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 26, 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) |
|||||||||||||||||||||
FQ3-24 |
FQ2-24 |
FQ3-23 |
FQ3-24 | FQ2-24 | FQ3-23 | ||||||||||||||||||
Revenue | $ | 6,811 | $ | 5,824 | $ | 3,752 | $ | 6,811 | $ | 5,824 | $ | 3,752 | |||||||||||
Gross margin | 1,832 | 1,079 | (668) | 1,917 | 1,163 | (603) | |||||||||||||||||
percent of revenue | 26.9 | % | 18.5 | % | (17.8 | %) | 28.1 | % | 20.0 | % | (16.1 | %) | |||||||||||
Operating expenses | 1,113 | 888 | 1,093 | 976 | 959 | 866 | |||||||||||||||||
Operating income (loss) | 719 | 191 | (1,761) | 941 | 204 | (1,469) | |||||||||||||||||
percent of revenue | 10.6 | % | 3.3 | % | (46.9 | %) | 13.8 | % | 3.5 | % | (39.2 | %) | |||||||||||
Net income (loss) | 332 | 793 | (1,896) | 702 | 476 | (1,565) | |||||||||||||||||
Diluted earnings (loss) per share | 0.30 | 0.71 | (1.73) | 0.62 | 0.42 | (1.43) |
FQ4-24 |
GAAP(1) Outlook |
Non-GAAP(2) Outlook |
||||||
Revenue |
$7.60 billion ± $200 million | $7.60 billion ± $200 million | ||||||
Gross margin |
33.5% ± 1.0% | 34.5% ± 1.0% | ||||||
Operating expenses |
$1.19 billion ± $15 million | $1.06 billion ± $15 million | ||||||
Diluted earnings per share |
$0.61 ± $0.08 | $1.08 ± $0.08 |
3rd Qtr. |
2nd Qtr. | 3rd Qtr. |
Nine months ended | ||||||||||||||
May 30, 2024 |
February 29, 2024 |
June 1, 2023 |
May 30, 2024 |
June 1, 2023 |
|||||||||||||
Revenue | $ | 6,811 | $ | 5,824 | $ | 3,752 | $ | 17,361 | $ | 11,530 | |||||||
Cost of goods sold | 4,979 | 4,745 | 4,420 | 14,485 | 12,511 | ||||||||||||
Gross margin | 1,832 | 1,079 | (668) | 2,876 | (981) | ||||||||||||
Research and development | 850 | 832 | 758 | 2,527 | 2,395 | ||||||||||||
Selling, general, and administrative | 291 | 280 | 219 | 834 | 701 | ||||||||||||
Restructure and asset impairments | — | — | 68 | — | 167 | ||||||||||||
Other operating (income) expense, net | (28) | (224) | 48 | (267) | 29 | ||||||||||||
Operating income (loss) | 719 | 191 | (1,761) | (218) | (4,273) | ||||||||||||
Interest income | 136 | 130 | 127 | 398 | 334 | ||||||||||||
Interest expense | (150) | (144) | (119) | (426) | (259) | ||||||||||||
Other non-operating income (expense), net | 10 | (7) | — | (24) | (2) | ||||||||||||
715 | 170 | (1,753) | (270) | (4,200) | |||||||||||||
Income tax (provision) benefit | (377) | 622 | (139) | 172 | (201) | ||||||||||||
Equity in net income (loss) of equity method investees | (6) | 1 | (4) | (11) | (2) | ||||||||||||
Net income (loss) | $ | 332 | $ | 793 | $ | (1,896) | $ | (109) | $ | (4,403) | |||||||
Earnings (loss) per share | |||||||||||||||||
Basic | $ | 0.30 | $ | 0.72 | $ | (1.73) | $ | (0.10) | $ | (4.03) | |||||||
Diluted | 0.30 | 0.71 | (1.73) | (0.10) | (4.03) | ||||||||||||
Number of shares used in per share calculations | |||||||||||||||||
Basic | 1,107 | 1,104 | 1,094 | 1,104 | 1,092 | ||||||||||||
Diluted | 1,123 | 1,114 | 1,094 | 1,104 | 1,092 |
As of | May 30, 2024 |
February 29, 2024 |
August 31, 2023 |
||||||||
Assets | |||||||||||
Cash and equivalents | $ | 7,594 | $ | 8,016 | $ | 8,577 | |||||
Short-term investments | 785 | 990 | 1,017 | ||||||||
Receivables | 5,131 | 4,296 | 2,443 | ||||||||
Inventories | 8,512 | 8,443 | 8,387 | ||||||||
Other current assets | 1,297 | 1,690 | 820 | ||||||||
Total current assets | 23,319 | 23,435 | 21,244 | ||||||||
Long-term marketable investments | 775 | 627 | 844 | ||||||||
Property, plant, and equipment | 37,926 | 37,587 | 37,928 | ||||||||
Operating lease right-of-use assets | 660 | 642 | 666 | ||||||||
Intangible assets | 413 | 414 | 404 | ||||||||
Deferred tax assets | 597 | 664 | 756 | ||||||||
