July 2, 2023
Micron Technology released on June 28, local time, the third fiscal quarter of 2023 (March to May) financial results showed that revenue of $3.75 billion, an increase of 2% from the previous year, down 57%. Of these, 71% of the revenue came from the DRAM business and 27% from the NAND business. Single-quarter Non-GAAP loss of $1.47 billion was better than the consensus loss of $1.69 billion, and adjusted loss per share of $1.43 was better than the $1.59 loss expected by analysts.
More importantly, Micron said that DRAM and NAND will reduce production by 30%, which is expected to continue until 2024. At the end of the quarter, Micron's inventory was $8.238 billion, and the number of days of inventory turnover was 168 days, a significant decrease from the previous quarter's 235 days.
Micron said that the ban could affect half of the revenue of Chinese customers, which is equivalent to a low double-digit percentage of Micron's global revenue (between 10% and 19%). Micron is working to mitigate the impact over time and expects to see increased revenue volatility from quarter to quarter. Micron's long-term goal is to maintain its full DRAM and NAND share.
On the other hand, industry sources said that in the face of the traditional peak season of the industry, Samsung, SK Hynix and Micron are planning to increase the contract price of DRAM in the next quarter, with a target increase of 7%-8%. According to the report, although there are still doubts that inventories and terminal demand have not seen a significant recovery, entering the tug of war will at least represent the bottom of the industry and recovery is expected.
It is reported that the recent release of some mobile phone and server manufacturers orders has begun to improve, because the increase in product growth is also within the acceptance range, coupled with the original production reduction effect is expected to begin to show in the second half of the year, so the core customers have basically accepted the reality that the storage market has declined.
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