In its first full quarter with Elpida on the books, Micron (MU) had FQ1 free cash flow of $838M, sharply above an FQ4 level of $385M and a big reversal from a year-ago level of -$302M. The increase came even though (thanks in part to Elpida) capex jumped to $669M (16.6% of revenue) from an FQ4 level of $332M.
Contributing to the cash flow jump: Gross margin rose to 32% from 25% in FQ4 and a mere 12% a year ago. Growing scale, healthy DRAM pricing (aided by the SK Hynix fire), and Elpida's mobile DRAM sales (mobile DRAM generally carries higher margins than PC DRAM) likely helped out..
The Elpida deal contributed to a 69% Q/Q increase in DRAM sales. NAND flash sales rose 8% Q/Q after growing 5% in FQ4, with an 11% volume increase offsetting a slight ASP decline.
While revenue rose 120% Y/Y to $4.04B, SG&A spend rose 48% to $176M, and R&D spend 43% to $320M. Micron had $5.8B in debt at the end of FQ1, to go with $4.4B in cash/investments.
FQ1 results, PR