MU - Earnings call 4 2023 | Micron Technology, Inc.

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Operator

Thank you for standing by, and welcome to Micron's Post-Earnings Analyst Call. [Operator Instructions] And now I'd like to introduce your host for today's program, Samir Patodia, Investor Relations. Please go ahead, sir.

Samir Patodia

Thanks, and welcome to Micron Technologies' fiscal fourth quarter 2023 sell-side analyst call back.

On the call with me today are Sumit Sadana, Micron's Chief Business Officer; Manish Bhatia, our EVP of Global Operations; and Mark Murphy, our CFO.

matters and today and supply, the regarding forward-looking other reminder, demand market our a we're include discussing statements matters. As expected results future that may the to XX-Q of statements cause you statements XX-K results. to forward-looking are and we to for affect our refer and These the file most documents with Form subject made today. We discussion actual including risks materially differ uncertainties results our the from SEC, that the a risks may recent now can Q&A. we for Jonathan, open up

Operator

Our JPMorgan. comes from Sur first the question line Harlan of from

Harlan Sur

is So of within the still data anticipating year. calendar customer center, beginning the normalizing team inventories excess next

You've HBM, portfolio. center data LPDDR, DDRX, and got then your cloud, DDRX, SSD got you telco enterprise markets. Product-wise, enterprise, have you've entire

product drawdown? are areas And growth conversely, data by where most here what market like in the seeing sequential the either are then inventory in that guys end areas slower QX, driving center weakness strength? or type, on the of you So are

Samir Patodia

Harlan, Yes. question. for thanks the

Sumit, joining just minutes. I few call, a in will join us So will the announced be who

yet. can hasn't with answer. follow questions, details we'll So your up with call arrived -- off add he him more have and of off start but maybe to We'll start Manish, answer maybe an

Manish Bhatia

-- playing Yes. and out own inventory calling the to one. can, not the I with of out. their Mark just amorphous and can center different one a thanks for lot fact this No, going question, is was I is do dynamics area. say categories data Harlan, thanks It's for that

industry the that, industry be shorter constrained the adopt even and fiscal would are more that still continues the segments of inventories center as some for to as we next and of the and there, point The DDRX sure should tighter ones the expect we our crossover more today that value there be -- area of think of market, I known of memory it's over 'XX more that data part middle DDRX. in are relatively bandwidth well the become is are even a step constrained year of for that market. into -- supply. High -- to DDRX year. higher

it we of 'XX. And solutions somewhat will customized, calendar unique with then our talked think we of that customers. earlier some about us, we've the those are be in and LP have of some some For solutions are

there's and we're customers, where of those some markets, able side, are of that at terms where side. and I'd are and side broadly of DRAM but XXXX. a data levels DDRX side. there In data center, being the different the least the say the And NAND seeing classic -- longer-tail broadly, of then there's I of both more including think that couple different where today, about improve terms in of SSD -- we in hyperscaler the the in the through see on go there. There's DRAM to between segments inventory the pricing good is then both feeling are center as And inventory in the

Harlan Sur

we trending fiscal up the forward? Perfect. inventory? cost the associated of going gross appreciate in chew how I from just in you that impact words, So margin And And can there. other to QX? the quarterly see higher charges us on Okay. like insights and sort underutilization here Mark, underutilization impact what's then, due do the current

Mark Murphy

Yes.

