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: | March 20, 2024 | By: | /s/ Mark Murphy | ||||||||
Name: | Mark Murphy | ||||||||||
Title: | Executive Vice President and Chief Financial Officer |
Contacts: | Satya Kumar |
Erica Rodriguez Pompen | ||||||
Investor Relations | Media Relations | |||||||
satyakumar@micron.com |
epompen@micron.com | |||||||
(408) 450-6199 |
(408) 834-1873 |
Quarterly Financial Results | |||||||||||||||||||||||
(in millions, except per share amounts) | GAAP(1) |
Non-GAAP(2) |
|||||||||||||||||||||
FQ2-24 |
FQ1-24 |
FQ2-23 |
FQ2-24 | FQ1-24 | FQ2-23 | ||||||||||||||||||
Revenue | $ | 5,824 | $ | 4,726 | $ | 3,693 | $ | 5,824 | $ | 4,726 | $ | 3,693 | |||||||||||
Gross margin | 1,079 | (35) | (1,206) | 1,163 | 37 | (1,161) | |||||||||||||||||
percent of revenue | 18.5 | % | (0.7 | %) | (32.7 | %) | 20.0 | % | 0.8 | % | (31.4 | %) | |||||||||||
Operating expenses | 888 | 1,093 | 1,097 | 959 | 992 | 916 | |||||||||||||||||
Operating income (loss) | 191 | (1,128) | (2,303) | 204 | (955) | (2,077) | |||||||||||||||||
percent of revenue | 3.3 | % | (23.9 | %) | (62.4 | %) | 3.5 | % | (20.2 | %) | (56.2 | %) | |||||||||||
Net income (loss) | 793 | (1,234) | (2,312) | 476 | (1,048) | (2,081) | |||||||||||||||||
Diluted earnings (loss) per share | 0.71 | (1.12) | (2.12) | 0.42 | (0.95) | (1.91) |
FQ3-24 |
GAAP(1) Outlook |
Non-GAAP(2) Outlook |
||||||
Revenue |
$6.60 billion ± $200 million | $6.60 billion ± $200 million | ||||||
Gross margin |
25.5% ± 1.5% | 26.5% ± 1.5% | ||||||
Operating expenses |
$1.11 billion ± $15 million | $990 million ± $15 million | ||||||
Diluted earnings per share |
$0.17 ± $0.07 | $0.45 ± $0.07 |
2nd Qtr. |
1st Qtr. |
2nd Qtr. |
Six months ended | ||||||||||||||
February 29, 2024 |
November 30, 2023 |
March 2, 2023 |
February 29, 2024 |
March 2, 2023 |
|||||||||||||
Revenue | $ | 5,824 | $ | 4,726 | $ | 3,693 | $ | 10,550 | $ | 7,778 | |||||||
Cost of goods sold | 4,745 | 4,761 | 4,899 | 9,506 | 8,091 | ||||||||||||
Gross margin | 1,079 | (35) | (1,206) | 1,044 | (313) | ||||||||||||
Research and development | 832 | 845 | 788 | 1,677 | 1,637 | ||||||||||||
Selling, general, and administrative | 280 | 263 | 231 | 543 | 482 | ||||||||||||
Restructure and asset impairments | — | — | 86 | — | 99 | ||||||||||||
Other operating (income) expense, net | (224) | (15) | (8) | (239) | (19) | ||||||||||||
Operating income (loss) | 191 | (1,128) | (2,303) | (937) | (2,512) | ||||||||||||
Interest income | 130 | 132 | 119 | 262 | 207 | ||||||||||||
Interest expense | (144) | (132) | (89) | (276) | (140) | ||||||||||||
Other non-operating income (expense), net | (7) | (27) | 2 | (34) | (2) | ||||||||||||
170 | (1,155) | (2,271) | (985) | (2,447) | |||||||||||||
Income tax (provision) benefit | 622 | (73) | (54) | 549 | (62) | ||||||||||||
Equity in net income (loss) of equity method investees | 1 | (6) | 13 | (5) | 2 | ||||||||||||
Net income (loss) | $ | 793 | $ | (1,234) | $ | (2,312) | $ | (441) | $ | (2,507) | |||||||
Earnings (loss) per share | |||||||||||||||||
Basic | $ | 0.72 | $ | (1.12) | $ | (2.12) | $ | (0.40) | $ | (2.30) | |||||||
Diluted | 0.71 | (1.12) | (2.12) | (0.40) | (2.30) | ||||||||||||
Number of shares used in per share calculations | |||||||||||||||||
Basic | 1,104 | 1,100 | 1,091 | 1,102 | 1,091 | ||||||||||||
Diluted | 1,114 | 1,100 | 1,091 | 1,102 | 1,091 |
As of | February 29, 2024 |
November 30, 2023 |
August 31, 2023 |
||||||||
Assets | |||||||||||
Cash and equivalents | $ | 8,016 | $ | 8,075 | $ | 8,577 | |||||
Short-term investments | 990 | 973 | 1,017 | ||||||||
Receivables | 4,296 | 2,943 | 2,443 | ||||||||
Inventories | 8,443 | 8,276 | 8,387 | ||||||||
Other current assets | 1,690 | 791 | 820 | ||||||||
