Sales of the company’s memory products in the first quarter of fiscal 2009 decreased 4 percent compared to the preceding quarter as a result of significant decreases in market selling prices for the company’s products, partially offset by a higher sales volume. The company’s sales measured in gigabits increased 35 percent and 40 percent for DRAM and NAND Flash products, respectively. The sales volume, which outpaced production during the first quarter, resulted in a 15 percent decrease in gigabits of the company’s finished goods inventories during the quarter. Average selling prices for the company’s memory products decreased 34 percent and 24 percent for DRAM and NAND Flash products, respectively.
The company’s reported gross margin decreased in the first quarter compared to the preceding quarter as decreases in per gigabit average selling prices for memory products outpaced decreases in cost. Comparing the first quarter to the fourth quarter of fiscal 2008, absent the effects of the first quarter and prior period inventory write-downs, per gigabit costs decreased 12 percent and 14 percent for DRAM and NAND Flash products, respectively.
The company’s cost-cutting and restructuring activities have yielded reductions in operating costs in nearly all areas and contributed to the company’s cash flow from operating activities in the first quarter.
Sales of CMOS image sensors in the first quarter of fiscal 2009 were relatively stable compared to the preceding quarter. The company’s gross margin on sales of Imaging products also remained stable compared to the fourth quarter, reflecting a slight decrease in costs per part.
The company will host a conference call today at 2:30 p.m. MST to discuss its financial results. The call, audio and slides will be available online at www.micron.com. A webcast replay will be available on the company’s web site until Dec. 23, 2009. A taped audio replay of the conference call will also be available at 706-645-9291 (conference number: 76127953) beginning at 5:30 p.m. MST today and continuing until 5:30 p.m. MST on Dec. 30, 2008.
Micron Technology, Inc., is one of the world's leading providers of advanced semiconductor solutions. Through its worldwide operations, Micron manufactures and markets DRAM, NAND flash memory, CMOS image sensors, other semiconductor components, and memory modules for use in leading-edge computing, consumer, networking and mobile products. Micron's common stock is traded on the New York Stock Exchange (NYSE) under the MU symbol. To learn more about Micron Technology, Inc., visit www.micron.com.
|
MICRON TECHNOLOGY, INC. |
|||||||||||
|
CONSOLIDATED FINANCIAL SUMMARY |
|||||||||||
|
(Amounts in millions except per share data) |
|||||||||||
|
1st Qtr. |
4th Qtr. |
1st Qtr. |
|||||||||
|
Dec. 4, |
Aug. 28, |
Nov. 29, |
|||||||||
|
2008 |
2008 |
2007 |
|||||||||
| Net sales | $ | 1,402 | $ | 1,449 | $ | 1,535 | |||||
| Cost of goods sold (1) | 1,851 | 1,514 | 1,530 | ||||||||
| Gross margin | (449 | ) | (65 | ) | 5 | ||||||
| Selling, general and administrative | 102 | 107 | 112 | ||||||||
| Research and development | 178 | 167 | 163 | ||||||||
| Restructure (2) | (66 | ) | 4 | 13 | |||||||
| Other operating (income) expense, net (3) | 9 | (5 | ) | (23 | ) | ||||||
| Operating loss | (672 | ) | (338 | ) | (260 | ) | |||||
| Interest income (expense), net | (20 | ) | (9 | ) | 9 | ||||||
