MICRON TECHNOLOGY, INC. | ||
(Exact name of registrant as specified in its charter) |
Delaware | 1-10658 | 75-1618004 | ||||||||||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
8000 South Federal Way | ||
Boise, Idaho 83716-9632 | ||
(Address of principal executive offices and Zip Code) |
(208) 368-4000 | ||
(Registrant’s telephone number, including area code) |
Title of each class | Trading symbol | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $0.10 per share | MU | Nasdaq Global Select Market |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits. | ||||
(d) Exhibits. |
Exhibit No. | Description | ||||||||||
99.1 | |||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
MICRON TECHNOLOGY, INC. | |||||||||||
Date: | June 30, 2022 | By: | /s/ Mark Murphy | ||||||||
Name: | Mark Murphy | ||||||||||
Title: | Executive Vice President and Chief Financial Officer |
Contacts: | Farhan Ahmad | Erica Rodriguez Pompen | ||||||
Investor Relations | Media Relations | |||||||
farhanahmad@micron.com | epompen@micron.com | |||||||
(408) 834-1927 | (408) 834-1873 |
Quarterly Financial Results | |||||||||||||||||||||||
(in millions, except per share amounts) | GAAP(1) |
Non-GAAP(2) |
|||||||||||||||||||||
FQ3-22 | FQ2-22 | FQ3-21 | FQ3-22 | FQ2-22 | FQ3-21 | ||||||||||||||||||
Revenue | $ | 8,642 | $ | 7,786 | $ | 7,422 | $ | 8,642 | $ | 7,786 | $ | 7,422 | |||||||||||
Gross margin | 4,035 | 3,676 | 3,126 | 4,097 | 3,724 | 3,185 | |||||||||||||||||
percent of revenue | 46.7 | % | 47.2 | % | 42.1 | % | 47.4 | % | 47.8 | % | 42.9 | % | |||||||||||
Operating expenses | 1,031 | 1,130 | 1,327 | 953 | 974 | 821 | |||||||||||||||||
Operating income | 3,004 | 2,546 | 1,799 | 3,144 | 2,750 | 2,364 | |||||||||||||||||
percent of revenue | 34.8 | % | 32.7 | % | 24.2 | % | 36.4 | % | 35.3 | % | 31.9 | % | |||||||||||
Net income | 2,626 | 2,263 | 1,735 | 2,939 | 2,444 | 2,173 | |||||||||||||||||
Diluted earnings per share | 2.34 | 2.00 | 1.52 | 2.59 | 2.14 | 1.88 |
FQ4-22 | GAAP(1) Outlook |
Non-GAAP(2) Outlook |
||||||
Revenue |
$7.2 billion ± $400 million | $7.2 billion ± $400 million | ||||||
Gross margin |
41.5% ± 1.5% | 42.5% ± 1.5% | ||||||
Operating expenses |
$1.13 billion ± $25 million | $1.05 billion ± $25 million | ||||||
Diluted earnings per share |
$1.52 ± $0.20 | $1.63 ± $0.20 |
3rd Qtr. | 2nd Qtr. | 3rd Qtr. | Nine months ended | ||||||||||||||
June 2, 2022 |
March 3, 2022 |
June 3, 2021 |
June 2, 2022 |
June 3, 2021 |
|||||||||||||
Revenue | $ | 8,642 | $ | 7,786 | $ | 7,422 | $ | 24,115 | $ | 19,431 | |||||||
Cost of goods sold | 4,607 | 4,110 | 4,296 | 12,839 | 12,920 | ||||||||||||
Gross margin | 4,035 | 3,676 | 3,126 | 11,276 | 6,511 | ||||||||||||
Research and development | 773 | 792 | 670 | 2,277 | 1,958 | ||||||||||||
Selling, general, and administrative | 264 | 263 | 230 | 786 | 658 | ||||||||||||
Restructure and asset impairments | — | 5 | 453 | 43 | 466 | ||||||||||||
Other operating (income) expense, net | (6) | 70 | (26) | (11) | 101 | ||||||||||||
