Micron Announces Financial Results for the Third Quarter of Fiscal Year 2023

Micron has announced its financial results for the third quarter of fiscal year 2023, ending on June 1st. The quarterly revenue stood at $3.75 billion, marking a marginal increase from the previous quarter’s $3.69 billion and achieving a 2% quarter-over-quarter growth. This surpassed the average analyst forecast of $3.65 billion. However, compared to the corresponding period of the previous fiscal year when revenue was $8.64 billion, it represented a precipitous decline of 57%. The net loss approximated $1.9 billion, a stark contrast to the net profit of $2.63 billion for the same period in the preceding fiscal year, with a diluted loss per share of $1.73. Operating cash flow plummeted dramatically to $24 million, a steep descent from $343 million in the preceding quarter and an even steeper one from $3.84 billion in the same period of the previous fiscal year.

For the fourth quarter of the fiscal year 2023, Micron anticipates revenue of approximately $3.9 billion, which aligns with market expectations, with a projected diluted loss per share ranging from $1.34 to $1.41. The capital expenditure for the third quarter of fiscal 2023 was $1.38 billion, and the cumulative capital expenditure for the first three quarters totaled $6.215 billion. The estimated capital expenditure for the entire fiscal year is around $7 billion, implying a contraction in capital expenditure for the fourth quarter.

Sanjay Mehrotra, President, and Chief Executive Officer of Micron, affirmed that the revenue, gross margin, and earnings per share for the third quarter of fiscal 2023 have all exceeded the mean of guidance range, indicating that the memory industry has surmounted the nadir of its revenue cycle. He predicts a gradual recovery in industry supply-demand balance, and consequently, an uplift in profit margins. Nevertheless, Mehrotra concedes that the decision by the Cyberspace Administration of China (CAC) to fail Micron in the cybersecurity review presents a significant “headwind.” Revenue from mainland China and Hong Kong constitutes a quarter of its global revenue, half of which faces potential risks.