Micron Technology Inc. cut back on spending plans for fiscal 2019 as it expects a quarterly decline in third-quarter revenues, despite its projection of improvement in memory chip demand.
The company expects non-GAAP revenue of $4.8 billion, plus or minus $200 million, in its third fiscal quarter. The guidance represents a decline from $5.84 billion reported in the second fiscal quarter ended Feb. 28 but is in line with the S&P Global Market Intelligence consensus estimate of $4.83 billion for the period.
Micron also expects to record non-GAAP operating expenses of $785 million, plus or minus $25 million, in its third fiscal quarter, as well as EPS of 85 cents, plus or minus 10 cents. Additionally, the company lowered its capital expenditure projections for the fiscal year to about $9 billion from an earlier guidance range of between $9 billion and $9.5 billion.
Micron booked non-GAAP attributable net income of $1.97 billion in the second fiscal quarter, down from $3.51 billion in the first quarter ended Nov. 29, 2018, and from $3.50 billion in the year-ago period. The sales volume of dynamic random-access memory, or DRAM, chips decreased by a low double-digit percent range on a quarterly basis, while that of NAND flash chips rose by an upper single-digit percent range over the period.
The company said it expects DRAM bit shipments to begin increasing in the third fiscal quarter, while it is targeting NAND bit shipments to grow close to the industry average.