DGAP-News: Micron Technology, Inc., Reports Results for the Third Quarter of Fiscal 2012
(firmenpresse) - Micron Technology, Inc.
20.06.2012 22:16
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BOISE, Idaho, 2012-06-20 22:15 CEST (GLOBE NEWSWIRE) --
Micron Technology, Inc., (Nasdaq:MU) today announced results of operations for
its third quarter of fiscal 2012, which ended May 31, 2012. For the third
quarter, the company had a net loss attributable to Micron shareholders of $320
million, or $0.32 per diluted share, on net sales of $2.2 billion. The results
for the third quarter of fiscal 2012 compare to a net loss of $282 million, or
$0.29 per diluted share, on net sales of $2.0 billion for the second quarter of
fiscal 2012, and net income of $75 million, or $0.07 per diluted share, on net
sales of $2.1 billion for the third quarter of fiscal 2011.
Revenues from sales of DRAM products in the third quarter of fiscal 2012 were
20 percent higher due primarily to a 12 percent increase in sales volume and a
7 percent increase in average selling prices compared to the second quarter of
fiscal 2012, which included the adverse impact of a $58 million charge to
revenue. Revenues from sales of NAND Flash products were slightly higher in the
third quarter of fiscal 2012 compared to the second quarter of fiscal 2012, due
primarily to an approximate 40 percent increase in sales volume offset by
decreases in average selling prices. Sales of NOR Flash products were
approximately 10 percent of total net sales for the third quarter of fiscal
2012. The company's consolidated gross margin of 11 percent in the third
quarter of fiscal 2012 was slightly higher than the second quarter of fiscal
2012. Improvements in margins from sales of DRAM and NOR Flash products were
partially offset by declines in margins from sales of NAND Flash products.
Cash flows from operations for the third quarter of fiscal 2012 were $686
million, which included a $300 million customer advance from Intel received in
connection with the company's recently announced expansion of its IM Flash
activities. During the third quarter of fiscal 2012, the company raised
approximately $875 million in convertible debt financing, net of costs
associated with capped call transactions and other costs, and invested
approximately $325 million in capital expenditures. The company ended the third
quarter with cash and investments of $2.7 billion.
The company will host a conference call Wednesday, June 20 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 website until June 27, 2013. A taped audio replay of
the conference call will also be available at (404) 537-3406 (conference
number: 90798592) beginning at 5:30 p.m. MDT Wednesday, June 20, 2012 and
continuing until 5:30 p.m. MDT on Wednesday, June 27, 2012.
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.
The Micron Technology, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6950
MICRON TECHNOLOGY, INC.
CONSOLIDATED FINANCIAL SUMMARY
(in millions except per share amounts)
3rd Qtr. 2nd Qtr. 3rd Qtr. Nine Months Ended
May 31, Mar. 1, Jun. 2, May 31, Jun. 2,
2012 2012 2011 2012 2011
------------------------------------------------
Net sales $ 2,172 $ 2,009 $ 2,139 $ 6,271 $ 6,648
Cost of goods sold 1,938 1,799 1,661 5,522 5,211
------------------------------------------------
Gross margin 234 210 478 749 1,437
Selling, general and 156 174 151 481 437
administrative
Research and development 231 222 211 683 582
Other operating (income) 38 19 (121) 63 (388)
expense, net (1)
------------------------------------------------
Operating income (loss) (191) (205) 237 (478) 806
Interest income (expense), net (53) (33) (22) (119) (73)
(2)
Other non-operating income 1 38 10 39 (104)
(expense), net (3)
Income tax (provision) benefit 38 (9) (104) 31 (187)
(4)
Equity in net income (losses) (115) (73) (44) (262) (118)
of equity method investees (5)
Net (income) loss attributable -- -- (2) -- (22)
to noncontrolling interests
------------------------------------------------
Net income (loss) attributable $ (320) $ (282) $ 75 $ (789) $ 302
to Micron
================================================
Earnings (loss) per share:
Basic $ (0.32) $ (0.29) $ 0.07 $ (0.80) $ 0.31
Diluted (0.32) (0.29) 0.07 (0.80) 0.30
Number of shares used in per
share calculations:
Basic 987.3 982.8 998.9 983.9 986.6
Diluted 987.3 982.8 1,041.7 983.9 1,036.9
CONSOLIDATED FINANCIAL SUMMARY, Continued
As of
May 31, Mar. 1, Sep. 1,2012 2012 2011
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Cash and short-term investments $ 2,325 $ 2,094 $ 2,160
Receivables 1,333 1,241 1,497
Inventories 1,894 2,081 2,080
Total current assets 5,630 5,659 5,832
