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Micron Technology, Inc. Reports Results for the Fourth Quarter and Full Year of Fiscal 2022
المصدر: Nasdaq GlobeNewswire / 29 سبتمبر 2022 16:02:01 America/New_York
BOISE, Idaho, Sept. 29, 2022 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its fourth quarter and full year of fiscal 2022, which ended September 1, 2022.
Fiscal Q4 2022 highlights
- Revenue of $6.64 billion versus $8.64 billion for the prior quarter and $8.27 billion for the same period last year
- GAAP net income of $1.49 billion, or $1.35 per diluted share
- Non-GAAP net income of $1.62 billion, or $1.45 per diluted share
- Operating cash flow of $3.78 billion versus $3.84 billion for the prior quarter and $3.88 billion for the same period last year
Fiscal 2022 highlights
- Revenue of $30.76 billion versus $27.71 billion for the prior year
- GAAP net income of $8.69 billion, or $7.75 per diluted share
- Non-GAAP net income of $9.48 billion, or $8.35 per diluted share
- Operating cash flow of $15.18 billion versus $12.47 billion for the prior year
“In fiscal 2022, Micron generated record revenue of $30.8 billion and delivered our sixth consecutive year of positive free cash flow, allowing us to return a record $2.9 billion to our shareholders,” said Micron Technology President and CEO Sanjay Mehrotra. “Our technology and manufacturing leadership in both DRAM and NAND, deep customer relationships, diverse product portfolio, and strong balance sheet put Micron on solid footing to navigate the weakened near-term supply-demand environment. We are taking decisive steps to reduce our supply growth including a nearly 50% wafer fab equipment capex cut versus last year, and we expect to emerge from this downcycle well positioned to capitalize on the long-term demand for memory and storage.”
Quarterly Financial Results (in millions, except per share amounts) GAAP(1) Non-GAAP(2) FQ4-22 FQ3-22 FQ4-21 FQ4-22 FQ3-22 FQ4-21 Revenue $ 6,643 $ 8,642 $ 8,274 $ 6,643 $ 8,642 $ 8,274 Gross margin 2,622 4,035 3,912 2,676 4,097 3,964 percent of revenue 39.5 % 46.7 % 47.3 % 40.3 % 47.4 % 47.9 % Operating expenses 1,101 1,031 957 1,014 953 891 Operating income 1,521 3,004 2,955 1,662 3,144 3,073 percent of revenue 22.9 % 34.8 % 35.7 % 25.0 % 36.4 % 37.1 % Net income 1,492 2,626 2,720 1,621 2,939 2,778 Diluted earnings per share 1.35 2.34 2.39 1.45 2.59 2.42 Annual Financial Results (in millions, except per share amounts) GAAP(1) Non-GAAP(2) FY 22 FY 21 FY 22 FY 21 Revenue $ 30,758 $ 27,705 $ 30,758 $ 27,705 Gross margin 13,898 10,423 14,113 10,987 percent of revenue 45.2 % 37.6 % 45.9 % 39.7 % Operating expenses 4,196 4,140 3,832 3,320 Operating income 9,702 6,283 10,281 7,667 percent of revenue 31.5 % 22.7 % 33.4 % 27.7 % Net income 8,687 5,861 9,475 6,976 Diluted earnings per share 7.75 5.14 8.35 6.06 Investments in capital expenditures, net(2) were $3.58 billion for the fourth quarter of 2022 and $11.98 billion for the full year of 2022, which resulted in adjusted free cash flows(2) of $196 million for the fourth quarter of 2022 and $3.21 billion for the full year of 2022. Micron repurchased approximately 13.2 million shares of its common stock for $784 million during the fourth quarter of 2022 and 35.4 million shares of its common stock for $2.43 billion during the full year of 2022 and ended the year with cash, marketable investments, and restricted cash of $11.06 billion, for a net cash(2) position of $4.15 billion. On September 29, 2022, Micron’s Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on October 26, 2022, to shareholders of record as of the close of business on October 11, 2022.
Business Outlook
The following table presents Micron’s guidance for the first quarter of 2023:
FQ1-23 GAAP(1) Outlook Non-GAAP(2) Outlook Revenue $4.25 billion ± $250 million $4.25 billion ± $250 million Gross margin 25.0% ± 2.0% 26.0% ± 2.0% Operating expenses $1.09 billion ± $25 million $1.00 billion ± $25 million Diluted earnings (loss) per share ($0.09) ± $0.10 $0.04 ± $0.10 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 Thursday, September 29, 2022 at 2:30 p.m. Mountain Time to discuss its fourth quarter financial results and provide forward-looking guidance for its first 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.