| Other non-operating income (expense), net | (14 | ) | (6 | ) | (1 | ) | |||||
| Income tax provision (4) | (13 | ) | (2 | ) | (7 | ) | |||||
| Noncontrolling interests in net (income) loss | 13 | 11 | (3 | ) | |||||||
| Net loss | $ | (706 | ) | $ | (344 | ) | $ | (262 | ) | ||
| Earnings (loss) per share: | |||||||||||
| Basic | $ | (0.91 | ) | $ | (0.45 | ) | $ | (0.34 | ) | ||
| Diluted | (0.91 | ) | (0.45 | ) | (0.34 | ) | |||||
| Number of shares used in per share calculations: | |||||||||||
| Basic | 773.3 | 772.9 | 771.9 | ||||||||
| Diluted | 773.3 | 772.9 | 771.9 | ||||||||
|
Reconciliation of GAAP to Non-GAAP Financial Measures (5) |
|||||||||||
| Gross margin: | |||||||||||
| On a GAAP basis | $ | (449 | ) | $ | (65 | ) | $ | 5 | |||
| Period-end inventory write-down | 369 | 205 | 62 | ||||||||
| Estimated net effect of previous write-downs | (157 | ) | (13 | ) | (14 | ) | |||||
| NAND Flash memory price adjustments | -- | (70 | ) | -- | |||||||
| On a non-GAAP basis | $ | (237 | ) | $ | 57 | $ | 53 | ||||
| Net loss: | |||||||||||
| On a GAAP basis | $ | (706 | ) | $ | (344 | ) | $ | (262 | ) | ||
| Period-end inventory write-down | 369 | 205 | 62 | ||||||||
| Estimated net effect of previous write-downs | (157 | ) | (13 | ) | (14 | ) | |||||
| Restructure | (66 | ) | 4 | 13 | |||||||
| NAND Flash memory price adjustments | -- | (70 | ) | -- | |||||||
| On a non-GAAP basis | $ | (560 | ) | $ | (218 | ) | $ | (201 | ) | ||
| Diluted earnings (loss) per share: | |||||||||||
| On a GAAP basis | $ | (0.91 | ) | $ | (0.45 | ) | $ | (0.34 | ) | ||
| Inventory write-downs | 0.48 | 0.27 | 0.08 | ||||||||
| Estimated net effect of previous write-downs | (0.20 | ) | (0.02 | ) | (0.02 | ) | |||||
| Restructure | (0.09 | ) | 0.01 | 0.02 | |||||||
| NAND Flash memory price adjustments | -- | (0.09 | ) | -- | |||||||
| On a non-GAAP basis | $ | (0.72 | ) | $ | (0.28 | ) | $ | (0.26 | ) | ||
|
CONSOLIDATED FINANCIAL SUMMARY, Continued |
||||||||
|
As of |
||||||||
|
Dec. 4, |
Aug. 28, |
|||||||
|
2008 |
2008 |
|||||||
| Cash and short-term investments | $ | 1,028 | $ | 1,362 | ||||
| Receivables | 1,031 | 1,032 | ||||||
| Inventories (1) | 883 | 1,291 | ||||||
| Total current assets | 3,037 | 3,779 | ||||||
| Property, plant and equipment, net | 8,460 | 8,811 | ||||||
| Total assets (6) | 12,676 | 13,430 | ||||||
| Accounts payable and accrued expenses | 943 | 1,111 | ||||||
| Current portion of long-term debt | 343 | 275 | ||||||
| Total current liabilities | 1,635 | 1,598 | ||||||
| Long-term debt | 2,523 | 2,451 | ||||||
| Noncontrolling interests in subsidiaries | 2,702 | 2,865 | ||||||
| Total shareholders’ equity | 5,484 | 6,178 | ||||||
|
Quarter Ended |
||||||||
|
Dec. 4, |
Nov. 29, |
|||||||
|
2008 |
2007 |
|||||||
| Net cash provided by operating activities | $ | 359 | $ | 276 | ||||
| Net cash used for investing activities | (489 | ) | (406 | ) | ||||
| Net cash provided by financing activities | (88 | ) | (182 | ) | ||||
| Depreciation and amortization | 594 | 504 | ||||||
| Expenditures for property, plant and equipment | (270 | ) | (765 | ) | ||||
| Net cash received from (paid to) noncontrolling interests | (150 | ) | 150 | |||||
| Payments on equipment purchase contracts | (64 | ) | (122 | ) | ||||
| Noncash equipment acquisitions on contracts | ||||||||
| payable and capital leases | 153 | 152 | ||||||
