Cuts Q4 outlook again on macro/supply chain factors: Rev may come in at or below the low end of prior guidance; Expect a challenging market environment in Q4 and Q1 FY23; Expect FY23 Capex to be down meaningfully y/y - filing
Tuesday, August 9, 2022 6:09:41 AMEST
- Guides Q1 FCF 'negative'
• Recently, due to macroeconomic factors and supply chain constraints, we have seen a broadening of customer inventory adjustments. As a result, our expectations for CY22 industry bit demand growth for DRAM and NAND have declined since our June 30, 2022 earnings call, and we expect a challenging market environment in FQ4 22 and FQ1 23.
• FQ4 revenue may come in at or below the low end of the revenue guidance range provided in our June 30 earnings call.
• In FQ1, bit shipments are now expected to decline sequentially, and we expect significantsequential declines in revenue and margins. We expect free cash flow to be negative in FQ1.
• To address the near-term environment, today we are announcing new FY23 wafer fab equipment (WFE) capex reductions adding to the WFE capex reductions discussed in our June 30 earnings call, and now expect FY23 total capex to be down meaningfully versus FY22.
***Note June 30th: Reports Q3 $2.59 v $2.44e, Rev $8.64B v $8.66Be; Guides Q4 lower, citing recent weaker demand
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• Recently, due to macroeconomic factors and supply chain constraints, we have seen a broadening of customer inventory adjustments. As a result, our expectations for CY22 industry bit demand growth for DRAM and NAND have declined since our June 30, 2022 earnings call, and we expect a challenging market environment in FQ4 22 and FQ1 23.
• FQ4 revenue may come in at or below the low end of the revenue guidance range provided in our June 30 earnings call.
• In FQ1, bit shipments are now expected to decline sequentially, and we expect significantsequential declines in revenue and margins. We expect free cash flow to be negative in FQ1.
• To address the near-term environment, today we are announcing new FY23 wafer fab equipment (WFE) capex reductions adding to the WFE capex reductions discussed in our June 30 earnings call, and now expect FY23 total capex to be down meaningfully versus FY22.
***Note June 30th: Reports Q3 $2.59 v $2.44e, Rev $8.64B v $8.66Be; Guides Q4 lower, citing recent weaker demand