DGAP-News: Micron Technology, Inc., Reports Results for the Third Quarter of Fiscal 2011
ID: 429703
23.06.2011 22:12
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BOISE, Idaho, June 23, 2011 (GLOBE NEWSWIRE) -- Micron Technology, Inc.,
(Nasdaq:MU) today announced results of operations for its third quarter of
fiscal 2011, which ended June 2, 2011. For the third quarter, the company had
net income attributable to Micron shareholders of $75 million, or $0.07 per
diluted share, on net sales of $2.1 billion.
The company's consolidated gross margin improved to 22 percent for the third
quarter of fiscal 2011 from 19 percent for the second quarter of fiscal 2011
due primarily to decreases in manufacturing costs. Revenue from sales of DRAM
products was 7 percent lower in the third quarter of fiscal 2011 compared to
the second quarter of fiscal 2011 due to a decrease in sales volume. Revenue
from sales of NAND Flash products was 5 percent lower in the third quarter of
fiscal 2011 compared to the second quarter of fiscal 2011 due to a 5 percent
decrease in average selling prices. Sales of NOR Flash products were
approximately 17 percent of total net sales for the third quarter of fiscal
2011.
Cash flows from operations for the third quarter of fiscal 2011 were $589
million. During the third quarter of fiscal 2011, the company invested $534
million in capital expenditures. In addition, during the third quarter, the
company paid down $327 million of debt and ended the quarter with cash and
short-term investments of $2.4 billion.
The company will host a conference call today at 2:30 p.m. MDT to discuss its
financial results. The call, audio and slides will be available online at
http://investors.micron.com/events.cfm. A webcast replay will be available on
the company's web site until June 23, 2012. A taped audio replay of the
conference call will also be available at (706) 645-9291 (conference ID:
76907886) beginning at 5:30 p.m. MDT today and continuing until 5:30 p.m. MDT
on Thursday, June 30, 2011.
Micron Technology, Inc., is one of the world's leading providers of advanced
semiconductor solutions. Through its worldwide operations, Micron manufactures
and markets a full range of DRAM, NAND Flash and NOR Flash memory, as well as
other innovative memory technologies, packaging solutions and semiconductor
systems for use in leading-edge computing, consumer, networking, embedded and
mobile products. Micron's common stock is traded on the NASDAQ under the MU
symbol. To learn more about Micron Technology, Inc., visit www.micron.com.
MICRON TECHNOLOGY, INC.
CONSOLIDATED FINANCIAL SUMMARY
(in millions except per share amounts)
Nine Months
Ended
3rd Qtr. 2nd Qtr. 3rd Qtr. Jun. 2, Jun. 3,
Jun. 2, Mar. 3, Jun. 3, 2011 2010
2011 2011 2010
-----------------------------------------------Net sales $2,139 $2,257 $2,288 $6,648 $5,989
Cost of goods sold 1,661 1,822 1,440 5,211 4,056
-----------------------------------------------
Gross margin 478 435 848 1,437 1,933
Selling, general and 151 146 190 437 387
administrative
Research and development 211 186 142 582 427
Other operating (income) (121) (76) (24) (388) (37)
expense, net (1)
-----------------------------------------------
Operating income 237 179 540 806 1,156
Gain from acquisition of Numonyx -- -- 437 -- 437
(2)
Interest income (expense), net (22) (21) (40) (73) (129)
Other non-operating income 10 -- 1 (104) 56
(expense), net (3)
Income tax (provision) benefit (104) (35) 41 (187) 44
(2)(4)
Equity in net income (losses) of (44) (48) (19) (118) (23)
equity method investees
Net (income) loss attributable (2) (3) (21) (22) (33)
to noncontrolling interests
-----------------------------------------------
Net income attributable to $75 $72 $939 $302 $1,508
Micron
===============================================
Earnings per share:
Basic $0.07 $0.07 $1.06 $0.31 $1.75
Diluted 0.07 0.07 0.92 0.30 1.55
Number of shares used in per
share calculations:
Basic 998.9 988.1 885.4 986.6 860.0
Diluted 1,041.7 1,037.3 1,049.4 1,036.9 1,019.7
CONSOLIDATED FINANCIAL SUMMARY, Continued
As of
Jun. 2, Mar. 3, Sep. 2,
2011 2011 2010
--------------------------
