Micron Technology reported adjusted earnings of $1.45 a share, higher than analysts’ expectations of $1.37 a share. The result also revealed a substantial decrease from the year-ago quarter’s $2.42 a share (as reported in MarketWatch)
Revenue fell to $6.64 billion from $8.27 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast revenue of $6.73 billion. (as reported in MarketWatch)
In July, Micron cautioned of possible oversupply in the chip market following COVID-19 pandemic-driven shortages. “Recently, the industry demand environment has weakened, and we are taking action to moderate our supply growth in fiscal 2023,” said Sanjay Mehrotra, Micron’s chief executive, in a statement issued in July. “We are confident about the long-term secular demand for memory and storage and are well positioned to deliver strong cross-cycle financial performance.”
In the latest statement, Mark Murphy, Micron’s chief financial officer, said, “Inventory levels are high and they’re going to be higher.” (as reported in MarketWatch). “They’ll be over 150 days, we believe. And again, it’s a function of this unprecedented period, and we’re doing what we can to affect future supply or future capacity, be in a position to work those inventories down.”
Mehrotra said that Micron intends to lower capital spending in fiscal 2023 by about $8 billion, or by more that 30%, with a 50% cut in spending on wafer-fab equipment.
Looking ahead, the chipmaker is expecting adjusted loss of 6 cents and net income of 14 cents a share on revenue of $4 billion to $4.5 billion for the fiscal first quarter. Analysts expected 69 cents a share on revenue of $5.71 billion.