Micron's (MU) NAND flash sales rose 11% Q/Q in FQ2, as a 35% volume increase more than offset an 18% ASP drop. DRAM sales were roughly flat, with both volumes and ASPs holding steady. In FQ1, NAND sales rose 8%, and DRAM sales (boosted by the Elpida deal) 69%.
Gross margin rose to 34% from 32% in FQ1 and a mere 18% a year ago. Higher DRAM margins were responsible for the Q/Q increase; Elpida restructuring efforts and a shift to higher-margin mobile DRAM sales are likely helping.
With Elpida on the books, SG&A spend rose 44% Y/Y to $177M (4.3% of revenue), and R&D spend 61% to $344M (8.4% of revenue).
Free cash flow was $825M, down slightly from FQ1's $838M. Capex fell to $565M (13.8% of revenue) from FQ1's $669M.
Micron ended the quarter with $5.06B in cash/marketable investments and $6.55B in debt.