Cash and short-term investments $2,395 $2,184 $2,913
Receivables 1,495 1,393 1,531
Inventories 2,068 1,957 1,770
Total current assets 6,045 5,654 6,333
Property, plant and equipment, net 7,103 7,055 6,601
Total assets 14,570 14,398 14,693
Accounts payable and accrued expenses 1,912 1,815 1,509
Current portion of long-term debt 184 420 712
Total current liabilities 2,588 2,590 2,702
Long-term debt (3) 1,388 1,320 1,648
Total Micron shareholders' equity 8,583 8,462 8,020
Noncontrolling interests in subsidiaries (5) 1,449 1,500 1,796
Total equity 10,032 9,962 9,816
Nine Months
Ended
Jun. 2, Jun. 3,
2011 2010
------------------
Net cash provided by operating activities $2,130 $2,019
Net cash used for investing activities (1,372) (219)
Net cash used for financing activities (1,276) (972)
Depreciation and amortization 1,592 1,474
Expenditures for property, plant and equipment (1,682) (269)
Payments on equipment purchase contracts (262) (199)
Net distributions to noncontrolling interests (151) (220)
Noncash equipment acquisitions on contracts payable 422 281
and capital leases
(1) Other operating (income) expense consisted of the following:
Nine Months
Ended
3rd Qtr. 2nd Qtr. 3rd Qtr. Jun. 2, Jun. 3,
Jun. 2, Mar. 3, Jun. 3, 2011 2010
2011 2011 2010
-----------------------------------------------
Gain on sale of Japan facility $ (54) $ -- $ -- $ (54) $ --
Samsung patent cross-license (35) (40) -- (275) --
agreement
Restructure (12) (17) (5) (25) (7)
(Gain) loss on disposition of (7) (16) (1) (23) (10)
property, plant and equipment
(Gain) loss from changes in (1) -- 1 6 20
currency exchange rates
Other (12) (3) (19) (17) (40)
-----------------------------------------------
$ (121) $ (76) $ (24) $ (388) $ (37)
===============================================
During the third quarter of fiscal 2011, the company completed the sale of its
wafer fabrication facility in Japan to Tower Semiconductor Ltd. ('TowerJazz').
In connection therewith, the company entered into a supply agreement with
TowerJazz to manufacture products for the company in the Japan facility for
approximately three years. Other operating income in the third quarter of
fiscal 2011 included a $54 million gain from the sale. In addition, income tax
provision in the third quarter of fiscal 2011 included a charge of $74 million
to write down certain tax assets as a result of the transaction.
In the first quarter of fiscal 2011, the company entered into a 10-year patent
cross-license agreement with Samsung Electronics Co. Ltd. ('Samsung'). Under
the agreement, Samsung agreed to pay the company $275 million, of which the
company received $200 million, $40 million and $35 million in the first, second
and third quarters, respectively, of fiscal 2011. The license is a
life-of-patents license for existing patents and applications, and a 10-year
term license for all other patents.
Other operating income in the third quarter of fiscal 2011 also included $8
million of receipts from the U.S. government in connection with anti-dumping
tariffs. Other operating income in the third quarter and first nine months of
fiscal 2010 includes $16 million and $24 million, respectively, of grant income
related to the company's operations in China. Other operating income in the
first nine months of fiscal 2010 included $11 million of receipts from the U.S.
government in connection with anti-dumping tariffs.
(2) During the third quarter of fiscal 2010, the company acquired Numonyx
Holdings B.V. ('Numonyx'), which manufactured and sold primarily NOR Flash and
NAND Flash memory products. The total fair value of the consideration paid for
Numonyx was $1,112 million and consisted of 137.7 million shares of the
company's common stock issued to the Numonyx shareholders and 4.8 million
restricted stock units issued to employees of Numonyx. In connection with the
acquisition, the company recorded net assets of $1,549 million. Because the
fair value of the net assets acquired exceeded the purchase price, the company
recognized a gain on the acquisition of $437 million in the third quarter of
2010. In addition, the company recognized a $51 million income tax benefit in
connection with the acquisition.