Goodwill | 1,150 | 1,150 | 1,150 | ||||||||
Other noncurrent assets | 1,415 | 1,199 | 1,262 | ||||||||
Total assets | $ | 66,255 | $ | 65,718 | $ | 64,254 | |||||
Liabilities and equity | |||||||||||
Accounts payable and accrued expenses | $ | 5,145 | $ | 4,680 | $ | 3,958 | |||||
Current debt | 398 | 344 | 278 | ||||||||
Other current liabilities | 1,297 | 1,235 | 529 | ||||||||
Total current liabilities | 6,840 | 6,259 | 4,765 | ||||||||
Long-term debt | 12,860 | 13,378 | 13,052 | ||||||||
Noncurrent operating lease liabilities | 609 | 593 | 603 | ||||||||
Noncurrent unearned government incentives | 672 | 662 | 727 | ||||||||
Other noncurrent liabilities | 1,049 | 956 | 987 | ||||||||
Total liabilities | 22,030 | 21,848 | 20,134 | ||||||||
Commitments and contingencies | |||||||||||
Shareholders’ equity | |||||||||||
Common stock | 125 | 125 | 124 | ||||||||
Additional capital | 11,794 | 11,564 | 11,036 | ||||||||
Retained earnings | 40,169 | 39,997 | 40,824 | ||||||||
Treasury stock | (7,552) | (7,552) | (7,552) | ||||||||
Accumulated other comprehensive income (loss) | (311) | (264) | (312) | ||||||||
Total equity | 44,225 | 43,870 | 44,120 | ||||||||
Total liabilities and equity | $ | 66,255 | $ | 65,718 | $ | 64,254 |
Nine months ended | May 30, 2024 |
June 1, 2023 |
||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | (109) | $ | (4,403) | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
||||||||
Depreciation expense and amortization of intangible assets | 5,794 | 5,819 | ||||||
Stock-based compensation | 620 | 448 | ||||||
Provision to write-down inventories to net realizable value |
— | 1,831 | ||||||
Change in operating assets and liabilities: |
||||||||
Receivables | (2,562) | 2,728 | ||||||
Inventories | (125) | (3,406) | ||||||
Other current assets |
(435) | (35) | ||||||
Accounts payable and accrued expenses | 846 | (1,113) | ||||||
Other current liabilities |
769 | (677) | ||||||
Other | 304 | 118 | ||||||
Net cash provided by operating activities | 5,102 | 1,310 | ||||||
Cash flows from investing activities | ||||||||
Expenditures for property, plant, and equipment | (5,266) | (6,215) | ||||||
Purchases of available-for-sale securities | (1,110) | (496) | ||||||
Proceeds from maturities and sales of available-for-sale securities |
1,433 | 1,192 | ||||||
Proceeds from government incentives | 267 | 248 | ||||||
Other | (35) | (90) | ||||||
Net cash provided by (used for) investing activities | (4,711) | (5,361) | ||||||
Cash flows from financing activities | ||||||||
Repayments of debt | (1,816) | (706) | ||||||
Payments of dividends to shareholders | (384) | (378) | ||||||
Payments on equipment purchase contracts | (127) | (112) | ||||||
Repurchases of common stock - repurchase program | — | (425) | ||||||
Proceeds from issuance of debt | 999 | 6,716 | ||||||
Other | (40) | — | ||||||
Net cash provided by (used for) financing activities | (1,368) | 5,095 | ||||||
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash |
(15) | (13) | ||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | (992) | 1,031 | ||||||
Cash, cash equivalents, and restricted cash at beginning of period | 8,656 | 8,339 | ||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 7,664 | $ | 9,370 |
3rd Qtr. | 2nd Qtr. | 3rd Qtr. | Nine months ended | ||||||||||||||
May 30, 2024 |
February 29, 2024 |
June 1, 2023 |
May 30, 2024 |
June 1, 2023 |
|||||||||||||
Provision to write down inventory to NRV | $ | — | $ | — | $ | (401) | $ | — | $ | (1,831) | |||||||
Lower costs from sale of inventory written down in prior periods |
— | 382 | 281 | 987 | 281 | ||||||||||||
