Crucial 2015 Annual Report Download - page 32

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30
SBU sales of NAND Flash products to trade customers for 2015 increased 7% as compared to 2014 primarily due to
increases in gigabits sold partially offset by declines in average selling prices. Increases in gigabits sold for 2015 as compared
to 2014 were primarily due to higher manufacturing output. SBU operating margin for 2015 declined from 2014 as decreases
in average selling prices outpaced manufacturing cost reductions and R&D costs increased in connection with increased
spending on controllers, firmware, and engineering for SSDs and managed NAND Flash products.
SBU sales for 2014 increased 23% from 2013 primarily due to increases in gigabits sold partially offset by declines in
average selling prices. Increases in gigabits sold for 2014 were primarily due to the transition in 2014 of production at one of
our wafer fabrication facilities in Singapore from DRAM to NAND Flash and improvements in product and process
technologies. SBU sales of NAND Flash products to trade customers for 2014 increased 26% as compared to 2013 primarily
due to an increase in gigabits sold partially offset by declines in average selling prices. SBU operating income for 2014
improved from 2013 primarily due to higher gigabit sales volumes as manufacturing cost reductions were essentially offset by
declines in average selling prices.
EBU
For the year ended 2015 2014 2013
Net sales $ 1,999 $ 1,774 $ 1,275
Operating income 435 331 227
In 2015 and 2014, EBU sales were comprised of DRAM, NAND Flash, and NOR Flash in decreasing order of revenue.
EBU sales for 2015 increased 13% as compared to 2014 primarily due to higher sales volumes of DRAM and NAND Flash
products as a result of increases in demand. EBU operating income for 2015 improved as compared to 2014 primarily due to
the higher sales volumes.
EBU sales for 2014 increased 39% as compared to 2013 primarily due to increased sales volumes of DRAM and NAND
Flash products partially offset by declines in average selling prices. EBU operating income for 2014 improved as compared to
2013 primarily due to higher margins on sales of DRAM and NAND Flash products as a result of the increase in sales and cost
reductions.
Operating Results by Product
Net Sales by Product
For the year ended 2015 2014 2013
DRAM $10,339 64% $11,164 68% $ 4,361 48%
Non-Volatile Memory 5,274 33% 4,468 27% 3,589 40%
Other 579 4% 726 4% 1,123 12%
$16,192 $16,358 $ 9,073
Percentages reflect rounding and may not total 100%.
Non-Volatile Memory includes NAND Flash and 3D XPoint memory. Through 2015, substantially all of our Non-Volatile
Memory sales were from NAND Flash products. Sales of NOR Flash products are included in Other. Information regarding
our MCP products, which combine both NAND Flash and DRAM components, is reported within Non-Volatile Memory.
DRAM
For the year ended 2015 2014
(percentage change from prior period)
Net sales (7)% 156 %
Average selling prices per gigabit (11)% 6 %
Gigabits sold 4 % 142 %
Cost per gigabit (12)% (20)%