Micron Technology has delivered solid results for its second quarter of fiscal 2020, when revenues hit the high end of its guidance despite the coronavirus pandemic.
Micron reported net income of US$517 million on revenues of US$4.8 billion for the fiscal second quarter ended February 27, 2020, with a 29.1% gross margin. Diluted EPS for the quarter came to US$0.45.
Micron saw sales of its DRAM products decline 11% sequentially and 26% on year in the quarter, whereas sales of its NAND flash devices increased 6% on quarter and 9% from a year earlier. Of Micron's NAND flash segment, SSD revenues surged approximately 20% sequentially during the quarter driven by robust demand for datacenter applications.
A boom in remote work has led to stronger-than-expected demand coming from the datacenter sector, Micron indicated. Memory demand for datacenter applications remains promising, which may lead to supply shortages, the chipmaker said.
Micron continued it has also seen demand pick up for notebooks to support work-from-home and virtual learning initiatives.
However, Micron expects demand for smartphones, consumer electronics and automobiles during the second half of the company's fiscal 2020 to be below its prior expectations, due to the virus hitting demand and consumer confidence.
Micron estimated fiscal third-quarter revenues at between US$4.6 billion and US$5.2 billion, with US$0.55 plus or minus US$0.15 in EPS.
In addition, Micron disclosed that as of March 24, two of its employees have tested positive for the coronavirus and are receiving appropriate medical attention. "We have used contact tracing to quarantine individuals who were in close contact with either infected team member; we have also implemented more restrictive controls of on-site access, social distancing and service protocols," said Micron CEO Sanjay Mehrotra. Micron said the infections have so far had no impact on Micron's manufacturing operations.