Micron Technology, Inc. Reports Results for the Third Quarter of Fiscal 2023. Losing over $15 Million Each Day

[TheLostSwede]

Micron Technology, Inc. (Nasdaq: MU) today announced results for its third quarter of fiscal 2023, which ended June 1, 2023.

"Micron delivered fiscal third quarter revenue, gross margin, and EPS all above the midpoint of the guidance range," said Micron Technology President and CEO Sanjay Mehrotra. "We believe that the 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. Longer-term, Micron's technology leadership, product portfolio, and operational excellence continues to strengthen our competitive positioning across diverse growth markets, including AI and memory-centric computing."



Fiscal Q3 2023 highlights

• Revenue of $3.75 billion versus $3.69 billion for the prior quarter and $8.64 billion for the same period last year
• GAAP net loss of $1.90 billion, or $1.73 per diluted share
• Non-GAAP net loss of $1.57 billion, or $1.43 per diluted share
• Operating cash flow of $24 million versus $343 million for the prior quarter and $3.84 billion for the same period last year

Investments in capital expenditures, net were $1.38 billion for the third quarter of 2023, which resulted in adjusted free cash flows of negative $1.36 billion. Micron ended the third quarter of 2023 with cash, marketable investments, and restricted cash of $11.40 billion. Micron's Board of Directors has declared a quarterly dividend of $0.115 per share, payable in cash on July 25, 2023, to shareholders of record as of the close of business on July 10, 2023.

Business Outlook
The table below presents Micron's guidance for the fourth quarter of 2023:



Further information regarding Micron's business outlook is included in the prepared remarks and slides, which have been posted at investors.micron.com.

View at TechPowerUp Main Site | Source

 

[mb194dc]

So revenue halved, expenses increased and they're losing billions?

But don't worry, because they mentioned AI about 200 times on the call ?

 

[R0H1T]

No because they're getting a large handout from US taxpayers!

 

[Wirko]

No because they're getting a large handout from US taxpayers!

On one condition: that they build new money-losing fabs in the USA rather than elsewhere.

 

[R-T-B]

But don't worry, because they mentioned AI about 200 times on the call ?

They honestly only said it once. Still too much, but yeah.

 

[bonehead123]

So, like most other tech firms, they're losing a few million, after making like a gazzillion during the pandemic era... yea, I'm weepin for them sooooo hard ....

/s

n.O.t...

 

[Bomby569]

and the bubble hasn't even burst, but it will.

Anyway they just found the solution, price increases in a down market and more bans on sales to China. This is going to end so badly.

 

[Aquinus]

So, like most other tech firms, they're losing a few million, after making like a gazzillion during the pandemic era... yea, I'm weepin for them sooooo hard ....

/s

n.O.t...

You say that, but I lost half of my contracting workforce because of the rate hikes the fed has been making and its impact on operating costs now that holding debt is far more expensive. It's hard to get everything balanced and not sacrifice anything along the way. While I generally agree with the sentiment, there are some very real reasons why businesses are in a pickle right now. If Micron took on a bunch of debt to finance these fabs, I suspect that a very large chunk of those millions a day is to repay said debt and stay ahead of interest. I don't know how privy you are to how businesses operate, but most loans businesses have aren't fixed interest like a mortgage in the US. They fluctuate with the fed's rate. So a loan that made perfect sense a year ago, might really hurt now that the fed has increased the rate by something like 5-ish basis points.

 

[awesomesauce]

and the bubble hasn't even burst, but it will.

Anyway they just found the solution, price increases in a down market and more bans on sales to China. This is going to end so badly.

this^

 

[qlum]

I don't think these figures are at all surprising, nand / dram prices have dropped like a stone, so if your business is selling those things you are going to lose a lot of money.

Over time there will be a shortage again with those prices going up and then they make billions, such is the nand / dram marker.

 

[Bomby569]

I don't think these figures are at all surprising, nand / dram prices have dropped like a stone, so if your business is selling those things you are going to lose a lot of money.

Over time there will be a shortage again with those prices going up and then they make billions, such is the nand / dram marker.

they don't sell nand/dram, they sell wafers and tsmc prices increased.

 

[TheinsanegamerN]

You say that, but I lost half of my contracting workforce because of the rate hikes the fed has been making and its impact on operating costs now that holding debt is far more expensive. It's hard to get everything balanced and not sacrifice anything along the way. While I generally agree with the sentiment, there are some very real reasons why businesses are in a pickle right now. If Micron took on a bunch of debt to finance these fabs, I suspect that a very large chunk of those millions a day is to repay said debt and stay ahead of interest. I don't know how privy you are to how businesses operate, but most loans businesses have aren't fixed interest like a mortgage in the US. They fluctuate with the fed's rate. So a loan that made perfect sense a year ago, might really hurt now that the fed has increased the rate by something like 5-ish basis points.

