time smartphone and consumer sales are set to improve and new gaming consoles will drive DRAM and NAND demand.
As a result, Micron is expecting fourth financial quarter revenue in the range $5.75 billion to $6.25 billion. At the mid-point, this would represent 23.2 percent growth on sales in the equivalent quarter in 2019.
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