Micron Technology, Inc. (NASDAQ: MU) stock lost over 6.2% on 30th September, 2020 (As of 1:41 pm GMT-4; Source: Google finance) post fourth quarter of 2020 performance.
The firm’s traditional on-premise enterprise demand was lower during the quarter hurt by fall in IT investment from businesses due to the impact of the pandemic. For FY20, total revenue fell 8% yoy to $21.4 billion. DRAM revenue fell 14% yoy to $14.5 billion, which accounts 68% of total revenue. FQ4 NAND revenue lost 8% yoy to over $1.5 billion, representing 25% of total revenue. NAND revenue fell 8% sequentially but rose 27% year-over-year. Bit shipments were approximately flat sequentially and ASPs declined in the upper single-digit percent range quarter-over-quarter. Revenue for the Mobile Business Unit was $1.5 billion, down 4% sequentially and up 4% year-over-year. For the fiscal year, MBU revenue was $5.7 billion, down 11% from fiscal 2019. Revenue for the Storage Business Unit fell 10% sequentially to $913 million, while rose 8% year-over-year. For the fiscal year, SBU revenue fell 2% yoy to $3.8 billion, while Embedded Business Unit was $654 million, down 3% sequentially and down 7% year-over-year. Demand continued to be below historical levels due to the impact from COVID-19.
On the bright side, the firm’s 128-layer, first-generation RG NAND technology entered volume production in fiscal Q3 2020 while in fiscal Q4, the firm started shipping RG-based consumer SSDs. The firm is progressing second-generation RG node, which is expect to be introduced into volume production during fiscal 2021. In Mobile, Micron is well-positioned to win in the 5G era as a supplier to all the major smartphone manufacturers with an outstanding portfolio of industry-leading low power DRAM and managed NAND solutions.
In graphics, GDDR6 shipments rose to support next-generation gaming consoles, in addition to the initial shipments of breakthrough GDDR6X product. Going forward, the data center market is expected to start its transition to DDR5 in the second half of fiscal 2021, while the firm started sampling DDR5 server modules to customers. In networking, 5G deployments, especially in Asia, drove healthy DRAM bit growth quarter-over-quarter.