(3) During the first quarter of fiscal 2011, the company entered into separate
privately negotiated purchase and exchange agreements under which it
repurchased $91 million in principal amount of its 4.25% Convertible Senior
Notes due 2013 (the '2013 Notes'), repurchased $176 million in principal amount
of its 1.875% Convertible Senior Notes due 2014 (the '2014 Notes') and
exchanged $175 million of the Existing 1.875% Notes for $175 million in
aggregate principal amount of new 1.875% Convertible Senior Notes due 2027 (the
'2027 Notes').
The 2027 Notes are convertible under certain circumstances, at the holder's
option, at an initial conversion rate of 91.7431 common shares per $1,000
principal amount. Upon conversion, holders will receive cash up to the
principal amount, and any excess value will be delivered, at the company's
election, in cash, common stock or a combination of cash and common stock.
Holders of the 2027 Notes have an option to require the company to purchase the
notes on June 1, 2017, and in certain other circumstances, at a price equal to
100 percent of the principal amount of notes plus accrued and unpaid interest.
In connection with the repurchase transactions, the aggregate carrying amount
of debt (including unamortized discount and issuance costs) of $232 million was
redeemed for $328 million in cash (including fees). As a result of the
repurchase transactions and the effect of the exchange, the company recognized
a non-operating loss of $111 million in the first quarter of fiscal 2011.
Other non-operating income in the third quarter of fiscal 2011 included $15
million in connection with the release of the company's guarantee of certain
debt. Other non-operating income in the first nine months of fiscal 2010
included a gain of $56 million recognized in the first quarter in connection
with the August 2009 issuance of common shares in a public offering by Inotera
Memories, Inc. ('Inotera') - an investment accounted for by the company under
the equity method. As a result of, and at the time of the issuance, the
company's interest in Inotera decreased from 35.5% to 29.8%.
(4) Income tax provision in the thirdquarter of fiscal 2011 included a charge
of $74 million to write down certain tax assets as a result of the TowerJazz
transaction. Income tax provision in the second quarter of fiscal 2011 included
a charge to reduce net deferred tax assets by $19 million in connection with a
change in tax rates. Income tax provision in the first nine months of fiscal
2011 included charges aggregating $45 million in connection with the Samsung
cross-license agreement. Income taxes in the third quarter and first nine
months of fiscal 2010 included a $51 million benefit recorded in connection
with the Numonyx acquisition. Remaining taxes in fiscal 2011 and 2010 primarily
reflected taxes on the company's non-U.S. operations and U.S. alternative
minimum tax. The company has a valuation allowance for a substantial portion of
its net deferred tax assets associated with its U.S. operations. Taxes
attributable to U.S. operations in fiscal 2011 and 2010 were substantially
offset by changes in the valuation allowance.
(5) During the second quarter of fiscal 2011, the company acquired
Hewlett-Packard Singapore (Private) Limited's interest in TECH Semiconductor
Singapore Pte. Ltd., ('TECH'), a consolidated joint venture of the company, for
$38 million. Additionally, during the second quarter, the company acquired
Canon Inc.'s interest in TECH for $121 million. In connection therewith,
noncontrolling interests in subsidiaries decreased by $226 million and
additional capital increased by $67 million. As a result of these transactions,
the company's ownership interest in TECH increased during the second quarter of
2011 from 87% to 100%.
The Micron Technology, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6950
CONTACT: Kipp A. Bedard
Investor Relations
kbedard@micron.com
(208) 368-4465
Daniel Francisco
Media Relations
dfrancisco@micron.com
(208) 368-5584
News Source: NASDAQ OMX
23.06.2011 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: Micron Technology, Inc.
United States
Phone:
Fax:
E-mail:
Internet:
ISIN: US5951121038
WKN:
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News-ID 429703
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