Operating income | 3,004 | 2,546 | 1,799 | 8,181 | 3,328 | ||||||||||||
Interest income | 20 | 12 | 8 | 42 | 28 | ||||||||||||
Interest expense | (44) | (55) | (46) | (144) | (136) | ||||||||||||
Other non-operating income (expense), net | 8 | 6 | 45 | (61) | 62 | ||||||||||||
2,988 | 2,509 | 1,806 | 8,018 | 3,282 | |||||||||||||
Income tax (provision) benefit | (358) | (255) | (65) | (832) | (164) | ||||||||||||
Equity in net income (loss) of equity method investees | (4) | 9 | (6) | 9 | 23 | ||||||||||||
Net income | $ | 2,626 | $ | 2,263 | $ | 1,735 | $ | 7,195 | $ | 3,141 | |||||||
Earnings per share | |||||||||||||||||
Basic | $ | 2.36 | $ | 2.02 | $ | 1.55 | $ | 6.44 | $ | 2.81 | |||||||
Diluted | 2.34 | 2.00 | 1.52 | 6.38 | 2.75 | ||||||||||||
Number of shares used in per share calculations | |||||||||||||||||
Basic | 1,112 | 1,119 | 1,121 | 1,117 | 1,119 | ||||||||||||
Diluted | 1,121 | 1,130 | 1,145 | 1,127 | 1,141 |
As of | June 2, 2022 |
March 3, 2022 |
September 2, 2021 |
||||||||
Assets | |||||||||||
Cash and equivalents | $ | 9,157 | $ | 9,116 | $ | 7,763 | |||||
Short-term investments | 1,070 | 1,006 | 870 | ||||||||
Receivables | 6,229 | 5,384 | 5,311 | ||||||||
Inventories | 5,629 | 5,383 | 4,487 | ||||||||
Assets held for sale | 15 | 13 | 974 | ||||||||
Other current assets | 608 | 600 | 502 | ||||||||
Total current assets | 22,708 | 21,502 | 19,907 | ||||||||
Long-term marketable investments | 1,646 | 1,717 | 1,765 | ||||||||
Property, plant, and equipment | 36,665 | 36,171 | 33,213 | ||||||||
Operating lease right-of-use assets | 690 | 587 | 551 | ||||||||
Intangible assets | 415 | 414 | 349 | ||||||||
Deferred tax assets | 682 | 762 | 782 | ||||||||
Goodwill | 1,228 | 1,228 | 1,228 | ||||||||
Other noncurrent assets | 1,262 | 1,315 | 1,054 | ||||||||
Total assets | $ | 65,296 | $ | 63,696 | $ | 58,849 | |||||
Liabilities and equity | |||||||||||
Accounts payable and accrued expenses | $ | 5,788 | $ | 5,650 | $ | 5,325 | |||||
Current debt | 107 | 123 | 155 | ||||||||
Other current liabilities | 1,114 | 1,145 | 944 | ||||||||
Total current liabilities | 7,009 | 6,918 | 6,424 | ||||||||
Long-term debt | 6,856 | 6,953 | 6,621 | ||||||||
Noncurrent operating lease liabilities | 629 | 535 | 504 | ||||||||
Noncurrent unearned government incentives | 663 | 704 | 808 | ||||||||
Other noncurrent liabilities | 858 | 741 | 559 | ||||||||
Total liabilities | 16,015 | 15,851 | 14,916 | ||||||||
Commitments and contingencies | |||||||||||
Shareholders’ equity | |||||||||||
Common stock | 122 | 122 | 122 | ||||||||
Additional capital | 9,950 | 9,816 | 9,453 | ||||||||
Retained earnings | 45,916 | 43,407 | 39,051 | ||||||||
Treasury stock | (6,343) | (5,362) | (4,695) | ||||||||
Accumulated other comprehensive income (loss) | (364) | (138) | 2 | ||||||||
Total equity | 49,281 | 47,845 | 43,933 | ||||||||
Total liabilities and equity | $ | 65,296 | $ | 63,696 | $ | 58,849 | |||||
