Micron Technology (MU)
Q4 2011 Earnings Call
September 29, 2011 4:30 pm ET
Kipp A. Bedard - Vice President of Investor Relations
Ronald C. Foster - Chief Financial Officer, Principal Accounting Officer and Vice President of Finance
D. Mark Durcan - President and Chief Operating Officer
Steven R. Appleton - Chairman and Chief Executive Officer
Mark W. Adams - Vice President of Worldwide Sales
John Pitzer - Crédit Suisse AG, Research Division
Alex Gauna - JMP Securities LLC, Research Division
Glen Yeung - Citigroup Inc, Research Division
Harlan Sur - JP Morgan Chase & Co, Research Division
William Dezellem - Tieton Capital Management
Christopher J. Muse - Barclays Capital, Research Division
David M. Wong - Wells Fargo Securities, LLC, Research Division
James Schneider - Goldman Sachs Group Inc., Research Division
Uche X. Orji - UBS Investment Bank, Research Division
Betsy Van Hees - Wedbush Securities Inc., Research Division
Ryan Goodman - CLSA Asia-Pacific Markets, Research Division
Hans C. Mosesmann - Raymond James & Associates, Inc., Research Division
Shawn R. Webster - Macquarie Research
Bobby Gujavarty - Deutsche Bank AG, Research Division
Unknown Analyst -
Krishna Shankar - ThinkEquity LLC, Research Division
Previous Statements by MU
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Good afternoon my name is Yuwi, and I will be your conference facilitator today. At this time, I'd like to welcome everyone to Micron Technology's Fourth Quarter and Fiscal Year End 2011 Financial Release Conference Call. [Operator Instructions] And now it's my pleasure to turn the conference over to your host, Kipp Bedard. Sir, you may begin your conference.
Kipp A. Bedard
Thank you very much, and welcome to Micron Technology's Fourth Quarter and Fiscal Year End 2011 Financial Release Conference Call. On the call today is Steve Appleton, Chairman and CEO; Mark Durcan, President and Chief Operating Officer; Ron Foster, Chief Financial Officer and Vice President Finance; and of course, Mark Adams, Vice President of Worldwide Sales.
This conference call, including audio and slides, is also available on Micron's website at micron.com. If you have not had an opportunity to review the third (sic) [fourth] quarter 2011 financial press release, it is available on our website at micron.com. Our call will be approximately 60 minutes in length. There will be an audio replay of this call, accessed by dialing (404) 537-3406, with the confirmation code of 11557620. This replay will run through Thursday, October 6, 2011, at 5:30 p.m. Mountain Time. A webcast replay will be available on the company's website until September 2012. We encourage you to monitor our website, again at micron.com, throughout the quarter for the most current information on the company, including information on the various financial conferences that we will be attending.
Please note the following Safe Harbor statement. During the course of this meeting, we may make projections or other forward-looking statements regarding future events or 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 the 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 on the Investor Relations section of Micron's website. 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.
And now I'd like to turn the call over to Mr. Steve Appleton. Steve?
Steven R. Appleton
Thank you, Kipp. I want to make a few comments, and then Ron Foster will make a few comments. And as Kipp said, we'll open it up for questions. It may seem a lot, but I thought I'd just do a quick refresh where we started the last quarter, which was we're all concerned about Japan. At the time we forecasted that we didn't think there would be any disruptions of significance in our supply chain, and in fact that turns out to be the case. And then it all went pretty smoothly, just as a point worth noting.
On the operations and technology front, we feel like we had a pretty good quarter. As you can see from some of the data we posted from our bit growth and our cost reductions. On the execution side, we had a good operational quarter.
In conjunction with that, our 20-nanometer NAND is ramping, continues to go well. But obviously, we're continuously adjusting the mix to take advantage of higher margin opportunities.
IMFS is on track and also continues to perform pretty well. We're on track to reach wafer start capacity sometime in the late fall. And we continue to make investments in R&D as evidenced by our new research facility that will be ready -- it will be ready for tool installs in the beginning of calendar 2012. So I might add that the facility itself will be 40 -- 50-millimeter capable, but obviously we're very focused on 10 millimeter at this time. One other comment on IMFS, I think it's worth noting is that in our Q4, it accounted for about 25% of our trade NAND revenues, so that's obviously going to be pretty significant for us.
On the CapEx front, we came in at about where we thought we would. We were just over $900 million for the quarter and just under $2.9 billion for fiscal 2011. If you recall, we noted that as we're finishing up the payments of all the tools and sold at IMFS, we have a couple of big quarters. In terms of our thoughts around fiscal 2012, we may -- the same with an expectation of just over $2 billion.