• Micron Technology, Inc. Reports Results for the Third Quarter of Fiscal 2023

    المصدر: Nasdaq GlobeNewswire / 28 يونيو 2023 15:04:05   America/Chicago

    BOISE, Idaho, June 28, 2023 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its third quarter of fiscal 2023, which ended June 1, 2023.

    Fiscal Q3 2023 highlights

    • Revenue of $3.75 billion versus $3.69 billion for the prior quarter and $8.64 billion for the same period last year
    • GAAP net loss of $1.90 billion, or $1.73 per diluted share
    • Non-GAAP net loss of $1.57 billion, or $1.43 per diluted share
    • Operating cash flow of $24 million versus $343 million for the prior quarter and $3.84 billion for the same period last year

    “Micron delivered fiscal third quarter revenue, gross margin, and EPS all above the midpoint of the guidance range,” said Micron Technology President and CEO Sanjay Mehrotra. “We believe that the memory industry has passed its trough in revenue, and we expect margins to improve as industry supply-demand balance is gradually restored. The recent Cyberspace Administration of China (“CAC”) decision is a significant headwind that is impacting our outlook and slowing our recovery. Longer-term, Micron’s technology leadership, product portfolio, and operational excellence continues to strengthen our competitive positioning across diverse growth markets, including AI and memory-centric computing.”

    Quarterly Financial Results
    (in millions, except per share amounts)
    GAAP(1) Non-GAAP(2)
    FQ3-23FQ2-23FQ3-22 FQ3-23FQ2-23FQ3-22
            
    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 


    Investments in capital expenditures, net(2) were $1.38 billion for the third quarter of 2023, which resulted in adjusted free cash flows(2) of negative $1.36 billion. Micron ended the third quarter of 2023 with cash, marketable investments, and restricted cash of $11.40 billion. Micron’s Board of Directors has declared a quarterly dividend of $0.115 per share, payable in cash on July 25, 2023, to shareholders of record as of the close of business on July 10, 2023.

    Business Outlook

    The table below presents Micron’s guidance for the fourth quarter of 2023:

    FQ4-23GAAP(1) OutlookNon-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


    Further information regarding Micron’s business outlook is included in the prepared remarks and slides, which have been posted at investors.micron.com.

    Investor Webcast

    Micron will host a conference call on Wednesday, June 28, 2023 at 2:30 p.m. Mountain Time to discuss its third quarter financial results and provide forward-looking guidance for its fourth quarter. A live webcast of the call will be available online at investors.micron.com. A webcast replay will be available for one year after the call. For Investor Relations and other company updates, follow @MicronTech on Twitter at twitter.com/MicronTech.

    About Micron Technology, Inc.

    We are an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND, and NOR memory and storage products through our Micron® and Crucial® brands. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence and 5G applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.

    © 2023 Micron Technology, Inc. All rights reserved. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners.

    Forward-Looking Statements

    This press release contains forward-looking statements regarding our industry, our strategic position, and our financial and operating results. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents we file with the Securities and Exchange Commission, including our most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at micron.com/certainfactors. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements to conform these statements to actual results.

    (1)GAAP represents U.S. Generally Accepted Accounting Principles.
    (2)Non-GAAP represents GAAP excluding the impact of certain activities, which management excludes in analyzing our operating results and understanding trends in our earnings, adjusted free cash flow, and business outlook. Further information regarding Micron’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release.



    MICRON TECHNOLOGY, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (In millions, except per share amounts)
    (Unaudited)
     
     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 


     
    MICRON TECHNOLOGY, INC.
    CONSOLIDATED BALANCE SHEETS
    (In millions)
    (Unaudited)
     
    As ofJune 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 


     
    MICRON TECHNOLOGY, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In millions)
    (Unaudited)
     
    Nine months endedJune 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 


    MICRON TECHNOLOGY, INC.
    NOTES
    (Unaudited)

    Inventories

    In the third and second quarters of 2023, we recorded charges to cost of goods sold to write down the carrying value of work in process and finished goods inventories to their estimated net realizable values (“NRV”). The impact of inventory NRV write-downs for each period reflects (1) inventory write-downs in that period, offset by (2) lower costs in that period on the sale of inventory written down in prior periods. The impacts of inventory NRV write-downs are summarized below:

     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)$


    Debt Activity

    On April 11, 2023, we issued $600 million principal amount of 5.375% senior unsecured notes due April 15, 2028 and received proceeds of $596 million. Additionally, we issued $900 million principal amount of 5.875% senior unsecured notes due September 15, 2033 and received proceeds of $890 million. On April 13, 2023, we used a portion of the proceeds from the debt issuance to prepay $600 million principal amount of our senior term loan A due October 2024.

     
    MICRON TECHNOLOGY, INC.
    RECONCILIATION OF GAAP TO NON-GAAP MEASURES
    (In millions, except per share amounts)
     
     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 


     
    RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
     
     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 


    The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income (loss), net income (loss), diluted shares, diluted earnings (loss) per share, and adjusted free cash flow. The non-GAAP adjustments above may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. We believe this non-GAAP information is helpful in understanding trends and in analyzing our operating results and earnings. We are providing this information to investors to assist in performing analysis of our operating results. When evaluating performance and making decisions on how to allocate our resources, management uses this non-GAAP information and believes investors should have access to similar data when making their investment decisions. We believe these non-GAAP financial measures increase transparency by providing investors with useful supplemental information about the financial performance of our business, enabling enhanced comparison of our operating results between periods and with peer companies. The presentation of these adjusted amounts varies from amounts presented in accordance with U.S. GAAP and therefore may not be comparable to amounts reported by other companies. Our management routinely excludes the following items in analyzing our operating results and understanding trends in our earnings:

    • Stock-based compensation;
    • Flow-through of business acquisition-related inventory adjustments;
    • Acquisition-related costs;
    • Employee severance;
    • Gains and losses from settlements;
    • Restructure and asset impairments;
    • Amortization of debt discount and other costs;
    • Gains and losses from debt repurchases and conversions;
    • Gains and losses from business acquisition activities; and
    • The estimated tax effects of above, non-cash changes in net deferred income taxes, assessments of tax exposures, certain tax matters related to prior fiscal periods, and significant changes in tax law.

    Non-GAAP diluted shares are adjusted for the impact of additional shares resulting from the exclusion of stock-based compensation from non-GAAP income (loss).

     
    MICRON TECHNOLOGY, INC.
    RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
     
    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)
      
        
    AStock-based compensation – cost of goods sold $57
    AOther – cost of goods sold  4
    BStock-based compensation – research and development  59
    BStock-based compensation – selling, general, and administrative  42
    CTax effects of the above items and other tax adjustments  5
       $167

    (1)   GAAP and non-GAAP earnings (loss) per share based on approximately 1.10 billion diluted shares.


    The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, additional restructuring activities, balance sheet valuation adjustments, strategic investments, financing transactions, and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.


    Contacts:
    
    Farhan Ahmad
    Investor Relations
    farhanahmad@micron.com
    (408) 834-1927
    
    Erica Rodriguez Pompen
    Media Relations
    epompen@micron.com
    (408) 834-1873

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