REVEALING CONSENSUAL
RELATIONSHIP WITH AN EMPLOYEE.
THE STOCK IS OFF OF THE LOWS OF
THE SESSION.
IT IS A MOVING TARGET RIGHT
NOW.
STILL DOWN.
I WANT TO SHOW YOU A TOTALLY
DIFFERENT SEMICONDUCTOR
COMPANY.
TAKE A LOOK AT THIS CHART.
BOISE, IDAHO-BASED CHIPMAKER
MICRON JUMPING OVER 52 WEEKS
AND GAINS OF 1.5% TODAY
FOLLOWING WAY
BETTER-THAN-EXPECTED EARNINGS
THAT CAME OUT AFTER THE BELL
YESTERDAY.
BUT WHAT HAPPENS WHEN THE
DUELING TARIFFS FROM BOTH THE
TRUMP ADMINISTRATION AND
CONVERSELY THE CHINESE GO INTO
EFFECT ON JULY 6th?
WE ASK THAT BECAUSE MICRON PUTS
U.S.-MANUFACTURED PRODUCTS INTO
CHINESE PRODUCTS WHICH GOING TO
CHINA THEN GET PUT INTO THE
PRODUCTS AND COME BACK TO THE
U.S. FOR SALE HERE.
JOINING ME TO FIND OUT IN A FOX
BUSINESS EXCLUSIVE, MICRON CEO
SANJAY MEHROTRA.
WONDERFUL TO HAVE YOU ON THE
SHOW AGAIN.
MICRON IS ON FIRE.
LET'S START WITH THE GOOD
STUFF, I'M ALWAYS ACCUSED OF
BEING CHICKEN LITTLE AND GOING
FOR THE BAD STUFF.
GOOD STUFF RIGHT NOW.
WHAT IS IT YOU'VE DONE, I'M
SAYING YOU, IT'S BEEN A
VOLATILE COMPANY, SINCE YOU
ARRIVED TWO YEARS AGO AFTER THE
COMPANY BOUGHT YOUR SanDISK
COMPANY THAT YOU CO-FOUNDED,
THIS STOCK HAS BEEN
UNBELIEVABLY STRONG.
WHAT DID YOU CHANGE WHEN YOU
GOT THERE?
>> SO, LIZ, FIRST OF ALL, GREAT
TO BE ON YOUR SHOW HERE.
AND I'VE BEEN WITH MICRON
SLIGHTLY OVER ONE YEAR.
IT'S A GREAT TEAM.
TREMENDOUS TECHNOLOGY THAT THE
COMPANY HAS BUILT OVER THE
COURSE OF LAST 40 YEARS AND
MICRON TO THE NEXT LEVEL IN
TERMS OF THE MARKETS TODAY THAT
ARE TOTALLY DATA DRIVEN REALLY
NEED MICRON'S MEMORY AND DATA
AND FLASH SOLUTIONS AND WE AT
MICRON ARE FOCUSED ON COST
COMPETITIVENESS AND BUILDING A
PORTFOLIO OF HIGH-VALUE
SOLUTIONS WHICH IS REFLECTED IN
THE RECORD WE DELIVERED IN THE
THIRD QUARTER AND THE GREAT
GUIDANCE FOR THE FOURTH QUARTER
AS WELL.
WE ARE EXTREMELY FOCUSED ON
LEVERAGING TECHNOLOGY AND
DELIVERING EXECUTION.
LIZ: WHEN YOU TALK ABOUT COST
COMPETITIVENESS, I GET NERVOUS,
I WANT TO HEAR ABOUT THE
ORGANIC GROWTH YOU SEE GOING
FORWARD.
WHEN I SAY ORGANIC, YOU GUYS
BEING SMART AND CREATING
PRODUCTS AND DOING EXTREMELY
WELL VERSUS TRIM HERE AND
THERE.
>> WE GREW OUR BUSINESS IN THE
THIRD QUARTER, 40% IN REVENUE
ON A YEAR-OVER-YEAR BASIS.
WE HAVE GREAT CONFIDENCE IN THE
FUTURE OF THE COMPANY AND THE
MARKETS AND OUR CAPABILITIES
THAT IN THE THIRD QUARTER WE
ALSO ANNOUNCED A $10 BILLION
SHARE BUYBACK PROGRAM WHICH
WILL BEGIN IN FISCAL YEAR 19
WHICH STARTS IN SEPTEMBER.
IN TERMS OF OUR MARKETS, LOOK
AT DATA CENTER MARKET, THAT
NEEDS MORE MEMORY, MORE FLASH
IN ORDER TO ENABLE, WE ARE DATA
ANALYTICS AND DATA DRIVEN
SERVICE, THAT IS FAST GROWING
FOR US AND SMARTPHONE WITH
FEATURES LIKE FACIAL
RECOGNITION, MULTIPLE CAMERAS,
THEY DRIVE MORE NEED FOR MORE
DATA AND FLASH STORAGE.
