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Micron (MU) -2.1% AH in spite of its FQ1 beat, as investors take profits following a 120% YTD...

Micron (MU) -2.1% AH in spite of its FQ1 beat, as investors take profits following a 120% YTD run-up. DRAM sales +23% Q/Q in FQ1, thanks to a 16% ASP increase and 6% volume growth. NAND flash sales +7%, largely due to an 8% increase in trade NAND ASPs. The ASP gains led gross margin to jump 600 bps Q/Q and 1300 bps Y/Y to 24%. Capex was $235M (10% of revenue), and free cash flow was $389M, a big improvement from FQ4's $78M and a reversal from the cash burn reported in many recent quarters. RBC notes DRAM sales were better than expected, but adds NAND shipments were light. SanDisk (SNDK) +0.8%.

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Comments (5)
  • Valuable Insights
    , contributor
    Comments (485) | Send Message
     
    Am I the only one that heard this, "So, adjusting for these items, non-GAAP EPS improved from $0.06 loss in our GAAP results in the second quarter due an income of $0.15 per share in the third quarter." - it's in the transcript. So let's get this straight, $MU is already doing $0.15 per quarter, and DRAM ASPs are rising, and Elpida hasn't closed yet. This stock is going much higher.
    19 Jun 2013, 07:01 PM Reply Like
  • Stock Market Mike
    , contributor
    Comments (2567) | Send Message
     
    I listened to the conference call. I think the reason the stock is down AH is some confusion over NAND. Pricing went up, but subtract the pricing increase and their revenue went down? A problem that didn't affect SNDK? And now MU is transitioning their Singapore fab from rocketing DRAM to NAND, while other companies (like Samsung) are also completing a NAND fab?

     

    They seem pretty sure NAND will be in high demand next year, and pretty sure their 16nm NAND will give them a competitive edge. That said, this new turn around (management being competent) is taking time to sink in.
    19 Jun 2013, 08:31 PM Reply Like
  • Copious28
    , contributor
    Comments (419) | Send Message
     
    With a two - three year ramp up for any more capacity (per Mr Russ Fischer), this looks like a pretty big moat around their business. As long as demand rises steady, its going higher for sure.
    19 Jun 2013, 08:55 PM Reply Like
  • jsr2000
    , contributor
    Comments (4) | Send Message
     
    Market conditions were as good as MU will get with the net results they barely made any money. Where is the upside to MU? They will waste time/money integrating Elpida, losing focus as SanDisk/Toshiba and Samsung fine tune the next generation of chips and software. Has anyone noticed MU rarely talks about the firmware that drives Nand in future growth, unless they just want to be a supplier, ie at mercy of buyers for cheapest price?
    20 Jun 2013, 01:31 AM Reply Like
  • ash187
    , contributor
    Comments (222) | Send Message
     
    who cares if it went down AH, I'm gonna load up on this stock!
    20 Jun 2013, 03:14 AM Reply Like
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