XX% underutilization may X% will then that they'll going but as the are last on been idle this the part, idle, 'XX, will saw the at I've They'll as that underutilization QX, output to first. lower the takes continue And gradually come puts quarter output. see we've be point, underutilization period and all they'll seen costs then to to sit as to that in same we've charges, complexity, referring in we we're had we've in the increasing down, those QX So move of other we of QX. that side the and this on come just we approaching the at sort continuing about so year various and this the over and, said time, through here this XX% helpful, down fourth charges to summarize in as we maybe over as be wafer been over in that's specifically saw kind before. all wafer utilization because through the lower And since increase we're few today, charges, driving of fiscal it quarters. We've and

on and as the well. write-downs of back associated the that we're on end the Now sell-through,

in you balance. And recognized in the third so quarter, sell-through of recall, $XXX quarter third million, into we associated fourth billion inventory. in We We came benefit $XXX with $X.X the had that in the did about million write-down quarter. with did quarter sell-through benefits the we write-off second million quarter. the If the another we or of $X.X about under of cost realized fourth billion the the $XXX lower the of

quarter the fiscal out with at cost nearly $XXX $X the -- $XXX and in then second non-GAAP then that about and enter billion about 'XX will GAAP the realize And inventory million of -- in lower be We'll be that realize. the million, results the will that point. we benefit So to quarter. first balance, sorted

the billion. would last that I million $XXX a through $XXX inventories, -- ran fiscal thing cleared. sadly, this. I because of analysis. of I did talked with make 'XX, -- in underutilization. down impact we wrote $X.X have clear $X.X we've to so associated underutilization that one as sure million million did about, about back about your want that about 'XX. We period recognized say that's $XXX through of fiscal to $XXX costs million the in and in About it's in billion just say maybe we think I

got $XXX write-downs. -- then the there's that written actually inventory and associated So million with that another off

million clear $XXX that will or So left million $XXX early... we've left another in got

Operator

And line our Ambrish of from next comes Capital from question BMO Markets. the Srivastava

Ambrish Srivastava

Mark, it's just confusing.

thing. last had a I more complicated. It's bit this think on you

you million the So not write-down, the inventory inventory, the from and that's write-down, $XXX million right? of associated with a just out part that's $XXX called

Mark Murphy

Which $XXX talking you million are about?

Ambrish Srivastava

Well, $XXX said inventory. you million which with impact in from fiscal the cost, through billion $XXX I $X.X and us associated inventory. with also the underutilization 'XX, walked just $XXX took thought remaining which said was period as you you then you million, $XXX the million million And bridge, of

that's... So

Mark Murphy

million associated already and cleared write-down, million I'm of with that with to $XXX that's clear inventory of the $XXX passed costs, it it in million and Yes, underutilization. in was was $XXX left of as period of talking million has the So inventories, inventories that the leaves million -- costs higher going $XXX early 'XX. is with the okay? $X.X associated through

Ambrish Srivastava

$X.X Off of just that's right? the [indiscernible] billion. $X.X billion, So

Mark Murphy

walk. a That's $X.X Exactly. billion

Ambrish Srivastava

Got it. it. Got Got it.

normal that factories charges we what -- underutilization between then get low you a that are fact started just running versus And close to come when the production the causes rate. continue Okay. back. taken path, the are overhang back underutilization factories I'm until the XX% being and that lower you should trying to the of mechanics gap understand down when to

Manish Bhatia

give I'll the the Mark accounting picture. Ambrish, you dynamics, between others cover So mechanics. and I'll operational clear start, maybe can and cover and it maybe the then then a will X,

customers. with desire said in be newer nodes with before, the we've So to migrate to able product to our to able underutilized continue technology this equipment products provide to to the portfolio and the performance and be to towards support as better

more the utilizing been converting have We of nodes. equipment underutilized to new towards

in as of -- right? bringing the you on capacity As are newer not then nodes, become of wafer the reset So underutilized counts the fully them utilizing is baseline. implementing do of they're anymore down. longer once baseline the where coming process that, step you you're start of But new and lower factory each capacity reducing capability part those the really you're they that, being tools the

equipment or newer gradually the costs So don't is a towards happens, a off equipment amount you're new higher capacity. maintain we as by to charged that utilizing sort production nodes. because towards be that's that underutilization period newer able towards node, lowered the to utilizing And equipment the baseline buy of

equipment offset helps the us have. helps we CapEx. It it us utilize So that

to gradually way. period end Mark as capital isn't do capacity production we just cost effective as the So if at this while up have end maintained production capacity costs go conversions, down, do with of has as efficient which doing would we the it obviously more said, but it's but we lower will the day, full were the the