Total current assets | 23,435 | 21,058 | 21,244 | ||||||||
Long-term marketable investments | 627 | 720 | 844 | ||||||||
Property, plant, and equipment | 37,587 | 37,677 | 37,928 | ||||||||
Operating lease right-of-use assets | 642 | 648 | 666 | ||||||||
Intangible assets | 414 | 416 | 404 | ||||||||
Deferred tax assets | 664 | 781 | 756 | ||||||||
Goodwill | 1,150 | 1,150 | 1,150 | ||||||||
Other noncurrent assets | 1,199 | 1,326 | 1,262 | ||||||||
Total assets | $ | 65,718 | $ | 63,776 | $ | 64,254 | |||||
Liabilities and equity | |||||||||||
Accounts payable and accrued expenses | $ | 4,680 | $ | 3,946 | $ | 3,958 | |||||
Current debt | 344 | 908 | 278 | ||||||||
Other current liabilities | 1,235 | 1,108 | 529 | ||||||||
Total current liabilities | 6,259 | 5,962 | 4,765 | ||||||||
Long-term debt | 13,378 | 12,597 | 13,052 | ||||||||
Noncurrent operating lease liabilities | 593 | 601 | 603 | ||||||||
Noncurrent unearned government incentives | 662 | 705 | 727 | ||||||||
Other noncurrent liabilities | 956 | 1,026 | 987 | ||||||||
Total liabilities | 21,848 | 20,891 | 20,134 | ||||||||
Commitments and contingencies | |||||||||||
Shareholders’ equity | |||||||||||
Common stock | 125 | 124 | 124 | ||||||||
Additional capital | 11,564 | 11,217 | 11,036 | ||||||||
Retained earnings | 39,997 | 39,356 | 40,824 | ||||||||
Treasury stock | (7,552) | (7,552) | (7,552) | ||||||||
Accumulated other comprehensive income (loss) | (264) | (260) | (312) | ||||||||
Total equity | 43,870 | 42,885 | 44,120 | ||||||||
Total liabilities and equity | $ | 65,718 | $ | 63,776 | $ | 64,254 |
Six months ended | February 29, 2024 |
March 2, 2023 |
||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | (441) | $ | (2,507) | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
||||||||
Depreciation expense and amortization of intangible assets | 3,839 | 3,863 | ||||||
Stock-based compensation | 401 | 303 | ||||||
Provision to write-down inventories to net realizable value |
— | 1,430 | ||||||
Change in operating assets and liabilities: |
||||||||
Receivables | (1,759) | 2,910 | ||||||
Inventories | (57) | (2,896) | ||||||
Other current assets |
(799) | 4 | ||||||
Accounts payable and accrued expenses | 573 | (1,144) | ||||||
Other current liabilities |
706 | (638) | ||||||
Other | 157 | (39) | ||||||
Net cash provided by operating activities | 2,620 | 1,286 | ||||||
Cash flows from investing activities | ||||||||
Expenditures for property, plant, and equipment | (3,180) | (4,654) | ||||||
Purchases of available-for-sale securities | (465) | (293) | ||||||
Proceeds from maturities and sales of available-for-sale securities |
726 | 773 | ||||||
Proceeds from government incentives | 234 | 64 | ||||||
Other | (24) | (71) | ||||||
Net cash provided by (used for) investing activities | (2,709) | (4,181) | ||||||
Cash flows from financing activities | ||||||||
Repayments of debt | (1,101) | (53) | ||||||
Payments of dividends to shareholders | (256) | (252) | ||||||
Payments on equipment purchase contracts | (82) | (76) | ||||||
Repurchases of common stock - repurchase program | — | (425) | ||||||
Proceeds from issuance of debt | 999 | 5,221 | ||||||
Other | (18) | 19 | ||||||
Net cash provided by (used for) financing activities | (458) | 4,434 | ||||||
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash |
(8) | 9 | ||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | (555) | 1,548 | ||||||
Cash, cash equivalents, and restricted cash at beginning of period | 8,656 | 8,339 | ||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 8,101 | $ | 9,887 |
2nd Qtr. | 1st Qtr. | 2nd Qtr. | Six months ended | ||||||||||||||
February 29, 2024 |
November 30, 2023 |
March 2, 2023 |
February 29, 2024 |
March 2, 2023 |
|||||||||||||