Imagine being one of these businesses, raking in BILLIONS during a temporary wave, and not using that money to remove the huge debt load that loomed over their heads.

SMH. Did everyone REALLY think debt would remain near 0% forever? Once you get to the size of micron carrying that kind of debt with no way to pay it off if SHTF is just irresponsible.

 

[TheLostSwede]

they don't sell nand/dram, they sell wafers and tsmc prices increased.

Sorry what? I think you need to research Micron before making comments like that. They have their own fabs and they sell their own NAND and DRAM, plus they have their own RAM and SSDs under Crucial, as well as Micron to OEM customers.

 

[Bomby569]

Sorry what? I think you need to research Micron before making comments like that. They have their own fabs and they sell their own NAND and DRAM, plus they have their own RAM and SSDs under Crucial, as well as Micron to OEM customers.

nevermind, my mistake

 

[bonehead123]

Imagine being one of these businesses, raking in BILLIONS during a temporary wave, and not using that money to remove the huge debt load that loomed over their heads.

SMH. Did everyone REALLY think debt would remain near 0% forever? Once you get to the size of micron carrying that kind of debt with no way to pay it off if SHTF is just irresponsible.

^^THIS..EXACTLY...1000%^^

 

[R-T-B]

they don't sell nand/dram, they sell wafers and tsmc prices increased.

wut. Of course they sell nand and dram, it's Micron.

nevermind, my mistake

oof, missed this, ignore the above. We all make mistakes, it's cool.

 

[sethmatrix7]

^^THIS..EXACTLY...1000%^^

Why would they worry about debt? Worst case scenario the tax payer will foot the bill

Hope we're all enjoying neo-capitalism!

 

[Wirko]

Sorry what? I think you need to research Micron before making comments like that. They have their own fabs and they sell their own NAND and DRAM, plus they have their own RAM and SSDs under Crucial, as well as Micron to OEM customers.

With that said, they also sell NAND and DRAM in the shape of wafers. As you seem to know the semi industry quite well, do you have an idea (or knowledge) how much of their revenue they get from wafers vs other forms (unpackaged dies, packaged chips, end products)?

Once you get to the size of micron

I somehow managed to read these words totally out of context, and had a good laugh.

 

[mechtech]

I bought 64 gigs of ram to help them out. At the current price of ddr4 I might buy another 64 gigs.

 

[lexluthermiester]

Context that seems to be missing, especially from that article headline, is that Micron is a multi-billion dollar daily transaction company. Losing 15 million is a loss less than 1% of it's daily totals. This is NOT compounding loss data. Here is another example of people making mountains out of mole-hills and not completely understanding the information...

 

[qlum]

Context that seems to be missing, especially from that article headline, is that Micron is a multi-billion dollar daily transaction company. Losing 15 million is a loss less than 1% of it's daily totals. This is NOT compounding loss data. Here is another example of people making mountains out of mole-hills and not completely understanding the information...

I think the biggest thing is that the nand / dram market is just rather cyclical. There are good times of scarcity for the manufacturers and there are times like these, when the price keeps falling due to oversupply.
It is just the way things go for this sector.

 

[lexluthermiester]

I think the biggest thing is that the nand / dram market is just rather cyclical.

This is correct. And with all the nonsense of the pandemic and the after effects thereof, what is happening is not only completely normal, but even expected. It's not end-of-the-world or even end-of-the-company stuff. It's barely even a blip on Micron's financial radar.

There are good times of scarcity for the manufacturers and there are times like these, when the price keeps falling due to oversupply.
It is just the way things go for this sector.

Exactly!

Micron will be fine folks.

 

[bonehead123]

I bought 64 gigs of ram to help them out. At the current price of ddr4 I might buy another 64 gigs.

Yea, I've been busy upgrading most of my client's rigs from 32 to 64 &128GB, as well as the family/aunts/uncles/nieces/nephews etc, and also stockpiling some for my upcoming client builds, so I am counting that as my contribution to help Micron avoid chapter 11 in these tough times, hehehe......

 

[Icon Charlie]

Yea, I've been busy upgrading most of my client's rigs from 32 to 64 &128GB, as well as the family/aunts/uncles/nieces/nephews etc, and also stockpiling some for my upcoming client builds, so I am counting that as my contribution to help Micron avoid chapter 11 in these tough times, hehehe......

This is the right and smart thing to do. As stated before increasing the amount of ram has some tremendous upsides. At least in my case it was big.

 

[JohH]

Micron will be fine so long as they can survive to the next boom cycle.
But every bust takes a few more memory/flash companies with it. Eventually we'll be left with a global duopoly.

Also in retrospect it seems Intel was right to sell off its NAND flash fabs to SK Hynix and stop Optane when it did. They'd be losing even more money now.