Mark Murphy

Maybe just to add, Ambrish.

be taken going periods, the being just we occur. inventories the $X.X wafer. capacity And these the will be to severe as the or just costs inventory billion. hung P&L time, over It's more through can capacity were clear billion, that absorbed as the our it creates still through a period costs. that's higher comes -- as recognized pass versus in those $X.X wafer underutilization of talking inventory. What's pass So inventories the when it's enter to underutilization and as those to per in about up is cost baseline and reset down, going of lower, is portion then is of when the costs you And generally, happen versus being immediately this

Operator

Citi. question comes And next from Chris Danely the of line our from

Christopher Danely

to rates? revenue to crank what you level you utilization? what get revenue to of to, be full get So do I get to would or at back you do guess, need level to utilization need up And to

Sumit Sadana

Manish. go -- Well ahead,

Manish Bhatia

operationally can talk perspective, Sumit. from just a little then and bit start a business you it I'll about

guided more I business of then come being previously that the -- see to explaining, right? while to So the and our profitability just the the Just migrating to was to WFE -- it we that we've I to of that still be profile new inventories we about to don't technologies way utilize CapEx more right? We've the think that underutilized newer we're be towards talked able able that nodes. equipment change have do to able and is have as and to transition the -- down, return see to, I down the and yet

make underutilized. towards nodes. it's able So longer the positively being to It's to no transitions newer contributing those us

more it's areas or the need of supply. to CapEx other manage how right the able invest improve, business, then able we now. down then see supply So be to that profitability to whether would really we're what as drives supply guiding able see our we coming into grow inventories more in look than to about And pricing being be we produce or to our new more, to

Sumit Sadana

Yes.

is This everyone I redeployed happening structural kind we nodes, -- the the expand to a -- our this said to which [ think ] wafer industry in flow equipment it dramatically and as trying emphasize is, well, capacity earlier -- thing to where reduction mean, what as that I I just connect because and across happening. that nodes CapEx have back been other one Manish be so said profitability cash there to reducing Sanjay from want had an new our is impacted. environment of operational is has is of

legacy occurring is means is it's month, switching still this of after -- So transition industry-wide on in whole reduction we done except going an that's back will are as we reduced possible situation transition. done some the quarter, of that that underutilization after we which underutilization underutilization occurring. running level be is this gone just we to do thing to capacity, our from there nodes capacity isn't And through more on have this we amount every the even transition, wafer with have of every maybe where

clear to especially wanted ultimately, on down, I a make underutilization on back capacity be will to just there is cash new be increased since increased CapEx the to it's There of wafer again. investment will coming improve that flow, CapEx bids, improved sure performance of create wafer capacity required, course, justify switching that for edge. leading the margins, the lot require more financial that investment So which, to pricing, won't us increase

Christopher Danely

on clarification at to? of or to or a optimal looking dollars guys. get Is in level just trying And that, you're inventory terms days Sure. there an

Mark Murphy

what the which COGS if levels, set Yes. $X -- assume We look we've strategic we on current billion is let's about we $X at ultimately, days, current of you have said stock just call -- We're hand. target say, if or you so. billion our XXX targeting

work So we've need billion we or got inventories of that through. $X.X to so

those. through working are We

levels and talk a the driven spending in our heard of You've pricing inventory today supply about by environment are industry. really, the And discipline. and our transitions associated the lot

inventory weeks on our So we're of, go the call go above-target let's those managing actively few watching back of that we'll only hand. it, do down. fiscal We inventories as down. into a half believe 'XX, We're have we