Property, plant and equipment, net 7,158 7,357 7,555
Total assets 14,316 14,139 14,752
Accounts payable and accrued expenses 1,547 1,457 1,830
Current portion of long-term debt (2) 262 150 140
Total current liabilities 2,177 2,102 2,480
Long-term debt (2) 2,936 2,165 1,861
Total Micron shareholders' equity 7,811 7,986 8,470
Noncontrolling interests in subsidiaries (6) 675 1,373 1,382
Total equity 8,486 9,359 9,852
Nine Months Ended
May 31, Jun. 2,
2012 2011
------------------
Net cash provided by operating activities $ 1,664 $ 2,130
Net cash used for investing activities (1,980) (1,213)
Net cash provided by (used for) financing activities 347 (1,435)
Depreciation and amortization 1,713 1,592
Expenditures for property, plant and equipment (1,367) (1,682)
Payments on equipment purchase contracts (132) (262)
Net contributions from (distributions (702) (310)
to/acquisitions
of) noncontrolling interests
Noncash equipment acquisitions on contracts payable 643 422
and capital leases
(1) Other operating (income) expense consisted of the following:
3rd Qtr. 2nd Qtr. 3rd Qtr. Nine Months Ended
May 31, Mar. 1, Jun. 2, May 31, Jun. 2,
2012 2012 2011 2012 2011
------------------------------------------------
(Gain) loss on disposition of $ 4 $ 5 $ (7) $ 10 $ (23)
property, plant and equipment
(Gain) loss from changes in 1 2 (1) 14 6
currency exchange rates
Gain from disposition of Japan -- -- (54) -- (54)
Fab
Samsung patent cross-license -- -- (35) -- (275)
agreementOther 33 12 (24) 39 (42)
------------------------------------------------
$ 38 $ 19 $ (121) $ 63 $ (388)
================================================
Other operating expense in the third quarter of fiscal 2012 in the table above
includes $17 million from the termination of a lease with IM Flash
Technologies, LLC ('IMFT'), a joint venture of the company, and a charge of $10
million to write off a receivable in connection with resolution of certain
prior year tax matters.
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
which the company received a total of $275 million of cash. For the third
quarter and first nine months of fiscal 2011, other operating income included
gains of $35 million and $275 million, respectively, for cash received from
Samsung under the agreement. The license is a life-of-patents license for
existing patents and applications, and a 10-year term license for all other
patents.
In the third quarter of fiscal 2011, the company sold its wafer fabrication
facility in Japan (the 'Japan Fab') to Tower Semiconductor Ltd. ('Tower').
Under the arrangement, Tower agreed to pay $40 million in cash, approximately
20 million of Tower ordinary shares, and $20 million in installment payments.
In connection with the transaction, the company recorded a gain of $54 million
(net of transaction costs of $3 million).
(2) On April 18, 2012, the company issued $550 million of 2.375% Convertible
Senior Notes due May 1, 2032 (the '2032C Notes') and $450 million of 3.125%
Convertible Senior Notes due May 1, 2032 (the '2032D Notes' and, together with
the 2032C Notes, the '2032 Notes'). Issuance costs for the 2032 Notes totaled
$21 million. The initial conversion rate for the 2032C Notes is 103.8907 shares
of common stock per $1,000 principal amount, equivalent to an initial
conversion price of approximately $9.63 per share of common stock. The initial
conversion rate for the 2032D Notes is 100.1803 shares of common stock per
$1,000 principal amount, equivalent to an initial conversion price of
approximately $9.98 per share of common stock. Upon the issuance of the 2032
Notes, the company recorded $805 million of debt, $191 million of additional
capital and $17 million of deferred debt issuance costs (included in other
noncurrent assets). The difference between the debt recorded at inception and
the principal amount ($104 million for the 2032C Notes and $92 million for the
2032D Notes) is being accreted to principal through interest expense through
May 2019 for the 2032C Notes and May 2021 for the 2032D Notes, the expected
life of the notes.
In the third quarter of fiscal 2012, the company called for redemption of its
2013 convertible senior notes (the '2013 Notes') written notice of redemption
on June 4, 2012. Through May 31, 2012, $23 million of principal amount of the
2013 Notes had been converted by holders into 4.4 million shares. The remaining
$116 million principal amount was converted by holders into 22.9 million shares
in June 2012. The company was required to pay a 'make-whole premium' of $9
million, which is reflected in interest expense for the third quarter of fiscal
2012, to holders of the 2013 Notes who converted their 2013 Notes in connection
with the call for redemption.
