Micron Announces Financial Results for the Second Quarter of Fiscal Year 2023
Micron has released its financial report for the second quarter of the 2023 fiscal year (ending March 2, 2023), which indicates a quarterly revenue of $3.69 billion, falling short of analysts’ expectations of $3.71 billion. This is also lower than the previous quarter’s revenue of $4.09 billion and the revenue of $7.79 billion in the same period of the previous fiscal year, resulting in a year-over-year decline of 53%. The net loss was $2.31 billion, compared to a net profit of $2.26 billion in the same period of the previous fiscal year, and the diluted loss per share was $2.12. The operating cash flow was $343 million, compared to $943 million in the previous quarter and $3.63 billion in the same period of the previous fiscal year.
This marks Micron’s most severe quarterly loss in the past 20 years, the last time a quarterly loss of this magnitude was seen was in the second quarter of the 2003 fiscal year when the net loss was $1.94 billion. Micron expects revenue for the third quarter of the 2023 fiscal year to be around $3.9 billion, higher than the market’s expected $3.75 billion, with a diluted loss per share of $1.51 to $1.65, also higher than analysts’ expected loss of $0.84.
Micron’s President and CEO, Sanjay Mehrotra, stated that despite the challenging market environment, Micron’s second-quarter revenue was within Micron’s guidance range, and customer inventory levels are improving. Micron expects the industry’s supply and demand balance to gradually improve and remains confident in long-term demand while carefully investing to maintain its technology and product portfolio competitiveness.
Mark Murphy, Micron’s CFO, believes that Micron is about to reach a turning point in quarterly revenue growth, and will focus on significantly improving profitability, achieving positive free cash flow within the 2024 fiscal year.
Micron also announced that in addition to reducing salaries for senior executives and completely suspending annual bonuses for the 2023 fiscal year, the proportion of layoffs has increased from 10% of total employees to 15%, and no vacancies will be filled until the end of December 2023. Moreover, Micron will further reduce capital expenditures in the 2023 fiscal year, with an expected investment of around $7 billion, a reduction of more than 40% compared to the previous fiscal year, and capital expenditures on wafer fab equipment are expected to be reduced by more than 50%, which is likely to continue to decrease in the 2024 fiscal year.