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 28, 2023 | 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) |
|||||||||||||||||||||
FQ3-23 | FQ2-23 | FQ3-22 | FQ3-23 | FQ2-23 | FQ3-22 | ||||||||||||||||||
Revenue | $ | 3,752 | $ | 3,693 | $ | 8,642 | $ | 3,752 | $ | 3,693 | $ | 8,642 | |||||||||||
Gross margin | (668) | (1,206) | 4,035 | (603) | (1,161) | 4,097 | |||||||||||||||||
percent of revenue | (17.8 | %) | (32.7 | %) | 46.7 | % | (16.1 | %) | (31.4 | %) | 47.4 | % | |||||||||||
Operating expenses | 1,093 | 1,097 | 1,031 | 866 | 916 | 953 | |||||||||||||||||
Operating income (loss) | (1,761) | (2,303) | 3,004 | (1,469) | (2,077) | 3,144 | |||||||||||||||||
percent of revenue | (46.9 | %) | (62.4 | %) | 34.8 | % | (39.2 | %) | (56.2 | %) | 36.4 | % | |||||||||||
Net income (loss) | (1,896) | (2,312) | 2,626 | (1,565) | (2,081) | 2,939 | |||||||||||||||||
Diluted earnings (loss) per share | (1.73) | (2.12) | 2.34 | (1.43) | (1.91) | 2.59 |
FQ4-23 | GAAP(1) Outlook |
Non-GAAP(2) Outlook |
||||||
Revenue |
$3.90 billion ± $200 million | $3.90 billion ± $200 million | ||||||
Gross margin |
(12.5%) ± 2.5% | (10.5%) ± 2.5% | ||||||
Operating expenses |
$946 million ± $15 million | $845 million ± $15 million | ||||||
Diluted earnings (loss) per share |
($1.34) ± $0.07 | ($1.19) ± $0.07 |
3rd Qtr. | 2nd Qtr. | 3rd Qtr. | Nine months ended | ||||||||||||||
June 1, 2023 |
March 2, 2023 |
June 2, 2022 |
June 1, 2023 |
June 2, 2022 |
|||||||||||||
Revenue | $ | 3,752 | $ | 3,693 | $ | 8,642 | $ | 11,530 | $ | 24,115 | |||||||
Cost of goods sold | 4,420 | 4,899 | 4,607 | 12,511 | 12,839 | ||||||||||||
Gross margin | (668) | (1,206) | 4,035 | (981) | 11,276 | ||||||||||||
Research and development | 758 | 788 | 773 | 2,395 | 2,277 | ||||||||||||
Selling, general, and administrative | 219 | 231 | 264 | 701 | 786 | ||||||||||||
Restructure and asset impairments | 68 | 86 | — | 167 | 43 | ||||||||||||
Other operating (income) expense, net | 48 | (8) | (6) | 29 | (11) | ||||||||||||
Operating income (loss) | (1,761) | (2,303) | 3,004 | (4,273) | 8,181 | ||||||||||||
Interest income | 127 | 119 | 20 | 334 | 42 | ||||||||||||
Interest expense | (119) | (89) | (44) | (259) | (144) | ||||||||||||
Other non-operating income (expense), net | — | 2 | 8 | (2) | (61) | ||||||||||||
(1,753) | (2,271) | 2,988 | (4,200) | 8,018 | |||||||||||||
Income tax (provision) benefit | (139) | (54) | (358) | (201) | (832) | ||||||||||||
Equity in net income (loss) of equity method investees | (4) | 13 | (4) | (2) | 9 | ||||||||||||
Net income (loss) | $ | (1,896) | $ | (2,312) | $ | 2,626 | $ | (4,403) | $ | 7,195 | |||||||
Earnings (loss) per share | |||||||||||||||||
Basic | $ | (1.73) | $ | (2.12) | $ | 2.36 | $ | (4.03) | $ | 6.44 | |||||||
Diluted | (1.73) | (2.12) | 2.34 | (4.03) | 6.38 | ||||||||||||
Number of shares used in per share calculations | |||||||||||||||||
Basic | 1,094 | 1,091 | 1,112 | 1,092 | 1,117 | ||||||||||||
Diluted | 1,094 | 1,091 | 1,121 | 1,092 | 1,127 |
As of | June 1, 2023 |
March 2, 2023 |
September 1, 2022 |
||||||||
Assets | |||||||||||
Cash and equivalents | $ | 9,298 | $ | 9,798 | $ | 8,262 | |||||
Short-term investments | 1,054 | 1,020 | 1,069 | ||||||||
Receivables | 2,429 | 2,278 | 5,130 | ||||||||
Inventories | 8,238 | 8,129 | 6,663 | ||||||||
Other current assets | 715 | 673 | 657 | ||||||||
Total current assets | 21,734 | 21,898 | 21,781 | ||||||||
Long-term marketable investments | 973 | 1,212 | 1,647 | ||||||||
Property, plant, and equipment | 38,727 | 39,085 | 38,549 | ||||||||
Operating lease right-of-use assets | 655 | 673 | 678 | ||||||||
Intangible assets | 410 | 410 | 421 | ||||||||