And And so a peak transpired, we 'XX, quarter, would DIO second they time said ago even the What said you're that is did. in it dollars peak think the that it. already we'll long then be better place. we has which But an of third we in which in quarter did. would seeing

closely. so just to continue we're it to going manage And it and monitor

Operator

next from Rakers And from question Wells our comes line Fargo. Aaron the of

Aaron Rakers

I to to like to what quick got ones. the apologize. Based I million want And here. underutilization you $XXX have full I said, for in-period your all correct that. that I'm just it trying the $XXX X Is quarter last this on Mark, I've make that about correct? looks year. sure just cost million was be clarify at numbers

Mark Murphy

You're QX? talking costs period in

Aaron Rakers

Exactly. Exactly. Yes.

Mark Murphy

million. $XXX

Aaron Rakers

million. $XXX

about quick of first it question like, my year. million got, $XXX million sounds be, here. But of guess curious would of think about you've recovery, is to you of trying half the obviously, then pace into gross the to expenses the coming I'm think model. $XXX pace the to follow-up the I And focus the how more through margin carry the back on operating Okay.

good managing expenses. done job You've operating a

do as to consider last bringing we margin lower is about quarters? fundamentals think OpEx through As just OpEx thing think there you turning structural these Or in in? a being about improving, several positive, how gross we went structurally

Mark Murphy

that's some expenditures. that OpEx the we compensation see were first, are driven of or R&D-related fourth to and and downturn worst during normal, moving the resumption certain downturn, we on of Well, reduced programs have quarter then timing up by that

said to be slightly the of then single rest up $XXX we digits. up the by haven't we from million. And we've So guided year, but the $XXX that million year quarter, guided would low

$X.X X% So the and up, below X%, full you end on you or do with, that it, up billion year. call

and So productivity a to the our those did We gains it work to best we're hold we're lot going gains. of year, going manage very productivity have to through tightly.

Aaron Rakers

double real And -- that to be then kind finally, you that just low one still Is estimated change your impact didn't of one. quick from China Is digits? estimate.

Mark Murphy

[ We in managing you did estimate. update. quarter, say. that that but We're want obviously number. not been that below ] as It's has number impact to the no change actively, first below it The

Sumit Sadana

-- that the low that just total is number clarify said. Yes. I to had want double-digit you the was we quoted risk

have mitigation So had work which then on. we China some said, in impact as are Mark less is success in And some to the than that. factors we continuing

number And the net so is as obviously, mitigation well. there is that a net of lower

Operator

question next Vivek the our of Bank Securities. comes And from Arya from America line of

Vivek Arya

a I had few as well.

contemplated have, would market generally to competitors, their when hold First, outlook how lot what kind of for And capability strength HBM of to I market share in also year? kind we of your technology the your visibility on Korean you ability at characterize in that? Because understand you is the this technology next that of talking look they're share. and their a but achieving

next in and So I'm of your HBM do confidence, curious, have assumptions for you kind visibility and share market year? is rough what just what

Sumit Sadana

the shoulders customers Yes. a order get to head of about well because well have our have amazingly commercialized And good generation. and hands excited we to competitors, HBMXE industry-leading as straight both above capability performance HBMX perspective HBMXE technology from their I are that samples in as power versus that mean competitors. our We consumption below capability and very in we we have went the ahead. this skipped

about this. excited very are we so And

Our about customers are this. very excited, very enthusiastic

are called, we as getting so we now product And on mentioned. focused the have

ramp, early fiscal up, become embedded -- 'XX lead high-quality, and and now calendar which allow. build will start And big to ramp production 'XX. And maps, customers' and XXXX, to back we then the of as will half the in get hard in share the and focused then been into and there get on, start then will that have road share the from calendar goal which meaningful we ensure in of pretty the in be from on to have We ramp driver there be our HBMXE as as XXXX. our DRAM qualification there supply our is similar to soon HBM our high-reliability

to that's in on, So that. we focused and plan what are our execute confidence have we