Nine months ended | June 2, 2022 |
June 3, 2021 |
||||||
Cash flows from operating activities | ||||||||
Net income | $ | 7,195 | $ | 3,141 | ||||
Adjustments to reconcile net income to net cash provided by operating activities |
||||||||
Depreciation expense and amortization of intangible assets | 5,234 | 4,593 | ||||||
Stock-based compensation | 378 | 285 | ||||||
(Gain) loss on debt repurchases and conversions | 83 | 1 | ||||||
Restructure and asset impairments | 43 | 446 | ||||||
Change in operating assets and liabilities |
||||||||
Receivables | (906) | (340) | ||||||
Inventories | (1,146) | 814 | ||||||
Accounts payable and accrued expenses | 382 | (309) | ||||||
Other | 141 | (47) | ||||||
Net cash provided by operating activities | 11,404 | 8,584 | ||||||
Cash flows from investing activities | ||||||||
Expenditures for property, plant, and equipment | (8,454) | (8,015) | ||||||
Purchases of available-for-sale securities | (1,359) | (1,919) | ||||||
Proceeds from sale of Lehi, Utah fab | 888 | — | ||||||
Proceeds from maturities of available-for-sale securities | 964 | 1,024 | ||||||
Proceeds from sales of available-for-sale securities | 258 | 473 | ||||||
Proceeds from government incentives | 104 | 335 | ||||||
Other | (162) | 47 | ||||||
Net cash provided by (used for) investing activities | (7,761) | (8,055) | ||||||
Cash flows from financing activities | ||||||||
Repayments of debt | (2,008) | (1,344) | ||||||
Repurchases of common stock - repurchase program | (1,648) | (150) | ||||||
Payments of dividends to shareholders | (335) | — | ||||||
Payments on equipment purchase contracts | (132) | (139) | ||||||
Repurchases of common stock - withholdings on employee equity awards | (116) | (84) | ||||||
Proceeds from issuance of debt | 2,000 | 1,188 | ||||||
Other | 99 | 92 | ||||||
Net cash provided by (used for) financing activities | (2,140) | (437) | ||||||
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash |
(71) | 44 | ||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 1,432 | 136 | ||||||
Cash, cash equivalents, and restricted cash at beginning of period | 7,829 | 7,690 | ||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 9,261 | $ | 7,826 |
3rd Qtr. | 2nd Qtr. | 3rd Qtr. | |||||||||
June 2, 2022 |
March 3, 2022 |
June 3, 2021 |
|||||||||
GAAP gross margin | $ | 4,035 | $ | 3,676 | $ | 3,126 | |||||
Stock-based compensation | 57 | 44 | 45 | ||||||||
Other | 5 | 4 | 14 | ||||||||
Non-GAAP gross margin | $ | 4,097 | $ | 3,724 | $ | 3,185 | |||||
GAAP operating expenses | $ | 1,031 | $ | 1,130 | $ | 1,327 | |||||
Stock-based compensation | (78) | (75) | (53) | ||||||||
Restructure and asset impairments | — | (5) | (453) | ||||||||
Other | — | (76) | — | ||||||||
Non-GAAP operating expenses | $ | 953 | $ | 974 | $ | 821 | |||||
GAAP operating income | $ | 3,004 | $ | 2,546 | $ | 1,799 | |||||
Stock-based compensation | 135 | 119 | 98 | ||||||||
Restructure and asset impairments | — | 5 | 453 | ||||||||
Other | 5 | 80 | 14 | ||||||||