Deferred tax assets | 708 | 697 | 702 | ||||||||
Goodwill | 1,252 | 1,228 | 1,228 | ||||||||
Other noncurrent assets | 1,221 | 1,317 | 1,277 | ||||||||
Total assets | $ | 65,680 | $ | 66,520 | $ | 66,283 | |||||
Liabilities and equity | |||||||||||
Accounts payable and accrued expenses | $ | 4,177 | $ | 4,310 | $ | 6,090 | |||||
Current debt | 259 | 237 | 103 | ||||||||
Other current liabilities | 668 | 708 | 1,346 | ||||||||
Total current liabilities | 5,104 | 5,255 | 7,539 | ||||||||
Long-term debt | 12,986 | 12,037 | 6,803 | ||||||||
Noncurrent operating lease liabilities | 603 | 610 | 610 | ||||||||
Noncurrent unearned government incentives | 632 | 529 | 589 | ||||||||
Other noncurrent liabilities | 950 | 832 | 835 | ||||||||
Total liabilities | 20,275 | 19,263 | 16,376 | ||||||||
Commitments and contingencies | |||||||||||
Shareholders’ equity | |||||||||||
Common stock | 124 | 123 | 123 | ||||||||
Additional capital | 10,782 | 10,633 | 10,197 | ||||||||
Retained earnings | 42,391 | 44,426 | 47,274 | ||||||||
Treasury stock | (7,552) | (7,552) | (7,127) | ||||||||
Accumulated other comprehensive income (loss) | (340) | (373) | (560) | ||||||||
Total equity | 45,405 | 47,257 | 49,907 | ||||||||
Total liabilities and equity | $ | 65,680 | $ | 66,520 | $ | 66,283 |
Nine months ended | June 1, 2023 |
June 2, 2022 |
||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | (4,403) | $ | 7,195 | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
||||||||
Depreciation expense and amortization of intangible assets | 5,819 | 5,234 | ||||||
Provision to write down inventories to net realizable value | 1,831 | — | ||||||
Stock-based compensation | 448 | 378 | ||||||
(Gain) loss on debt repurchases | — | 83 | ||||||
Change in operating assets and liabilities: |
||||||||
Receivables | 2,728 | (906) | ||||||
Inventories | (3,406) | (1,146) | ||||||
Accounts payable and accrued expenses | (1,764) | 382 | ||||||
Other | 57 | 184 | ||||||
Net cash provided by operating activities | 1,310 | 11,404 | ||||||
Cash flows from investing activities | ||||||||
Expenditures for property, plant, and equipment | (6,215) | (8,454) | ||||||
Purchases of available-for-sale securities | (496) | (1,359) | ||||||
Proceeds from maturities of available-for-sale securities | 1,170 | 964 | ||||||
Proceeds from government incentives | 248 | 104 | ||||||
Proceeds from sales of available-for-sale securities | 22 | 258 | ||||||
Proceeds from sale of Lehi, Utah fab | — | 888 | ||||||
Other | (90) | (162) | ||||||
Net cash provided by (used for) investing activities | (5,361) | (7,761) | ||||||
Cash flows from financing activities | ||||||||
Proceeds from issuance of debt | 6,716 | 2,000 | ||||||
Repayments of debt | (706) | (2,008) | ||||||
Repurchases of common stock - repurchase program | (425) | (1,648) | ||||||
Payments of dividends to shareholders | (378) | (335) | ||||||
Payments on equipment purchase contracts | (112) | (132) | ||||||
Other | — | (17) | ||||||
Net cash provided by (used for) financing activities | 5,095 | (2,140) | ||||||
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash |
(13) | (71) | ||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 1,031 | 1,432 | ||||||
Cash, cash equivalents, and restricted cash at beginning of period | 8,339 | 7,829 | ||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 9,370 | $ | 9,261 |
3rd Qtr. | 2nd Qtr. | 3rd Qtr. | Nine months ended | ||||||||||||||
June 1, 2023 |
March 2, 2023 |
June 2, 2022 |
June 1, 2023 |
June 2, 2022 |
|||||||||||||
Provision to write down inventory to net realizable value | $ | (401) | $ | (1,430) | $ | — | $ | (1,831) | $ | — | |||||||
Lower costs from sale of inventory written down in prior periods | 281 | — | — | 281 | — | ||||||||||||
