Micron Technology, Inc. (NASDAQ:MU) Q1 2018 Earnings Conference Call Transcript

Dec 19, 2017 • 04:30 pm ET


Micron Technology, Inc. (NASDAQ:MU) Q1 2018 Earnings Conference Call Transcript


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Good day, ladies and gentlemen, and welcome to Micron's First Quarter 2018 Financial Call. (Operator Instructions)

I would now like to turn the call over to Ms. Shanye Hudson. Ma'am, you may begin.

Shanye Hudson

Thank you, Chelsea, and welcome to Micron Technology's First Fiscal Quarter 2018 Financial Conference Call.

On the call with me today are Sanjay Mehrotra, President and CEO; and Ernie Maddock, CFO. Today's call will be approximately 60 minutes in length. This call, including audio and slides, is being webcast from our IR website at investors.micron.com. In addition, our website contains the earnings press release filed a short while ago.

Today's discussion of financial results will be presented on a non-GAAP financial basis unless otherwise specified. A reconciliation of GAAP to non-GAAP financial measures may be found on our website, along with a convertible debt and capped call dilution table.

As a reminder, the prepared remarks from this call and webcast replay will also be available on our website later today. We encourage you to monitor our website at micron.com throughout the quarter for the most current information on the company, including information on the various financial conferences that we'll be attending. You can follow us on Twitter @MicronTech.

(Forward-Looking Cautionary Statements)

Lastly, Micron is planning to host its 2018 Analyst and Investor Event on May 21 in New York City. We'll share further details about this event in the coming months.

With that, I'll now turn the call over to you, Sanjay.

Sanjay Mehrotra

Thank you, Shanye. Good afternoon. Micron's record first quarter results demonstrate the company's continued strong execution, a market environment that reflects the strategic importance of memory and flash storage and healthy supply and demand fundamentals.

During the quarter, we continued to enhance our cost competitiveness, achieving yield maturity on both 1X DRAM and 64-layer 3D NAND. We improved our mix of high-value solutions, delivering record SSD revenues and further increasing our SSD share.

More recently, we began shipping our first 64-layer NAND consumer SSD. We also introduced the industry's fastest high-density 32-gigabyte NVDIMM-N, which combines Micron's DRAM and NAND to deliver a persistent memory solution that addresses intense data analytics workloads. We have garnered solid interest from enterprise and cloud customers, and customer qualifications are underway.

And we strengthened our talent bench with the recent addition of Manish Bhatia, who leads our global operations. Manish brings extensive experience in managing end-to-end operations, and is focused on driving manufacturing and supply chain efficiencies to reduce costs and improve our agility.

Finally, we improved our financial foundation with the retirement of $2.4 billion of debt. I'm pleased with our accomplishments and believe our focus on speed and execution better position Micron to deliver value to our customers and capture the increasing number of end market opportunities.

I will now discuss trends and results in each of our major markets. Cloud and traditional enterprise data center trends are continuing to drive robust demand for memory and flash storage solutions. Our Q1 SSD revenue to cloud and enterprise customers increased