Concurrent with the offering of the 2032C and 2032D Notes, the company entered
into capped call transactions (the '2012C Capped Calls' and '2012D Capped
Calls') that have an initial strike price of approximately $9.80 and $10.16 per
share, respectively, subject to certain adjustments, which was set to be
slightly higher than the initial conversion prices of the 2032C Notes and 2032D
Notes. The 2012C and 2012D Capped Calls have cap prices that range from
approximately $14.26 per share to $16.04 per share. The 2012C and 2012D Capped
Calls are intended to reduce the potential dilution upon conversion of the
2032C and 2032D Notes. The 2012C and 2012D Capped Calls are considered capital
transactions and the related cost of $103 million was recorded as a charge to
additional capital.
(3) Other non-operating income for the second quarter of fiscal 2012 included
$39 million in net gains from the disposition of noncurrent equity investments.
Other non-operating income for the third quarter of fiscal 2011 included $15
million for the termination of the company's debt guarantee obligation recorded
in connection with the acquisition of Numonyx in the third quarter of fiscal
2010. Other non-operating expense for the first nine months of fiscal 2011
included a $111 million loss recognized in the first quarter of fiscal 2011 in
connection with a series of debt restructure transactions with certain holders
of the company's convertible notes.
(4) Income taxes for the third quarter and first nine months of 2012 included
a tax benefit of $42 million and $56 million, respectively, related to the
favorable resolution of certain prior year tax matters, which was previously
reserved as an uncertain tax position. Income tax provision in the third
quarter of fiscal 2011 included a net charge of $74 million, of which $27
million was related to the gain on the disposition of the Japan Fab and $47
million was to record a valuation allowance against certain remaining deferred
tax assets at the company's Japanese subsidiary. Income tax provision in the
third quarter and first nine months of fiscal 2011 included charges of $5
million and $45 million, respectively, in connection with the Samsung
agreement. Income taxes for the second quarter of fiscal 2011 included a charge
to reduce net deferred tax assets by $19 million in connection with a change in
certain tax rates. Remaining taxes in the third quarter and first nine months
of fiscal 2012 and 2011 primarily reflect taxes on the company's non-U.S.
operations. The company has a valuation allowance for its net deferred tax
asset associated with its U.S. operations. Taxes attributable to the company's
U.S. operations in the third quarter and first nine months of 2012 and 2011
were substantially offset by changes in the valuation allowance.
(5) As a result of the ongoing challenging global environment in the solar
industry and unfavorable worldwide supply and demand conditions, on May 25,
2012, the Board of Directors of Transform Solar Pty Ltd. ('Transform'), an
equity method investment of the company, approved a liquidation plan. As a
result of the liquidation plan, the company recognized a charge of $69 million
and its investment balance in Transform was reduced to zero.
(6) On February 27, 2012, the company entered into agreements with Intel
relating to its IM Flash Singapore, LLP ('IMFS') and IMFT joint ventures. The
transactions contemplated by such agreements became effective on April 6, 2012.
In connection therewith, the company acquired Intel's 18 percent interest in
IMFS and the assets of IMFT located at the company's Virginia wafer fabrication
facility. As a result, Intel received distributions of aggregating
approximately $600 million. Additionally, Intel deposited $300 million with the
company to be applied to Intel's future purchases of NAND Flash products under
a NAND Flash supply agreement or, under certain circumstances, to be refunded.
The agreements also provided for the following:
-- expansion of the scope of the IMFT joint venture to include certain
emerging memory technologies;
-- new agreements under which the company will supply NAND Flash memory
products and certain emerging memory products to Intel on a cost-plus
basis, and a termination of IMFS's supply agreement with the company and
Intel;
-- extension of IMFT's joint venture agreement through 2024; and
-- certain buy-sell rights, commencing in 2015, pursuant to which Intel may
elect to sell to the company, or the company may elect to purchase from
Intel, Intel's interest in IMFT (if Intel so elects, the company would set
the closing date of the transaction within two years following such
election and could elect to receive financing from Intel for one to two
years).
In connection with purchasing the IMFT assets located in Virginia, the company
terminated IMFT's lease to use approximately 50 percent of the Virginia
fabrication facility. As a result, other operating expense included a charge of
$17 million in the third quarter of fiscal 2012.
The company also entered into a senior unsecured promissory note with Intel.
Under the terms of the note, the company borrowed $65 million, payable with
interest in approximately equal quarterly installments over two years.
The company and Intel will continue to share output of IMFT and certain
research and development costs generally in proportion to their investments in
IMFT.
CONTACT: Kipp A. Bedard
Investor Relations
kbedard(at)micron.com
(208) 368-4465
Daniel Francisco
Media Relations
dfrancisco(at)micron.com
(208) 368-5584
News Source: NASDAQ OMX
20.06.2012 Dissemination of a Corporate News, transmitted by DGAP -
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Language: English
Company: Micron Technology, Inc.
United States
Phone:
Fax:
E-mail:
Internet:
ISIN: US5951121038
WKN:
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