Vivek Arya

follow-up, mentioned margin. Mark, my think, for I you And gross

You EPS said than think imagine QX? to about I in And said just QX more our right positive we was gross the about when are positive? Is -- expectations turns QX, QX and just how set what clarify in Any was for what said, QX, it's of QX that wanted margin. or terms I that But QX. QX? so way, gross margins should

Mark Murphy

Yes. Thanks.

of consistent margin and we guided quarters. off this improved continued this out the quarter points in gross -- said fourth improvement negative expect several with we margin is second XXX We the of what do We gross expect off -- X% to gross margin, X% We do improvement quarter the basis quarter-to-quarter. on in negative actuals. first. continuing ] [ So in relative

gain We further just the in and half, expect expect business second in half. pricing the that momentum second volume to the and so the in leverage improvement on

be fiscal and is it to time, we I of half. notable And positive think third fourth that as half, that gross fourth the effect update as expect saying the gross improvement. And expect in before quarter. And no we that through This gross But do is gross positive that and there not profitable second we're we last stronger within positive quarters, so pricing to be that the said profitability, be margin. did far be that time, our so in We've that. margin update would to margin said profitability. so the half through 'XX, second again, second margin we will

an profitability. as incremental relates So to that's think it I improvement

Operator

our BNP the Karl line from question comes of from next Paribas. And Ackerman

Karl Ackerman

if questions, may. Two I

restrictions, quarter, restrictions current should Manish was business we impacted the quarter? your or the data by center that Sumit, but in the assume that your the you for are in CAC it's but impacting networking CAC noted business smartphone August suppose November First, I and on just

Sumit Sadana

Yes.

that So the center on data to CII and customers impact type of operators, meant largely be limited was networking CII who that means deemed be to CSC to to operators. relate are and that products

we about don't smartphone no, impact is center see The that to spoke an the So impact networking. the we business. in data and

Karl Ackerman

that for clarification. you Thank

You would your CapEx to in a I and perhaps that could double here. what guess making That to I'm fiscal of the absolute that the year, test guess just baseline just portion fiscal and very 'XX, next total to relative to is indicated in both you're CapEx size WFE. terms in investments trying -- packaging relative terms maybe helpful 'XX? of packaging but of I be find [indiscernible]

Manish Bhatia

I that don't broken out before. think we've

think and I construction on provided, WFE will we that is as the color 'XX 'XX meaningfully, assembly going down. think to CapEx, you going tests are about be increasing both be that while to

you so And of 'XX's the total mix that number both that above and can slightly -- fiscal we've said the will year CapEx imagine be number.

a as is can you going up. percentage that tests imagine So assembly

Mark Murphy

it's say can be We XX%. generally could typically year, next above that I XX%. it believe below

I it, think it's a simple way Karl. to frame

Manish Bhatia

a the our that ramp ramp about And put of that HBM place. talking support portion strong are -- -- we to HBM about that in customers that we're Sumit was to that we're and that is the significant working increase excited

Operator

next from line our from Brian And Chin the of Stifel. question comes

Brian Chin

or like penalty the of think sort peers and the larger The the next your inclusive more Xx, for thoughts? could that, do else that? could doubling importantly, the think just of on would reduction et out you capacity. said, you to of how of footprint. But What's output other expected. have kind much can a Maybe industry elaborate and bigger year? denominator take What over something comparison of on in I output HBMXE XX% than die-size you your bit I as conversions, and the kind And be inclusive then DXs, peers a back is sort cetera, It of efficiencies of you the line discussion.