$ | — | $ | 382 | $ | (120) | $ | 987 | $ | (1,550) |
3rd Qtr. | 2nd Qtr. | 3rd Qtr. | |||||||||
May 30, 2024 |
February 29, 2024 |
June 1, 2023 |
|||||||||
GAAP gross margin | $ | 1,832 | $ | 1,079 | $ | (668) | |||||
Stock-based compensation | 80 | 80 | 60 | ||||||||
Other | 5 | 4 | 5 | ||||||||
Non-GAAP gross margin | $ | 1,917 | $ | 1,163 | $ | (603) | |||||
GAAP operating expenses | $ | 1,113 | $ | 888 | $ | 1,093 | |||||
Stock-based compensation | (137) | (129) | (91) | ||||||||
Restructure and asset impairments | — | — | (68) | ||||||||
Patent cross-license agreement gain | — | 200 | — | ||||||||
Litigation settlement |
— | — | (68) | ||||||||
Non-GAAP operating expenses | $ | 976 | $ | 959 | $ | 866 | |||||
GAAP operating income (loss) | $ | 719 | $ | 191 | $ | (1,761) | |||||
Stock-based compensation | 217 | 209 | 151 | ||||||||
Restructure and asset impairments | — | — | 68 | ||||||||
Patent cross-license agreement gain | — | (200) | — | ||||||||
Litigation settlement | — | — | 68 | ||||||||
Other | 5 | 4 | 5 | ||||||||
Non-GAAP operating income (loss) | $ | 941 | $ | 204 | $ | (1,469) | |||||
GAAP net income (loss) |
$ | 332 | $ | 793 | $ | (1,896) | |||||
Stock-based compensation | 217 | 209 | 151 | ||||||||
Restructure and asset impairments | — | — | 68 | ||||||||
Patent cross-license agreement gain | — | (200) | — | ||||||||
Litigation settlement | — | — | 68 | ||||||||
Other | 3 | 2 | 7 | ||||||||
Estimated tax effects of above and other tax adjustments(1) |
150 | (328) | 37 | ||||||||
Non-GAAP net income (loss) | $ | 702 | $ | 476 | $ | (1,565) | |||||
GAAP weighted-average common shares outstanding - Diluted |
1,123 | 1,114 | 1,094 | ||||||||
Adjustment for stock-based compensation |
13 | 20 | — | ||||||||
Non-GAAP weighted-average common shares outstanding - Diluted |
1,136 | 1,134 | 1,094 | ||||||||
GAAP diluted earnings (loss) per share |
$ | 0.30 | $ | 0.71 | $ | (1.73) | |||||
Effects of the above adjustments |
0.32 | (0.29) | 0.30 | ||||||||
Non-GAAP diluted earnings (loss) per share |
$ | 0.62 | $ | 0.42 | $ | (1.43) |
3rd Qtr. | 2nd Qtr. | 3rd Qtr. | |||||||||
May 30, 2024 |
February 29, 2024 |
June 1, 2023 |
|||||||||
GAAP net cash provided by operating activities |
$ | 2,482 | $ | 1,219 | $ | 24 | |||||
Expenditures for property, plant, and equipment |
(2,086) | (1,384) | (1,561) | ||||||||
Payments on equipment purchase contracts |
(45) | (26) | (36) | ||||||||
Proceeds from sales of property, plant, and equipment | 41 | 13 | 34 | ||||||||
Proceeds from government incentives |
33 | 149 | 184 | ||||||||
Investments in capital expenditures, net | (2,057) | (1,248) | (1,379) | ||||||||
Adjusted free cash flow |
$ | 425 | $ | (29) | $ | (1,355) |
FQ4-24 |
GAAP Outlook | Adjustments | Non-GAAP Outlook | ||||||||||||||||||||
Revenue |
$7.60 billion ± $200 million |
— | $7.60 billion ± $200 million |
||||||||||||||||||||
Gross margin |
33.5% ± 1.0% |
1.0% |
A | 34.5% ± 1.0% |
|||||||||||||||||||
Operating expenses |
$1.19 billion ± $15 million |
$125 million |
B | $1.06 billion ± $15 million |
|||||||||||||||||||
Diluted earnings per share(1) |
$0.61 ± $0.08 |
$0.47 |
A, B, C | $1.08 ± $0.08 |
Non-GAAP Adjustments
(in millions)
|
|||||||||||||||||||||||
A |
Stock-based compensation – cost of goods sold |
$ | 84 | ||||||||||||||||||||
A |
Other – cost of goods sold |
4 | |||||||||||||||||||||
B |
Stock-based compensation – research and development |
77 | |||||||||||||||||||||
B |
Stock-based compensation – sales, general, and administrative |
48 | |||||||||||||||||||||
C |
Tax effects of the above items and other tax adjustments | 315 | |||||||||||||||||||||
$ | 528 |