Micron beat FQ4 results on the top and bottom lines and outlines the DRAM/NAND performance and general industry forecasts in the investor presentation.
DRAM accounted for 72% of total revenue in FQ4, up from 66% last quarter. Revenue was up 22% Q/Q and 29% Y/Y. Average selling prices were down by a lower-single-digit percent range Q/Q.
NAND represented 25% of revenue, down from 31% last quarter. Revenue was down 8% Q/Q and 27% Y/Y. Bit shipments were flat on the quarter, and ASPs were down by the upper-single-digit percent range.
Last quarter, DRAM revenue was up 16%Q/Q and 6% Y/Y with ASPs up in the mid-single-digit percent range Q/Q. NAND sales were up 10% Q/Q and over 50% Y/Y with ASPs up in the low single-digit range.
For the DRAM outlook, Micron expects CY20 bit supply growth to be above industry demand (mid-teens percent), CY21 bit supplies at moderate to less than industry demand (about 20%), and long-term bit supply CAGR in-line with demand (mid-to-high teens percent). For FY21, Micron expects cost reductions in mid-single-digit range, impacted by the product mix.
For NAND, Micron expects CY20 bit supplies well below industry demand (mid-20% range), CY21 supplies somewhat below the industry's 30% forecast, and long-term bit supply CAGR in-line with the industry's 30% demand. FY21 cost reductions will be in the low-to-mid-teens percent range.
End market trends: Micron says smartphone, auto, and consumer have started to recover and expects further demand improvements ahead.
Cloud and laptop demand remains healthy, driven by the pandemic's work from home trend.
Micron says the short-term outlook has weakened and enterprise demand is softer due to lower IT spending.
Micron halted shipments to Huawei on September 14 and expects to offset the impact by the end of Q2 FY21.