Micron Technology said on Wednesday that it expects a recovery in 2020 after a “cyclical bottom” in its fiscal second quarter, and that it had received all requested licenses to supply some products to its largest customer, Huawei Technologies, Reuters reports.

“Recent trends in our business give us optimism that our fiscal second quarter will mark the bottom for our financial performance … with continued recovery in the second half of calendar 2020,” Chief Executive Sanjay Mehrotra was quoted as telling analysts on a post-earnings call.

The memory-chip maker reported net income of US$491 million for its fiscal quarter ended Nov. 28, down from US$3.29 billion in the same period last year but surpassing market expectations.

Revenue fell to US$5.14 billion from US$7.91 billion, but beat estimates of US$5.01 billion, according to IBES data from Refinitiv.

Struggling to grow sales in a slowing memory market, Micron faced more uncertainty when Washington placed Huawei on a so-called entity list in May that effectively banned US firms from supplying to the Chinese company.

Wednesday’s announcement about Huawei licenses comes amid a tepid forecast for the second quarter, but CEO Mehrotra said he expects the business to recover in the third quarter of fiscal 2020.

In June, Micron said it had determined that some of its products could be legally shipped to Huawei, while others remained barred. It did not, however, disclose if it had received a license when US officials began granting them in November.

The chipmaker said on Wednesday it had received all requested licenses that enable it to provide support for certain products and qualify new products for Huawei’s mobile and server businesses.

The licenses are not expected to have a material impact on the company’s revenue in the next couple of quarters, Micron said.

Sumit Sadana, Micron’s chief business officer, told Reuters in an interview that it will take time for Micron to work with Huawei to make sure its chips work in Huawei’s newest phones.

“We believe that we’ll be able to get back to working with them and qualifying our products, and then within a few months we should be in a much better place – assuming of course that no changes occur in terms of the US trade policy as it relates to Huawei,” Sadana said.

The Idaho-based company forecast fiscal second-quarter revenue between US$4.5 billion and US$4.8 billion.