real-time news and commentary for investors
Thursday, Oct 10
Micron's FQ4: DRAM prices up, NAND prices down, margins tick higher
- Thanks to the closing of the Elpida deal, Micron's (MU) DRAM volume jumped 42% Q/Q in FQ4. That, along with a 5% increase in ASPs, led DRAM sales to rise 50%. Volumes and ASPs respectively rose 6% and 16% in FQ3.
- NAND flash sales rose 5% Q/Q, with a 17% volume increase partly offset by an 11% ASP drop. By contrast, ASPs rose 8% and volumes fell slightly in FQ3.
- FQ4 gross margin was 25%, up from 24% in FQ3 and 18% in FQ2. DRAM margin rose, while NAND margin was unchanged (an 11% improvement in manufacturing costs offset the ASP drop).
- Free cash flow was $385M, down from $389M in FQ3 but much better than the $78M reported a year earlier. Operating cash flow rose by $93M Q/Q to $717M, while capex rose by $97M to $332M.
- A $1.31/share purchase accounting gain was booked on the Elpida deal. Thus, GAAP EPS came in at $1.51.
- MU -1.5% AH. Expectations were high following a huge YTD run-up. NAND rival SanDisk (SNDK) -1.3%, likely due to Micron's NAND ASP drop.
- CC underway. FQ4 results, PR.