micron q2-08earningscall
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Micron TechnologyFinancial Conference CallSecond Quarter of Fiscal 2008
©2008 Micron Technology, Inc. All rights reserved. Products are warranted only to meet Micron’s production data sheet specifications. Information, products and/or specifications are subject to change without notice. All information is provided on an “AS IS” basis without warranties of any kind. Dates are estimates only. Drawings not to scale. Micron and the Micron logo are trademarks of Micron Technology, Inc. All other trademarks are the property of their respective owners.
Safe Harbor
During the course of this meeting, we may make projections or other forward-looking statements regarding future events of the future financial performance of the Company and the industry. We wish to caution you that such statements are predictions and that actual events or results may differ materially. We refer you to the documents the Company files on a consolidated basis from time to time with Securities and Exchange Commission, specifically the Company’s most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause the actual results for the Company on a consolidated basis to differ materially from those contained in our projections or forward-looking statements. These certain factors can be found at http://www.micron.com/certainfactors. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We are under no duty to update any of the forward-looking statements after the date of the presentation to conform these statements to actual results.
©2008 Micron Technology, Inc. All rights reserved.
Mike SadlerVP of Worldwide Sales
©2008 Micron Technology, Inc. All rights reserved.
PC Memory Content vs. PC Unit ShipmentsD
eskto
p,
Note
book U
nit
s in
Millions
Averag
e MB p
er System
3,000
2,400
1,800
1,200
600
0
2Q08 – 4Q09 Forecast
2004 Average409 MB
2005 Average555 MB
2006 Average772 MB
2007 Average1208 MB
Growth ’06 – ’07
56%
2008 Average1817 MB
Growth ’07 – ’08
50%
Source: iSuppli
2009 Average2506 MB
Growth ’08 – ’09
38%
©2008 Micron Technology, Inc. All rights reserved.
Memory PricingNAND & DRAM Average (Trade) ASPs
Mar ’07 – Mar ’08-73%
Mar ’07 – Mar ’08-70%
Source: DRAM eXchange
©2008 Micron Technology, Inc. All rights reserved.
©2008 Micron Technology, Inc. All rights reserved.
Continued Technology InnovationLo
g Ce
ll Si
ze
Today
NANDDRAM
<40nm32Gb NAND
58nm1Gb DRAM
68nm1Gb DRAM
Micron’s Module Density Transition
1GB
1GB
1GB
1GB
2GB2GB
2GB
2GB
DDR2
©2008 Micron Technology, Inc. All rights reserved.
©2008 Micron Technology, Inc. All rights reserved.
1.6GHz Operation on
2Gb DDR3 device
Micron DDR3 for High Performance Systems
DDR2 Power Reduction: Aspen Memory®
>70% reduction
14
12
10
8
6
4
2
0
Power comparison of 2GB RDIMMW
atts
per
RD
IMM
512Mb1.8V
Components
1Gb1.8V
Components 1Gb1.5V
Components 2Gb1.5V
Components
Aspen® Aspen®
©2008 Micron Technology, Inc. All rights reserved.
©2008 Micron Technology, Inc. All rights reserved.
Total NAND Market by Application
Source: iSuppli, Gartner, Micron Market Research
NA
ND
in B
illions
of
MB
Mobile Handsets = cards + embeddedComputing = SSD, Hybrid HDD, and PC CacheOther = Portable gaming, Set Top Boxes, Other consumer
Handset Memory Content
Sources: Gartner, Micron Market Research
DRAM
50%
Y/Y Growth2007-2008
NAND*
156%
Y/Y Growth2007-2008
Ave
rage
MB p
er S
yste
m
* Embedded Only
©2008 Micron Technology, Inc. All rights reserved.
©2008 Micron Technology, Inc. All rights reserved.
Continued Technology InnovationLo
g Ce
ll Si
ze
Today
NANDDRAM
<40nm32Gb NAND
58nm1Gb DRAM
68nm1Gb DRAM
©2008 Micron Technology, Inc. All rights reserved.
Increasingly Efficient CapacityPercent High Volume Memory on 300mm Wafers
0%
100%
Start FY07 Today FQ3-08*
* Forecast
©2008 Micron Technology, Inc. All rights reserved.
Mobile DRAM / NAND MCPs
Source: Micron Market Research
Micron competes in the fastest-growing segments of theMobile MCP market with its high-end portfolio
2007 2010 2013
NAND + DRAM
$2.0BNAND + DRAM
$4.0BNAND + DRAM
$8.5B
<1MP
1 MP
2 MP
3 MP
4 MP+
Voice only
Sources: Gartner, iSuppli, Micron Market Research
Handset Shipments by Camera ResolutionH
andse
t Sh
ipm
ents
by
Cam
era
Res
olu
tion (
Millions)
Note: Primary camera only
©2008 Micron Technology, Inc. All rights reserved.
Micron’s Lineup
1.8-inch & 2.5-inch, 32GB & 64GB SSD for notebook and performance computing
Embedded USB, 1 to 8GB SSD for cost-effective industrial and blade server applications
©2008 Micron Technology, Inc. All rights reserved.
Steve AppletonChairman and CEO
Financial Summary GAAP
©2008 Micron Technology, Inc. All rights reserved.
Financial Summary Non-GAAP Q2-08
©2008 Micron Technology, Inc. All rights reserved.
Reconciliation of GAAP to Non-GAAP Financial Measures
©2008 Micron Technology, Inc. All rights reserved.
OverheadDollars in millions
Sales, General & Administrative
Research & Development
©2008 Micron Technology, Inc. All rights reserved.
Micron
Partners
Partners
Micron
$2,467
$1,580
Capital ExpendituresDollars in millions
©2008 Micron Technology, Inc. All rights reserved.