Micron reveals its upbeat outlook, stocks rise
The company hopes it’s through the worst of a slump in the memory-chip industry
Stocks impacted: Micron Technology Inc. (MU)
The memory chip manufacturer posted revenue of $5.14 billion, down 35% from the year earlier quarter. Still, the result was ahead of both the company’s guidance and analyst consensus at $5 billion. For the fiscal second quarter, Micron sees revenue of $4.5 billion to $4.8 billion. Operating cash flow came in at $2.01 billion versus $2.23 billion for the prior quarter and $4.81 billion for the same period last year. Micron gave a strong sales forecast for the current quarter and said it expected a recovery in 2020 after a cyclical bottom in the second quarter. Also, it had received all requested licenses to supply some products to its largest customer, Huawei Technologies Co Ltd. Still, the licenses are not expected to have a significant impact on the company's revenue in the next couple of quarters as it would take time for Micron to work with Huawei to make sure its chips work in Huawei's newest phones, the company’s chief business officer Sumit Sadana noted. Shares of Micron rose nearly 4% in extended trading.
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