$ | (120) | $ | (1,430) | $ | — | $ | (1,550) | $ | — |
3rd Qtr. | 2nd Qtr. | 3rd Qtr. | |||||||||
June 1, 2023 |
March 2, 2023 |
June 2, 2022 |
|||||||||
GAAP gross margin | $ | (668) | $ | (1,206) | $ | 4,035 | |||||
Stock-based compensation | 60 | 41 | 57 | ||||||||
Other | 5 | 4 | 5 | ||||||||
Non-GAAP gross margin | $ | (603) | $ | (1,161) | $ | 4,097 | |||||
GAAP operating expenses | $ | 1,093 | $ | 1,097 | $ | 1,031 | |||||
Stock-based compensation | (91) | (95) | (78) | ||||||||
Restructure and asset impairments | (68) | (86) | — | ||||||||
Litigation contingency accrual | (68) | — | — | ||||||||
Non-GAAP operating expenses | $ | 866 | $ | 916 | $ | 953 | |||||
GAAP operating income (loss) | $ | (1,761) | $ | (2,303) | $ | 3,004 | |||||
Stock-based compensation | 151 | 136 | 135 | ||||||||
Restructure and asset impairments | 68 | 86 | — | ||||||||
Litigation contingency accrual | 68 | — | — | ||||||||
Other | 5 | 4 | 5 | ||||||||
Non-GAAP operating income (loss) | $ | (1,469) | $ | (2,077) | $ | 3,144 | |||||
GAAP net income (loss) |
$ | (1,896) | $ | (2,312) | $ | 2,626 | |||||
Stock-based compensation | 151 | 136 | 135 | ||||||||
Restructure and asset impairments | 68 | 86 | — | ||||||||
Litigation contingency accrual | 68 | — | — | ||||||||
Amortization of debt discount and other costs | 2 | 4 | 8 | ||||||||
Other | 5 | 4 | 5 | ||||||||
Impact of Idaho income tax reform | — | — | 189 | ||||||||
Estimated tax effects of above and other tax adjustments |
37 | 1 | (24) | ||||||||
Non-GAAP net income (loss) | $ | (1,565) | $ | (2,081) | $ | 2,939 | |||||
GAAP weighted-average common shares outstanding - Diluted |
1,094 | 1,091 | 1,121 | ||||||||
Adjustment for stock-based compensation |
— | — | 15 | ||||||||
Non-GAAP weighted-average common shares outstanding - Diluted |
1,094 | 1,091 | 1,136 | ||||||||
GAAP diluted earnings (loss) per share |
$ | (1.73) | $ | (2.12) | $ | 2.34 | |||||
Effects of the above adjustments |
0.30 | 0.21 | 0.25 | ||||||||
Non-GAAP diluted earnings (loss) per share |
$ | (1.43) | $ | (1.91) | $ | 2.59 |
3rd Qtr. | 2nd Qtr. | 3rd Qtr. | |||||||||
June 1, 2023 |
March 2, 2023 |
June 2, 2022 |
|||||||||
GAAP net cash provided by operating activities |
$ | 24 | $ | 343 | $ | 3,838 | |||||
Expenditures for property, plant, and equipment |
(1,561) | (2,205) | (2,578) | ||||||||
Proceeds from sales of property, plant, and equipment | 34 | 17 | 39 | ||||||||
Payments on equipment purchase contracts |
(36) | (29) | (27) | ||||||||
Amounts funded by partners |
184 | 62 | 38 | ||||||||
Investments in capital expenditures, net | (1,379) | (2,155) | (2,528) | ||||||||
Adjusted free cash flow |
$ | (1,355) | $ | (1,812) | $ | 1,310 |
FQ4-23 | GAAP Outlook | Adjustments | Non-GAAP Outlook | ||||||||||||||||||||
Revenue |
$3.90 billion ± $200 million | — | $3.90 billion ± $200 million | ||||||||||||||||||||
Gross margin |
(12.5%) ± 2.5% | 2.0% | A | (10.5%) ± 2.5% | |||||||||||||||||||
Operating expenses |
$946 million ± $15 million | $101 million | B | $845 million ± $15 million | |||||||||||||||||||
Diluted earnings (loss) per share(1) |
($1.34) ± $0.07 | $0.15 | A, B, C | ($1.19) ± $0.07 |
Non-GAAP Adjustments
(in millions)
|
|||||||||||||||||||||||
A |
Stock-based compensation – cost of goods sold |
$ | 57 | ||||||||||||||||||||
A |
Other – cost of goods sold |
4 | |||||||||||||||||||||
B |
Stock-based compensation – research and development |
59 | |||||||||||||||||||||
B |
Stock-based compensation – selling, general, and administrative |
42 | |||||||||||||||||||||
C |
Tax effects of the above items and other tax adjustments | 5 | |||||||||||||||||||||
$ | 167 |