© 2022 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, net cash, 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)4th Qtr. 3rd Qtr. 4th Qtr. Year Ended September 1,
2022June 2,
2022September 2,
2021September 1,
2022September 2,
2021Revenue $ 6,643 $ 8,642 $ 8,274 $ 30,758 $ 27,705 Cost of goods sold 4,021 4,607 4,362 16,860 17,282 Gross margin 2,622 4,035 3,912 13,898 10,423 Research and development 839 773 705 3,116 2,663 Selling, general, and administrative 280 264 236 1,066 894 Restructure and asset impairments 5 — 22 48 488 Other operating (income) expense, net (23 ) (6 ) (6 ) (34 ) 95 Operating income 1,521 3,004 2,955 9,702 6,283 Interest income 54 20 9 96 37 Interest expense (45 ) (44 ) (47 ) (189 ) (183 ) Other non-operating income (expense), net 23 8 19 (38 ) 81 1,553 2,988 2,936 9,571 6,218 Income tax (provision) benefit (56 ) (358 ) (230 ) (888 ) (394 ) Equity in net income (loss) of equity method investees (5 ) (4 ) 14 4 37 Net income $ 1,492 $ 2,626 $ 2,720 $ 8,687 $ 5,861 Earnings per share Basic $ 1.36 $ 2.36 $ 2.42 $ 7.81 $ 5.23 Diluted 1.35 2.34 2.39 7.75 5.14 Number of shares used in per share calculations Basic 1,097 1,112 1,123 1,112 1,120 Diluted 1,106 1,121 1,138 1,122 1,141 MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)As of September 1,
2022June 2,
2022September 2,
2021Assets Cash and equivalents $ 8,262 $ 9,157 $ 7,763 Short-term investments 1,069 1,070 870 Receivables 5,130 6,229 5,311 Inventories 6,663 5,629 4,487 Assets held for sale 13 15 974 Other current assets 644 608 502 Total current assets 21,781 22,708 19,907 Long-term marketable investments 1,647 1,646 1,765 Property, plant, and equipment 38,549 36,665 33,213 Operating lease right-of-use assets 678 690 551 Intangible assets 421 415 349 Deferred tax assets 702 682 782 Goodwill 1,228 1,228 1,228 Other noncurrent assets 1,277 1,262 1,054 Total assets $ 66,283 $ 65,296 $ 58,849 Liabilities and equity Accounts payable and accrued expenses $ 6,090 $ 5,788 $ 5,325 Current debt 103 107 155 Other current liabilities 1,346 1,114 944 Total current liabilities 7,539 7,009 6,424 Long-term debt 6,803 6,856 6,621 Noncurrent operating lease liabilities 610 629 504 Noncurrent unearned government incentives 589 663 808 Other noncurrent liabilities 835 858 559 Total liabilities 16,376 16,015 14,916 Commitments and contingencies Shareholders’ equity Common stock 123 122 122 Additional capital 10,197 9,950 9,453 Retained earnings 47,274 45,916 39,051 Treasury stock (7,127 ) (6,343 ) (4,695 ) Accumulated other comprehensive income (loss) (560 ) (364 ) 2 Total equity 49,907 49,281 43,933 Total liabilities and equity $ 66,283 $ 65,296 $ 58,849 MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)For the year ended September 1,
2022September 2,
2021Cash flows from operating activities Net income $ 8,687 $ 5,861 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense and amortization of intangible assets 7,116 6,214 Stock-based compensation 514 378 (Gain) loss on debt repurchases and conversions 83 1 Restructure and asset impairment 44 454 Change in operating assets and liabilities: Receivables 190 (1,446 ) Inventories (2,179 ) 866 Accounts payable and accrued expenses 744 210 Other (18 ) (70 ) Net cash provided by operating activities 15,181 12,468 Cash flows from investing activities Expenditures for property, plant, and equipment (12,067 ) (10,030 ) Purchases of available-for-sale securities (1,770 ) (3,163 ) Proceeds from maturities of available-for-sale securities 1,321 1,250 Proceeds from sale of Lehi, Utah fab 888 — Proceeds from sales of available-for-sale securities 294 856 Proceeds from government incentives 115 495 Other (366 ) 3 Net cash provided by (used for) investing activities (11,585 ) (10,589 ) Cash flows from financing activities Repurchases of common stock - repurchase program (2,432 ) (1,200 ) Repayments of debt (2,032 ) (1,520 ) Payments of dividends to shareholders (461 ) — Payments on equipment purchase contracts (141 ) (295 ) Repurchases of common stock - withholdings on employee equity awards (125 ) (94 ) Proceeds from issuance of debt 2,000 1,188 Other 211 140 Net cash provided by (used for) financing activities (2,980 ) (1,781 ) Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash (106 ) 41 Net increase (decrease) in cash, cash equivalents, and restricted cash 510 139 Cash, cash equivalents, and restricted cash at beginning of period 7,829 7,690 Cash, cash equivalents, and restricted cash at end of period $ 8,339 $ 7,829 MICRON TECHNOLOGY, INC.
