Micron Technology, Inc. (NASDAQ:MU) Q1 2015 Earnings Conference Call - Final Transcript

Jan 06, 2015 • 04:30 pm ET

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Micron Technology, Inc. (NASDAQ:MU) Q1 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
operator

(Starts Abruptly) All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer period. (Operator Instructions) Thank you.

It is now my pleasure to turn the floor over to your host Kipp Bedard. Sir, you may begin your conference.

Executive
Kipp Bedard

Thank you, Karen, and welcome to Micron Technologies First Quarter 2015 Financial Release Conference Call. On the call today is Mark Durcan, CEO and Director; Mark Adams, President; and Ron Foster, Chief Financial Officer and Vice President of Finance.

This conference call, including audios and slides is also available on our Web site at micron.com. In addition, our Web site has a file containing the quarterly operational and financial information and guidance, non-GAAP information with reconciliation, slides used during the conference call and a convertible debt and capped call dilution table. If you have not had an opportunity to review the first quarter 2014 financial press release, again, it is also available on our Web site at micron.com.

Our call will be approximately 60 minutes in length. There will be an audio replay of the call, access by by dialing 4045373406 with the confirmation code of 48295415. This replay will run through Tuesday, January 13 at 8:30 PM Mountain Time. A webcast replay will be available on the company's Web site until January 2016. We encourage you to monitor our Web site at micron.com throughout the quarter for the most current information on the company, including information on the various financial conferences that we will be attending. You can also follow us on Twitter @microntech.

Please note the following Safe Harbor statement.

Executive
Unidentified Speaker

(Forward-Looking Cautionary Statement)

Executive
Kipp Bedard

I'll now turn the call over to Mr. Mark DurcanCEO

Executive
Unidentified Speaker

Thanks, Kit. We had another strong quarter benefiting from continued favorable market conditions and solid execution from the team. We set a new record for quarterly revenue of $4.6 billion. GAAP net income was $1 billion. Free cash flow was $923 million based on record operating cash flow of $1.6 billion with CapEx of $669 million.

Investments were made in the business are putting us in position to continue generating strong cash flow. We expect continued favorable market conditions for 2015 led by constrained supply in DRAM and solid demand both DRAM and NAND. Demand growth in our business continues to be driven by our customers rapidly increasing memory content to enable them to enhance the performance of their products as opposed to strictly unit growth of in systems. The resulting demand outlook remains very encouraging. A few good examples of this growth include mobile DRAM, server DRAM and solid-state drives, all of which are expected to increase in every content per system by 30% to 50% in 2015.

As just mentioned, the outlook for the DRAM supply remains high. We continue to expect industry bit growth in the low-to-mid 20% range in 2015 with the development of advanced process technology, proven to be disruptive to wafer production. Our belief is that even with steps taken to