Manish Bhatia

Sure.

on I'll of just a nodes, will you will reduced this which just that's that multiple production the clarify. DRAM looking Or the amount the sort on HBM looking those have call. conversion we for maybe absorb earlier question? Are for effects on on between are on of an you effect? both overall significant on be a a of Are HBM a So capacity, production capacity looking and and HBM we the really discussed? comment for comment -- based discussed wafer just you to then or on number the newer just you

Brian Chin

couple sizable the that, since well, attributions, all-in, Yes. So there's all-in HBM, that's of it of maybe the it but as portion the like. maybe also sounds it the Maybe of different the be should right? a HBM, because driven amount by a

Manish Bhatia

Yes.

that's in I overall Xx logic One of top have the get capacity it's on and of a that you an die overall more a of of kind to the spec, -- fabs size terms die think of the that that die -- doubled the of for the standard this JEDEC's so color, then of the begin interface yields we factors. performance the derived take for production complex that on couple and you to are for HBM up capacity the right, It's package. able to give just the And of to integration. Actually, because impact in complexity just per the that some then there standard gets On products, more different produced you be number, the top complex a needs have the And size everyone little from back-end will high of well. it that, the the of die. bit, with. lower have HBM. And interface in approximately than industry. is what's product, to be production also kind the of needed generation each as is because bit

impact there. Xx you put more up that you So together, end seeing when all than

can of to wafer each most supplier. their Xx out overall XXXX be And of for estimate peak coming percentage XX% because right? And we you of duration is in industry, for the convert is to then then can of the levels. that And But on what newer than bits imagine, our HBM you underutilized capacity. approaching on based starts for today, HBM, that reduced the said vary estimate as so depending capacity just nodes, of that will we're it from more we've

for towards in of have we newer As us, -- equipment nodes. we moving taken implemented and wafer be on will capacity true 'XX, that because we're the most fiscal that we've where to it structural look reduction of utilized end

their sense gives those So for of project they're that you both it, their equipment, to you are whatever with is up how repurpose only with structurally for take end X, plans and for both be wafer statement to others of industry lower able a just HBM can and DRAM it CapEx capacity. Obviously, And to the going the a that's NAND. underutilized in along DRAM. and

Brian Chin

Okay. wafer structural type if your you of to not of footprint? underutilized, approach actually rates full just on consolidation you did that, the you're utilization XX% could increase the And based and starts, clarify

Manish Bhatia

make Maybe I'll sure clear. I'm just say it to again

underutilized. It As we wafer will be longer will technology richer to through it it no taking nodes. make of year, be make nodes. lower be we a that be Does start that's in will go baseline, part the it clear? mix the newer with used the and help a currently converting newer that Does of It equipment underutilized clear? but

Brian Chin

Yes.

way right is Mark, characterize the margin upward, -- -- Is but guide your is somewhat as, that directional X memory just characterize I fiscal as it? Maybe prices way expectations think to way to the and my maybe the is that right to quickly of this improved to XQ benign. fiscal gross characterize for kind follow-up really -- right margins gross the then, -- directionally. the last

Mark Murphy

Yes.

market been there up, price first. contribute meet think some as going deals the and even a much? Prices will here, the go it And But a to quarter will not where want much improving is, price half, into a bit is quarter, is the we'll clearly definitively first year. to trajectory. little maybe -- as market We the relative It's for to it been then about, and think take of see the which to I going We but over upward recognizing market it's transitioning going second X fourth. are need we there to have be to muted that stronger believe quarter. the prices from in up done, have talked that we second the They're levels how time. that are back we the down up. going improvement maybe

and of on we the in half, profitability that think course, the So have favorable strengthened cash will, and gross business the and of it effect the margin flows. second a

Operator

comes the And of Company. from question our from Quinn next line Bolton Needham &

Quinn Bolton

I the you in follow What or nodes. in net wanted wafer mean starts of HBM to demand just the that? improving question does topic more role on play the up reduction advanced reallocate some as are in you today nodes assuming in in advanced of XX% demand at more sort utilized part improvement that Or that most you of these gets in factoring that that's demand? as underutilized constant are of equation? I