Provision to write down inventory to NRV | $ | — | $ | — | $ | (1,430) | $ | — | $ | (1,430) | |||||||
Lower costs from sale of inventory written down in prior periods |
382 | 605 | — | 987 | — | ||||||||||||
$ | 382 | $ | 605 | $ | (1,430) | $ | 987 | $ | (1,430) |
2nd Qtr. | 1st Qtr. | 2nd Qtr. | |||||||||
February 29, 2024 |
November 30, 2023 |
March 2, 2023 |
|||||||||
GAAP gross margin | $ | 1,079 | $ | (35) | $ | (1,206) | |||||
Stock-based compensation | 80 | 67 | 41 | ||||||||
Other | 4 | 5 | 4 | ||||||||
Non-GAAP gross margin | $ | 1,163 | $ | 37 | $ | (1,161) | |||||
GAAP operating expenses | $ | 888 | $ | 1,093 | $ | 1,097 | |||||
Stock-based compensation | (129) | (115) | (95) | ||||||||
Restructure and asset impairments | — | — | (86) | ||||||||
Patent cross-license agreement gain | 200 | — | — | ||||||||
Other | — | 14 | — | ||||||||
Non-GAAP operating expenses | $ | 959 | $ | 992 | $ | 916 | |||||
GAAP operating income (loss) | $ | 191 | $ | (1,128) | $ | (2,303) | |||||
Stock-based compensation | 209 | 182 | 136 | ||||||||
Restructure and asset impairments | — | — | 86 | ||||||||
Patent cross-license agreement gain | (200) | — | — | ||||||||
Other | 4 | (9) | 4 | ||||||||
Non-GAAP operating income (loss) | $ | 204 | $ | (955) | $ | (2,077) | |||||
GAAP net income (loss) |
$ | 793 | $ | (1,234) | $ | (2,312) | |||||
Stock-based compensation | 209 | 182 | 136 | ||||||||
Restructure and asset impairments | — | — | 86 | ||||||||
Patent cross-license agreement gain | (200) | — | — | ||||||||
Other | 2 | (10) | 8 | ||||||||
Estimated tax effects of above and other tax adjustments(1) |
(328) | 14 | 1 | ||||||||
Non-GAAP net income (loss) | $ | 476 | $ | (1,048) | $ | (2,081) | |||||
GAAP weighted-average common shares outstanding - Diluted |
1,114 | 1,100 | 1,091 | ||||||||
Adjustment for stock-based compensation |
20 | — | — | ||||||||
Non-GAAP weighted-average common shares outstanding - Diluted |
1,134 | 1,100 | 1,091 | ||||||||
GAAP diluted earnings (loss) per share |
$ | 0.71 | $ | (1.12) | $ | (2.12) | |||||
Effects of the above adjustments |
(0.29) | 0.17 | 0.21 | ||||||||
Non-GAAP diluted earnings (loss) per share |
$ | 0.42 | $ | (0.95) | $ | (1.91) |
2nd Qtr. | 1st Qtr. | 2nd Qtr. | |||||||||
February 29, 2024 |
November 30, 2023 |
March 2, 2023 |
|||||||||
GAAP net cash provided by operating activities |
$ | 1,219 | $ | 1,401 | $ | 343 | |||||
Expenditures for property, plant, and equipment |
(1,384) | (1,796) | (2,205) | ||||||||
Payments on equipment purchase contracts |
(26) | (56) | (29) | ||||||||
Proceeds from sales of property, plant, and equipment | 13 | 33 | 17 | ||||||||
Proceeds from government incentives |
149 | 85 | 62 | ||||||||
Investments in capital expenditures, net | (1,248) | (1,734) | (2,155) | ||||||||
Adjusted free cash flow |
$ | (29) | $ | (333) | $ | (1,812) |
FQ3-24 |
GAAP Outlook | Adjustments | Non-GAAP Outlook | ||||||||||||||||||||
Revenue |
$6.60 billion ± $200 million |
— | $6.60 billion ± $200 million |
||||||||||||||||||||
Gross margin |
25.5% ± 1.5% |
1.0% |
A | 26.5% ± 1.5% |
|||||||||||||||||||
Operating expenses |
$1.11 billion ± $15 million |
$123 million |
B | $990 million ± $15 million |
|||||||||||||||||||
Diluted earnings per share(1) |
$0.17 ± $0.07 |
$0.28 |
A, B, C | $0.45 ± $0.07 |
Non-GAAP Adjustments
(in millions)
|
|||||||||||||||||||||||
A |
Stock-based compensation – cost of goods sold |
$ | 78 | ||||||||||||||||||||
A |
Other – cost of goods sold |
4 | |||||||||||||||||||||
B |
Stock-based compensation – research and development |
76 | |||||||||||||||||||||
B |
Stock-based compensation – sales, general, and administrative |
47 | |||||||||||||||||||||
C |
Tax effects of the above items and other tax adjustments | 107 | |||||||||||||||||||||
$ | 312 |