Micron Q3-08_earnings_call

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Micron Q3-08_earnings_call

  1. 1. Micron Technology Financial Conference Call Fi i lC f C ll Third Quarter of Fiscal 2008 © 2008 Micron Technology, Inc. All rights reserved. Products are warranted only to meet Micron’s production data sheet specifications. Information, products, and/or specifications are subject to change without notice. All information is provided on an “AS IS” basis without warranties of any kind. Dates are estimates only. Drawings not to scale. Micron and the Micron logo are trademarks of Micron Technology, Inc. All other trademarks are the property of their respective owners. © 2008 Micron Technology, Inc. | June 2008 2 MICRON CONFIDENTIAL
  2. 2. Safe Harbor During the course of this meeting, we may make projections or other forward- looking statements regarding future events of the future financial performance of the Company and the industry. We wish to caution you that such statements are industry predictions and that actual events or results may differ materially. We refer you to the documents the Company files on a consolidated basis from time to time with Secu t es and c a ge Commission, spec ca y t e Co pa y s most recent Form Securities a d Exchange Co ss o , specifically the Company’s ost ece t o 10-K and Form 10-Q. These documents contain and identify important factors that could cause the actual results for the Company on a consolidated basis to differ materially from those contained in our projections or forward-looking statements. These certain factors can be found at http://www.micron.com/certainfactors. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We are under no duty to update any of the f f f forward- looking statements after the date of the presentation to conform these statements to actual results. © 2008 Micron Technology, Inc. | June 2008 3
  3. 3. Ron Foster CFO and VP of Finance © 2008 Micron Technology, Inc. | June 2008 4
  4. 4. Financial Summary Q3-08 Q2-08 Dollars in millions, except per share Net Sales $1,498 $1,359 Gross margin 48 (43) Operating (loss) (225) (772) Income tax (provision) (13) 4 Non-controlling interests in net ( g (income) loss ) 8 () (6) Net (loss) (236) (777) Diluted (loss) per share ($0.30) ($0 30) ($1.01) ($1 01) Shares in diluted EPS calc 772.8 772.4 © 2008 Micron Technology, Inc. | June 2008 5
  5. 5. Operating Expenses D ll i illi Dollars in millions $243 $195 $184 $180 $170 $163 R&D $153 SG&A $143 $134 $120 $116 $ $112 FQ2-07 FQ3-07 FQ4-07 FQ1-08 FQ2-08 FQ3-08 © 2008 Micron Technology, Inc. | June 2008 6
  6. 6. Capital Expenditures Dollars in millions $3,244 $777 $2,157 Q3 $577 $1,207 Q2 $693 Q1 $1,260 $887 FYTD2008 FYTD2007 © 2008 Micron Technology, Inc. | June 2008 7
  7. 7. Mike Sadler VP of Worldwide Sales © 2008 Micron Technology, Inc. | June 2008 8
  8. 8. Memory Pricing NAND & DRAM Average (Trade) ASPs DRAM Avg ASP / 1Gb DDR2 NAND Flash Avg ASP / 8Gb MLC $4.0 $3.5 $3.0 $2.5 $2 5 $2.0 $1.5 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Source: DRAM eXchange © 2008 Micron Technology, Inc. | June 2008 9
  9. 9. PC Memory Content vs. PC Unit Shipments Desktop MB/System Notebook MB/System Notebook Units Desktop Units 100 3,000 80 2,400 Deskto Notebook Units in Millions Ave erage MB per Syste s 1,800 60 1,200 40 op, em Growth Growth Growth ’06 – ’07 ’07 – ’08 ’08 – ’09 600 20 56% 56% 33% 2004 2005 2006 2007 2008 2009 Average Average Average Average Average Average 413 MB 555 MB 772 MB 1207 MB 1882 MB 2499 MB 0 0 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-06 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 All data is in calendar quarters Q2-08 – Q4-09 Forecast Source: iSuppli © 2008 Micron Technology, Inc. | June 2008 10
  10. 10. Micron’s Module Density Transition DDR2 8GB 100% 2GB 2GB 4GB 2GB 75% 2GB 2GB 2GB 1GB 50% 1GB 1GB 1GB 1GB 25% 512MB 1GB 256MB 0% FQ3-07 FQ4-07 FQ1-08 FQ2-08 FQ3-08 © 2008 Micron Technology, Inc. | June 2008 11
  11. 11. Estimated DRAM & NAND 300mm Production Micron Samsung Hynix 80% mory Productio on 300mm m Percent of 300mm Memory Production on P 40% m Percentage of Mem 0% 2007 2008 Source: Micron Market Research © 2008 Micron Technology, Inc. | June 2008 12
  12. 12. Handset Memory Content 2,011 2000 DRAM NAND* 50% 178% 1500 YoY Growth YoY Growth tem 2007-2008 2007-2008 1,182 1 182 Avera MB per Syst DRAM 1000 NAND age 526 500 189 73 51 36 28 24 12 0 2006 2007 2008 2009 2010 * Embedded Only E b dd d O l 2008 – 2010 Forecast Sources: Gartner, Micron Market Research © 2008 Micron Technology, Inc. | June 2008 13
  13. 13. Total NAND Market by Application 12,000 Other 10,000 , NAN in Billion of of MB Non-Mobile lions MB Flash Cards 8,000 NAND 147% ns Mobile Handsets NAND in Bill YoY Growth 6,000 2007-2008 USB Drives ND 4,000 MP3 Players (Flash Based) 2,000 Computing g 0 2007 2008 2009 Mobile Handsets = cards + embedded Computing = SSD, Hybrid HDD, and PC Cache Other = Portable gaming, Set Top Boxes, Other consumer 2008 – 2012 Forecast Source: iSuppli, Gartner, Micron Market Research © 2008 Micron Technology, Inc. | June 2008 14
  14. 14. RealSSD: The Coming Revolution Notebook Penetration 40% 35% 30% 25% 20% iSuppli 1Q08 15% 10% Gartner 1Q08 5% 0% 2007 2008 2009 2010 2011 2012 2008 – 2012 Forecast © 2008 Micron Technology, Inc. | June 2008 15
  15. 15. Continued Technology Innovation 68nm 1Gb DRAM Log Cell Size 58nm 1Gb DRAM 34nm 32Gb NAND Today DRAM NAND © 2008 Micron Technology, Inc. | June 2008 16

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