Micron Expects Recovery in 2020, Received Supply Licenses for Huawei
Micron Technology Inc said on Wednesday it expected a recovery in 2020 and that it had received all requested licenses to supply some products to Huawei Technologies Co Ltd.
The company reported better than expected quarterly earnings on an uptick in demand for memory chips after a tepid year.
Micron also faced uncertainty when Washington placed Huawei on a so-called entity list in May that effectively banned U.S. firms from supplying to the Chinese company.
The chipmaker said on Wednesday it had received all requested licenses that enable it to provide support for certain products and qualify new products for Huawei’s mobile and server businesses.
The licenses are not expected to have a material impact on the company’s revenue in the next couple of quarters, Micron said.
"Micron posted solid first quarter results, delivering good profitability and positive free cash flow. With our strong execution and improving industry conditions, we are optimistic that Micron's fiscal second quarter will be the cyclical bottom for our financial performance," said Micron Technology President and CEO Sanjay Mehrotra. "Our significantly improved competitive position, dramatically stronger product portfolio, structurally higher profitability and investment-grade balance sheet position Micron very well to drive long-term shareholder value."
Mehrotra said he expected the business to recover in the third quarter of fiscal 2020.
The company's forecast second-quarter revenue between $4.5 billion and $4.8 billion.
For the first quarter, Micron earned 48 cents per share on an adjusted basis.
Net income attributable to the company fell to $491 million in the quarter ended Nov. 28, from $3.29 billion a year earlier.
Revenue also fell to $5.14 billion from $7.91 billion for the same period last year, but it was higher than the $4.87 billion for the prior quarter.