Micron CEO: Storage Industry is Experiencing the most Severe Supply and Demand Imbalance in 13 Years
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Update time : 2022-12-27 09:53:17
Recently, Micron Technology announced its fiscal year 2023 first quarter financial results. The earnings report showed that the company's revenue for the quarter was $4.09 billion, down 47% year-over-year, compared with market expectations of $4.11 billion; net loss was $195 million, compared with a net profit of $2.306 billion a year earlier.
Micron Technology CEO Sanjay Mehrotra said that despite the challenging situation in the quarter, Micron's revenue and earnings per share for the first fiscal quarter were within guidance. Micron's strong technology, manufacturing and financial position puts us on a solid footing to address the near-term environment, and we are taking decisive action to reduce supply and expenses. We expect to improve customer inventories, leading to higher revenues in the second half of the fiscal year and strong profitability as we weather this downturn.
Looking ahead to the next quarter, Micron forecasts fiscal second-quarter revenue of about $3.8 billion, which is lower than revenue in the first quarter and lower than the $3.8 billion widely expected by the market.
Sanjay Mehrotra said the industry is experiencing the worst supply-demand imbalance in thirteen years. Inventories should peak in the current period, he said. On a conference call after the earnings release, Mehrotra said customers will move to healthier inventory levels by around mid-2023 and chipmakers' revenue will improve in the second half of next year.
On Nov. 16 of this year, Micron also announced that it would cut DRAM and NAND Flash wafer production by 20 percent starting in the fourth quarter of 2022 in order to significantly improve total supply chain inventories and reduce memory chip supply.
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