Micron expects to ‘relieve supply chain shortages throughout 2022’

Memory chip giant Micron Technology I mentioned this afternoon Revenue and earnings for the fourth quarter of the fiscal year beat Wall Street expectations, but expectations for current quarter revenue and earnings fell far short of consensus.

The company said, however, that the supply chain constraints that it has
Distorted the electronics industry

Each year should become less burdensome during 2022.

See also: The global chip shortage is a much bigger problem than everyone realized | Here’s why the semiconductor industry stumbles on predicting the future | Europe wants to become a powerhouse for computer chips again. It won’t be easy

The report sent Micron’s shares down 4% in late trading.

CEO Sanjay Mehrotra said the company’s “outstanding execution for the company’s fourth quarter capped a year of several major milestones,” noting that in the fiscal year the company “established leadership in DRAM and NAND technology, delivered record revenue across multiple markets, and began paying quarterly dividends.” .”

Mehrotra added, “The demand outlook for 2022 is strong, and Micron offers innovative solutions to our customers, which will fuel our long-term growth.”

Revenue in the three months ended August rose to $8.27 billion, posting a net loss of $2.42 per share, excluding some costs.

Analysts were designing at $8.23 billion and $2.33 per share.

Micron’s gross profit margin based on GAAP principles was 47.9%, an increase of 13 percentage points from the fourth quarter of last year.

For the current quarter, the company expects revenue in the range of $7.45 billion to $7.85 billion, and EPS in the $2 to $2.20 per share range. That compares unanimously to $8.54 billion and $2.53 earnings per share.

Gross profit is expected to be between 46% and 48%.

in a Prepared notes document Released separately, CEO Mehrotra said supply chain constraints should ease as the 2022 calendar year progresses:

We expect primary demand in calendar 2022 to be driven by increased data center server deployments, 5G mobile shipments, and continued strength in the automotive and industrial markets. In addition, the lack of non-memory supply that restricts customer building across various end market segments and drives some demand throughout 2022, supporting demand growth during the year should ease. Given the industry’s prudent capital expenditures and very meager supplier inventories, we expect a healthy balance of industry supply and demand and strong profitability for both DRAM and NAND in the year.

Micron’s prepared notes indicate that the DRAM and NAND markets are less tightly supported in terms of demand than in previous chapters. Specifically, Micron removed language it used last quarter saying that the supply of DRAM chips is tight.

this evening Investor ShowExpect large CY-21 DRAM demand growth in the low 20% range; forecast CY-22 demand growth consistent with long-term compound annual bit growth [compounded annual growth rate] from the middle to high teenage ratio.

This compares this statement from Micron in the last quarter of the year by saying: “Expect demand growth for the CY-21 dirhams industry to be somewhat higher than 20%, with the dirhams industry supplying less than demand; there is currently unmet demand On DRAM due to market strength tends to be volume DRAM market will remain tight to CY-22.”

Similarly, in the company notes on NAND, Micron says this evening, “Expect CY-21 NAND-bit demand growth to be in the high 30% range; forecast CY-22 demand growth consistent with long-term bandwidth growth of approximately 30% .”

This differs from Micron’s fourth-quarter statement indicating tight NAND supply: “Expect demand growth for the CY-21 NAND industry in the middle of the 30% range, with NAND supply less than demand; we also see a tight NAND market in CY-22.”

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