Manish Bhatia

DRAM DRAM terms bit in said growth, next there NAND be growth in of and and with that CAGR. we've talked NAND being than being higher to the expect that around growth that year robust we've CAGR we mean before certainly, about do I long-term bit long-term

value of even for newer think part part maybe the solutions growing of bigger also what's that higher our certainly that's But So important the demand a is growth. that is as plans. I

of is middle multiple different HBMXE. transitions, it's LPX and to the DX, So whether the LPX, industry DX in X to HBMX to

newer on the those of or only nodes. products efficiently most All produced edge are leading produced

node, -- performance. example, us, great in rest well ahead of great power of the X-beta, for for industry, the leadership strong So ahead

in have X. HBMXE, it So eventually, it DX. in we'll LPX. we've it in got it got We've We've in and graphic got

from products also go performance ONFI with higher certainly, going the demand I well XXX-layer, in leading-edge our -- the our the about in we're that fastest product the as launched our nodes. And more some think But on not areas. introduction UFS terms our and driven on quality shipping for customer. definitely demand we will best through time, our the power great -- SSD year achieve that as, OEM assumption just are think, will as performance and of mix being we've that we're examples inventories areas center history it's demand to data in it's shows technologies. an normalize many if performance, to that specs lower return industry's on for by customers as node have mean, as higher So -- higher the other I of volume I in in to is have high-value there the it a that produced similar towards history NAND a with the seeing our normalized the

Mark Murphy

products, year. want I downturn lasted Maybe, advance, continue to we just one to those a do working -- finding serve have legacy the -- add, But been the Quinn, the for is, customers has we're as are is capital-efficient in said, HBM over to for good latest equipment best And so product and from could performance, and if nodes. now over capacity we've the way, need generation taking here our example. most products more the that time, which and it

so our going time. by a effects the pace to we sense sort and of and of be to it inventory we over as we The profitability. driven up of of level And the decisions. a supply profitability of in the constantly of rate industry be -- levels at result, in are the health the as down our make And sort inventories unless we with approach do looking wafer and we're we that going the starts pay-as-you-go end see here and it's what capacity

Quinn Bolton

like 'XX? Because your but from inventory in gave my in can million that charges, million be charges, model that the fiscal us Do underutilization 'XX, cost, coming $XXX review the flows of correctly. at $XXX And estimate going 'XX. over for you then that inventory. early fiscal -- very assume into $X.X underutilization that to are you provide just an I sure have billion, 'XX I -- it. it $XXX Got to hit there's fiscal additional of period a you've want million about detailed feels through follow-up, I've that left thinking charges charges got got fiscal 'XX you year for make

Mark Murphy

Yes.

I'm to I'll So a explain briefly. provide and going -- number because why not

which have period that we include remember idle Let's costs. costs, the

we that various have. call, -- through I So to you go December if costs went back the period

idle costs, things, so back cost front end, other scrap bunch freight, royalties idle a have other and end, We inventory, forth. of whole period and and costs then

call, have we'll that underutilization has the going the impact. I front end high, been period and experienced They've that's the costs. so 'XX on part 'XX. And that underutilization we the severe what in costs. 'XX And in we because idle billion had into which to $X.X been that of and elevated what go charges, pretty So you has always gave period of walk

mentioned, as over we well. But will second charges first to related in of just the bringing or quarter the And quarter in have naturally will quarter capacity -- that, over underutilization, charges related the We charges $XXX another well front have and down idle go wafer in time, the part as increases. third costs idle our those end, to we do we period because the utilization we're as in time, will when down. million

that directly and P&L you're inventories are seeing by we through relative rate And want to through our and costs and I but pass exist, going industry, last rather profitability be those where Again, see seeing charge levels period time. the through decisions and inventory capacity than emphasize to pace the will we're trends in as still so go inventories driven to the now. will then costs they into of positive the

Operator

Thank conclude conference. participation gentlemen, session Thank for and today's you, ladies you. your as This as does in program. question-and-answer the today's well

may You day. disconnect. now Good

Micron Technology (MU) 27 Sep 232023 Q4 Earnings call transcript