WE'RE FOCUSED ON BRINGING
SOLUTIONS TO OUR CUSTOMERS THAT
THEY WANT, ENGAGE WITH THEM IN
FINDING THE ROAD MAP FOR THE
FUTURE, AND THE COMPANY IS
EXECUTING WELL.
LIZ: IT'S SO OBVIOUS, AND YOU
CORRECTED ME RIGHTLY SO, YOU'VE
ONLY BEEN THERE A LITTLE OVER A
YEAR WHICH COINCIDES WITH
UNBELIEVABLE MOVE IN THE STOCK,
SANJAY.
PROPS TO YOUR AND YOUR TEAM.
I'M NOT ASKING TO YOU COMMENT
ON THE SPECIFICS OF THE INTEL
SITUATION.
YOU JUST SAID YOUR SERVER
BUSINESS IS DOING GANG BUSTERS.
SO WAS INTEL'S.
THE PREVIOUS CEO GOT THAT GOING
AND CAME IN A SHORT TIME, $10
BILLION BUSINESS FOR INTEL.
MAYBE THIS DISTRACTION FOR
INTEL GIVE YOU GUYS A LEG UP?
>> WE HAVE HAD GREAT
RELATIONSHIP WITH INTEL OVER
THE COURSE OF LAST TEN YEARS,
INTEL'S RELATIONSHIP IS
MULTIFACETED.
WE ARE A SUPPLIER TO THEM,
ECOSYSTEM PLAYER IN TERMS OF
DRIVING DEMAND AND DESIGNS FOR
MEMORY AS WELL AS MORE STORAGE.
YESTERDAY NOW WE TALKED ABOUT
WE HAVE BEEN ENGAGED IN
DISCUSSIONS WITH THEM OVER THE
FUTURE 3-D CROSS POINT.
A UNIQUE TECHNOLOGY THAT LIES
BETWEEN THEM AND ENGAGE WITH
THEM IN TERMS OF FUTURE
COLLABORATION TERMS AND WE WANT
TO MAKE SURE THAT FOR MICRON WE
DRIVE STRONG AND WE MENTIONED
THE EARNINGS CALL THAT
BASICALLY STAY TUNED AS YOU OUR
DISCUSSIONS PROGRESS AS
APPROPRIATE WE LOVE DATA
INVESTORS.
WE CONTINUE TO LOOK FORWARD TO
WORK WITH THE TEAM THERE.
LIZ: I HAVE TO ASK YOU IF YOU
MODELED FOR THE CLOUD ON THE
HORIZON AND THAT IS JULY 6,
WHEN THE TRADE TARIFFS KICK IN.
CHINESE PRODUCTS HERE WILL BE
TAXED AND THEY ARE GOING TO DO
RETALIATORY TARIFFS ON U.S.
PRODUCTS GOING.
IN HOW DO YOU SEE THAT
AFFECTING YOUR COMPANY, AND
HAVE YOU APPLIED FOR A WAIVER
TO BE EXEMPT FROM THE CHINESE
TARIFFS?
>> LIZ, WHAT I'LL TELL YOU IS
THAT THE $50 BILLION PART OF
THE TARIFFS, SPECIFIC LINE
ITEMS HAVE BEEN SPELLED OUT,
AND AS WE UNDERSTAND IT, WE DO
NOT SEE ANY IMPACT.
BASICALLY, MINIMAL IMPACT OF
THAT TO OUR BUSINESS.
THE SITUATION IS FLUID.
WE CONTINUE TO MONITOR IT IN
TERMS OF IN AN ONGOING
BUSINESS, WITHOUT FURTHER
SPECIFICS, I CAN'T REALLY
COMMENT, BUT THE SPECIFICS ON
THE $50 BILLION LINE ITEM
TARIFFS THEY THINK YOU'RE
REFERRING TO, BASICALLY THEY
HAD MINIMAL IMPACT ON THE
REVENUE.
LIZ: IF IT RAMPS UP TO THE 200
BILLION THAT THE PRESIDENT
THREATENED AND THEN CHINA SAYS
FINE, WE'LL MATCH THAT, THEN IT
WILL START TO ANTICIPATE
AFFECTING YOU GUYS AT ALL?
I CAN'T IMAGINE IT COULDN'T.
AND AGAIN, HAVE YOU APPLIED FOR
A WAIVER?
>> SO LIZ, WE REALLY HAVE TO
WAIT AND SEE WHAT THE SPECIFICS
TURN OUT UNTIL WE SEE THE
SPECIFICS CAN'T REALLY
SPECULATE.
BUT WE ARE OPTIMISTIC THAT THE
NEGOTIATIONS GOING ON BETWEEN
THE TWO COUNTRIES WILL
ULTIMATELY BE RESOLVED IN A
POSITIVE WAY FOR ALL PARTIES
BECAUSE THERE IS NO QUESTION
THAT GLOBAL ECONOMIES THRIVE ON
THE THREE BASIC PRINCIPLES OF
FRICTIONLESS TRADE, FREE
COMPETITION AND RESPECT FOR
INTELLECTUAL PROPERTY.
LIZ: SANJAY, GREAT TO SEE A
COMPANY AND YOU A CALBEAR