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LONDON, UK / ACCESSWIRE / April 5, 2017 / Active Wall St. announces its post-earnings coverage on Micron Technology, Inc. (NASDAQ: MU). The Company reported its second quarter fiscal 2017 financial results on March 23, 2017. The semiconductor manufacturer surpassed revenue expectations. Register with us now for your free membership at:

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One of Micron Technology's competitors within the Semiconductor- Memory Chips space, Netlist, Inc. (NASDAQ: NLST), reported its financial results for Q4 and full year ended December 31, 2016, on Thursday, March 30, 2017. AWS will be initiating a research report on Netlist in the coming days.

Today, AWS is promoting its earnings coverage on MU; touching on NLST. Get our free coverage by signing up to:

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Earnings Reviewed

For the three months ended March 02, 2017, Micron reported revenues of $4.648 billion, up 17% compared to Q1 FY17 and 58% higher compared to Q2 FY16. The increase in the Company's revenues on a q-o-q basis was due primarily to a 21% increase in DRAM average selling prices and an 18% increase in trade NAND sales volumes. Micron's revenue numbers topped analysts' consensus of $4.645 billion.

"Strong demand and limited industry supply for NAND and DRAM solutions, combined with significant progress on our cost reduction plan, produced excellent results for our second quarter," said Micron's CEO Mark Durcan, "I'm proud of the team's execution on critical technology and operational initiatives, which will allow us to continue to capitalize on market trends."

For Q2 FY17, Micron's gross margin was 36.7% and net income attributable to its shareholders was $894 million, or $0.77 per diluted share, compared to gross margin of 25.5% and net income of $180 million, or $0.16 per diluted share, for Q1 FY17 and gross margin of 19.7% and a net loss of $97 million, or ($0.09) per diluted share, for Q2 FY16. The increase in the Company's GAAP gross margin on a q-o-q basis was 11.2% higher due to increases in DRAM average selling prices and manufacturing cost reductions for both NAND and DRAM.

On a non-GAAP basis, Micron's gross margin was 38.5% and net income attributable to its shareholders was $1.03 billion, or $0.90 per diluted share, for Q2 FY17 compared to gross margin of 26.0% and net income of $335 million, or $0.32 per diluted share, for Q1 FY17. Gross margin was 20.4% and net income came in at $12 million, or $0.01 per diluted share, for Q2 FY16. The Company's earnings numbers matched market estimates.

Segment Results

During Q2 FY17, Micron's compute and networking business units reported revenue of $1.92 billion, up 30% sequentially due to firm demand in a robust pricing environment. The segment's non-GAAP operating income was $736 million, or 36% of revenue, up from 14% the prior quarter, enhanced by the pricing environment and better performance on costs.

The Company's mobile business unit delivered Q2 FY17 revenue of $1.08 billion, up 5% sequentially, driven by a stronger pricing environment. The segment's non-GAAP operating income was $170 million, or 16% of revenue, as pricing strength combined with improved costs.

For Q2 FY17, Micron's embedded business unit delivered fiscal Q2 revenue of $590 million, up 2% sequentially. The segment's non-GAAP operating income was $193 million, or 33% of revenue. The results were primarily driven by increased automotive unit shipments and increased average selling prices of DDR3 and NAND on a like-for-like basis in the Company's consumer and connected home segments.

Micron's storage business delivered revenue of $1.04 billion, up 21% sequentially, in Q2 FY17. The segment's non-GAAP operating income was $71 million, or 7% of revenue. The results were primarily driven by strong growth in client and cloud SSD shipments and lower costs.

Balance Sheet

Micron's investments in capital expenditures, net of amounts funded by partners, were $1.17 billion for Q2 FY17. The Company ended the reported quarter with cash, marketable investments, and restricted cash of $4.58 billion.

Stock Performance

On Tuesday, April 04, 2017, the stock closed the trading session at $28.59, marginally falling 0.17% from its previous closing price of $28.64. A total volume of 13.94 million shares have exchanged hands. Micron Technology's stock price soared 11.20% in the last month, 26.78% in the past three months, and 61.25% in the previous six months. Furthermore, since the start of the year, shares of the Company have surged 30.43%. At Tuesday's closing price, the stock's net capitalization stands at $31.12 billion.

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