NOTES
(Unaudited)Lehi, Utah, Fab and 3D XPoint
In the second quarter of 2021, we updated our portfolio strategy to further strengthen our focus on memory and storage innovations for the data center market. In connection therewith, we determined that there was insufficient market validation to justify the ongoing investments required to commercialize 3D XPoint at scale. Accordingly, we ceased development of 3D XPoint technology and engaged in discussions with potential buyers for the sale of our facility located in Lehi, Utah that was dedicated to 3D XPoint production. As a result, we classified the property, plant, and equipment as held for sale as of the second quarter of 2021 and ceased depreciating the assets. On June 30, 2021, we announced a definitive agreement to sell our Lehi facility to Texas Instruments Incorporated ("TI”) and closed the sale on October 22, 2021.
In the first quarter of 2022, we received $893 million from TI for the sale of the Lehi facility and disposed of $918 million of net assets, consisting primarily of property, plant, and equipment of $921 million; $55 million of other assets, consisting primarily of a receivable for reimbursement of property taxes, equipment spare parts, and raw materials; and $58 million of liabilities, consisting primarily of a finance lease obligation. As a result of the disposition of the Lehi facility and other related adjustments, we recognized a loss of $23 million included in restructure and asset impairments in the first quarter of 2022.
In 2021, we recognized a charge of $435 million included in restructure and asset impairments in connection with the definitive agreement with TI (and a tax benefit of $104 million included in income tax (provision) benefit) to write down the assets held for sale to the expected consideration, net of estimated selling costs. The impairment charge was based on Level 3 inputs including expected consideration and the composition of assets included in the sale, which were derived from the agreement with TI. We also recognized a charge of $49 million to cost of goods sold in 2021 to write down 3D XPoint inventory due to our decision to cease further development of this technology. Our 3D XPoint technology development and Lehi facility operations were primarily included in our CNBU segment results.
Debt Activity
On November 1, 2021, we issued in a public offering $1.00 billion in principal amount of 2.703% senior notes due 2032 (green bonds), $500 million in principal amount of 3.366% senior notes due 2041, and $500 million in principal amount of 3.477% senior notes due 2051, and received aggregate net proceeds of $1.99 billion.
On November 17, 2021, we redeemed $1.25 billion in principal amount of our 2.497% senior notes due 2023 and $600 million in principal amount of our 4.640% senior notes due 2024 for $1.93 billion in cash and recognized a non-operating loss of $83 million.
MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In millions, except per share amounts)4th Qtr. 3rd Qtr. 4th Qtr. Year Ended September 1,
2022June 2,
2022September 2,
2021September 1,
2022September 2,
2021GAAP gross margin $ 2,622 $ 4,035 $ 3,912 $ 13,898 $ 10,423 Stock-based compensation 49 57 43 193 186 Inventory accounting policy change to FIFO — — — — 133 Change in inventory cost absorption — — — — 160 3D XPoint inventory write-down — — — — 49 Other 5 5 9 22 36 Non-GAAP gross margin $ 2,676 $ 4,097 $ 3,964 $ 14,113 $ 10,987 GAAP operating expenses $ 1,101 $ 1,031 $ 957 $ 4,196 $ 4,140 Stock-based compensation (82 ) (78 ) (50 ) (308 ) (209 ) Restructure and asset impairments (5 ) — (22 ) (48 ) (488 ) Patent license charges — — — — (128 ) Other — — 6 (8 ) 5 Non-GAAP operating expenses $ 1,014 $ 953 $ 891 $ 3,832 $ 3,320 GAAP operating income $ 1,521 $ 3,004 $ 2,955 $ 9,702 $ 6,283 Stock-based compensation 131 135 93 501 395 Inventory accounting policy change to FIFO — — — — 133 Change in inventory cost absorption — — — — 160 3D XPoint inventory write-down — — — — 49 Restructure and asset impairments 5 — 22 48 488 Patent license charges — — — — 128 Other 5 5 3 30 31 Non-GAAP operating income $ 1,662 $ 3,144 $ 3,073 $ 10,281 $ 7,667 GAAP net income $ 1,492 $ 2,626 $ 2,720 $ 8,687 $ 5,861 Stock-based compensation 131 135 93 501 395 Inventory accounting policy change to FIFO — — — — 133 Change in inventory cost absorption — — — — 160 3D XPoint inventory write-down — — — — 49 Restructure and asset impairments 5 — 22 48 488 Patent license charges — — — — 128 Amortization of debt discount 6 8 8 31 30 (Gain) loss on debt repurchases and conversions — — — 83 1 Other 5 5 3 30 31 Impact of Idaho income tax reform — 189 — 189 — Estimated tax effects of above and other tax adjustments (18 ) (24 ) (68 ) (94 ) (300 ) Non-GAAP net income $ 1,621 $ 2,939 $ 2,778 $ 9,475 $ 6,976 GAAP weighted-average common shares outstanding - Diluted 1,106 1,121 1,138 1,122 1,141 Adjustment for stock-based compensation 15 15 9 13 10 Non-GAAP weighted-average common shares outstanding - Diluted 1,121 1,136 1,147 1,135 1,151 GAAP diluted earnings per share $ 1.35 $ 2.34 $ 2.39 $ 7.75 $ 5.14 Effects of the above adjustments 0.10 0.25 0.03 0.60 0.92 Non-GAAP diluted earnings per share $ 1.45 $ 2.59 $ 2.42 $ 8.35 $ 6.06 RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
4th Qtr. 3rd Qtr. 4th Qtr. Year Ended September 1,
2022June 2,
2022September 2,
2021September 1,
2022September 2,
2021GAAP net cash provided by operating activities $ 3,777 $ 3,838 $ 3,884 $ 15,181 $ 12,468 Expenditures for property, plant, and equipment (3,613 ) (2,578 ) (2,015 ) (12,067 ) (10,030 ) Proceeds from sales of property, plant, and equipment 30 39 4 117 108 Payments on equipment purchase contracts (9 ) (27 ) (156 ) (141 ) (295 ) Amounts funded by partners 11 38 160 115 502 Investments in capital expenditures, net (3,581 ) (2,528 ) (2,007 ) (11,976 ) (9,715 ) Adjusted free cash flow $ 196 $ 1,310 $ 1,877 $ 3,205 $ 2,753 As of September 1,
2022June 2,
2022September 2,
2021Cash and short-term investments $ 9,331 $ 10,227 $ 8,633 Current and noncurrent restricted cash 77 104 66 Long-term marketable investments 1,647 1,646 1,765 Current and long-term debt (6,906 ) (6,963 ) (6,776 ) Net cash $ 4,149 $ 5,014 $ 3,688 The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income, net income, diluted shares, diluted earnings per share, adjusted free cash flow, and net cash. 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 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 and patent license charges;
- Restructure and asset impairments;
- Amortization of debt discount;
- Gains and losses from debt repurchases and conversions;
- Gains and losses from business acquisition activities;
- Initial impact of inventory accounting policy change to FIFO and change in inventory cost absorption in the second quarter of 2021; 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.
MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOKFQ1-23 GAAP Outlook Adjustments Non-GAAP Outlook Revenue $4.25 billion ± $250 million — $4.25 billion ± $250 million Gross margin 25.0% ± 2.0% 1% A 26.0% ± 2.0% Operating expenses $1.09 billion ± $25 million $91 million B $1.00 billion ± $25 million Diluted earnings (loss) per share(1) ($0.09) ± $0.10 $0.13 A, B, C $0.04 ± $0.10 Non-GAAP Adjustments
(in millions)A Stock-based compensation – cost of goods sold $ 33 A Other – cost of goods sold 3 B Stock-based compensation – research and development 52 B Stock-based compensation – sales, general, and administrative 39 C Tax effects of the above items and other tax adjustments 14 $ 141 (1) GAAP earnings per share based on approximately 1.10 billion diluted shares and non-GAAP earnings per share based on approximately 1.12 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, 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
