Micron FY 3Q16 Earnings Call Notes

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Results impacted by continued weakness in PC

“op line results were primarily impacted by continued weakness in the PC segment and the mobile qualifications we discussed last quarter. With recent data points indicating some improvement in channel pricing, an expectation of finalizing our mobile qualifications and continued progress on our technology and operational milestones, we remain confident about our opportunities.”

DRAM industry supply growth in 20% range

“we believe that the DRAM industry supply growth will be in the low to mid 20% range in 2016, which is consistent with our prior commentary. If wafer output declines in the latter half of the year as some parties have forecast, we would expect to exit the year on a slower run-rate and 2017 bit supply growth could be in the mid to high-teens. This compares to our long-term bit demand forecast in the low to mid-20% range. The significant improvements we are seeing in channel pricing are not currently impacting other segments. And as a result, we continue to take a conservative view of the market environment.”

3D XPoint should generate revenue in 2017 and beyond

“Relative to 3D XPoint, we are working with market enablers across a number of market segments and continue to believe this innovative technology will be a strong contributor to Micron’s future success with revenue in 2017 and beyond”

Ernie Maddock

DRAM segment breakdown

“DRAM represented 60% of our total revenue with the following segmentation. Mobile was in the mid 20% range. The PC segment represented about 25%. The server business was in the low 20% range. And specialty DRAM, which includes networking, graphics, auto and other embedded technologies, was in the high 20% range.”