Non-GAAP operating income | $ | 3,144 | $ | 2,750 | $ | 2,364 | |||||
GAAP net income |
$ | 2,626 | $ | 2,263 | $ | 1,735 | |||||
Stock-based compensation | 135 | 119 | 98 | ||||||||
Restructure and asset impairments | — | 5 | 453 | ||||||||
Amortization of debt discount and other costs | 8 | 8 | 7 | ||||||||
Other | 5 | 80 | 15 | ||||||||
Impact of Idaho income tax reform | 189 | — | — | ||||||||
Estimated tax effects of above and other tax adjustments |
(24) | (31) | (135) | ||||||||
Non-GAAP net income | $ | 2,939 | $ | 2,444 | $ | 2,173 | |||||
GAAP weighted-average common shares outstanding - Diluted |
1,121 | 1,130 | 1,145 | ||||||||
Adjustment for stock-based compensation |
15 | 13 | 9 | ||||||||
Non-GAAP weighted-average common shares outstanding - Diluted |
1,136 | 1,143 | 1,154 | ||||||||
GAAP diluted earnings per share |
$ | 2.34 | $ | 2.00 | $ | 1.52 | |||||
Effects of the above adjustments |
0.25 | 0.14 | 0.36 | ||||||||
Non-GAAP diluted earnings per share |
$ | 2.59 | $ | 2.14 | $ | 1.88 |
3rd Qtr. | 2nd Qtr. | 3rd Qtr. | |||||||||
June 2, 2022 |
March 3, 2022 |
June 3, 2021 |
|||||||||
GAAP net cash provided by operating activities |
$ | 3,838 | $ | 3,628 | $ | 3,560 | |||||
Expenditures for property, plant, and equipment |
(2,578) | (2,611) | (2,259) | ||||||||
Proceeds from sales of property, plant, and equipment |
39 | 27 | 74 | ||||||||
Payments on equipment purchase contracts |
(27) | (27) | (16) | ||||||||
Amounts funded by partners |
38 | 11 | 159 | ||||||||
Investments in capital expenditures, net | (2,528) | (2,600) | (2,042) | ||||||||
Adjusted free cash flow |
$ | 1,310 | $ | 1,028 | $ | 1,518 |
As of | June 2, 2022 |
March 3, 2022 |
September 2, 2021 |
||||||||
Cash and short-term investments |
$ | 10,227 | $ | 10,122 | $ | 8,633 | |||||
Current and noncurrent restricted cash |
104 | 108 | 66 | ||||||||
Long-term marketable investments |
1,646 | 1,717 | 1,765 | ||||||||
Current and long-term debt |
(6,963) | (7,076) | (6,776) | ||||||||
Net cash |
$ | 5,014 | $ | 4,871 | $ | 3,688 |
FQ4-22 | GAAP Outlook | Adjustments | Non-GAAP Outlook | ||||||||||||||||||||
Revenue |
$7.2 billion ± $400 million | — | $7.2 billion ± $400 million | ||||||||||||||||||||
Gross margin |
41.5% ± 1.5% | 1% | A | 42.5% ± 1.5% | |||||||||||||||||||
Operating expenses |
$1.13 billion ± $25 million | $83 million | B | $1.05 billion ± $25 million | |||||||||||||||||||
Diluted earnings per share(1) |
$1.52 ± $0.20 | $0.11 | A, B, C | $1.63 ± $0.20 |
Non-GAAP Adjustments
(in millions)
|
|||||||||||||||||||||||
A |
Stock-based compensation – cost of goods sold |
$ | 45 | ||||||||||||||||||||
A |
Other – cost of goods sold |
4 | |||||||||||||||||||||
B |
Stock-based compensation – research and development |
48 | |||||||||||||||||||||
B |
Stock-based compensation – sales, general, and administrative |
35 | |||||||||||||||||||||
C |
Tax effects of the above items and other tax adjustments | (9) | |||||||||||||||||||||
$ | 123 |