DGAP-News: Micron Technology, Inc., Reports Results for the Fourth Quarter and 2012 Fiscal Year
(firmenpresse) - Micron Technology, Inc.
27.09.2012 22:19
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BOISE, Idaho, 2012-09-27 22:19 CEST (GLOBE NEWSWIRE) --
Micron Technology, Inc., (Nasdaq:MU) today announced results of operations for
its fourth quarter and 2012 fiscal year, which ended August 30, 2012. For the
fourth quarter, the company had a net loss attributable to Micron shareholders
of $243 million, or $0.24 per diluted share, on net sales of $2.0 billion. The
results for the fourth quarter of fiscal 2012 compare to a net loss of $320
million, or $0.32 per diluted share, on net sales of $2.2 billion for the third
quarter of fiscal 2012, and a net loss of $135 million, or $0.14 per diluted
share, on net sales of $2.1 billion for the fourth quarter of fiscal 2011.
For the 2012 fiscal year, the company had a net loss attributable to Micron
shareholders of $1.03 billion, or $1.04 per diluted share, on net sales of $8.2
billion. Cash flows from operations were $2.1 billion for fiscal 2012. The
results for fiscal 2012 compare to net income of $167 million, or $0.17 per
diluted share, on net sales of $8.8 billion for the 2011 fiscal year. Revenues
from sales of NAND Flash products were 14 percent higher in fiscal 2012
compared to fiscal 2011 due to a 106 percent increase in unit sales volume from
the ramp of the IM Flash Singapore wafer fabrication facility partially offset
by a 45 percent decrease in average selling prices. Revenues from sales of DRAM
products were 12 percent lower in fiscal 2012 compared to fiscal 2011 due to a
45 percent decrease in average selling prices, partially offset by a 59 percent
increase in unit sales volumes.
'In 2012, despite difficult market conditions and lower average selling prices,
we continued to execute on our technology and manufacturing roadmaps and moved
our products increasingly into premium segments. Our focus throughout 2013 is
to drive additional cost reductions and advance our leading-edge memory
technology to achieve increased manufacturing efficiencies,' said Micron CEO
Mark Durcan.
Revenues from sales of NAND Flash products were 12 percent lower in the fourth
quarter of fiscal 2012 compared to the third quarter of fiscal 2012, due to an
11 percent decrease in sales volume. The decrease in sales volume was due
primarily to a one-time increase in volume in the third quarter or fiscal 2012
from the sale of work in process inventories resulting from the restructuring
of the IM Flash joint venture with Intel Corporation. Revenues from sales of
DRAM products in the fourth quarter of fiscal 2012 were 9 percent lower
compared to the third quarter of fiscal 2012 due to a 9 percent decrease in
sales volume. Sales of NOR Flash products were approximately 12 percent of
total net sales for the fourth quarter of fiscal 2012. The company's
consolidated gross margin of 11 percent in the fourth quarter of fiscal 2012
was essentially unchanged from the third quarter of fiscal 2012. Improvements
in margin from sales of NAND Flash and NOR Flash products were offset by
declines in margins from sales of DRAM products.
Cash flows from operations for the fourth quarter of fiscal 2012 were $450
million. During the fourth quarter of fiscal 2012, the company invested $372
million in capital expenditures and ended the quarter with cash and investments
of $2.9 billion. For all of fiscal 2012,the company invested approximately
$1.9 billion in capital expenditures.
The company will host a conference call Thursday, September 27 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 October 4, 2013. A taped audio replay
of the conference call will also be available at (404) 537-3406 (conference
number: 30042409) beginning at 5:30 p.m. MDT, Thursday, September 27, 2012 and
continuing until 5:30 p.m. MDT, Thursday, October 4, 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)
4th Qtr. 3rd Qtr. 4th Qtr. Year Ended
Aug. 30, May 31, Sep. 1, Aug. 30, Sep. 1,
2012 2012 2011 2012 2011
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Net sales $ 1,963 $ 2,172 $ 2,140 $ 8,234 $ 8,788
Cost of goods sold 1,744 1,938 1,819 7,266 7,030
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Gross margin 219 234 321 968 1,758
Selling, general and 139 156 155 620 592
administrative
Research and development 235 231 209 918 791
Other operating (income) (15) 38 8 48 (380)
expense, net (1)
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Operating income (loss) (140) (191) (51) (618) 755
Interest income (expense), net (52) (53) (28) (171) (101)
(2)
Other non-operating income (4) 1 1 35 (103)
(expense), net (3)
Income tax (provision) benefit (14) 38 (16) 17 (203)
(4)
Equity in net losses of equity (32) (115) (40) (294) (158)
method investees (5)
Net income attributable to (1) -- (1) (1) (23)
noncontrolling interests
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Net income (loss) $ (243) $ (320) $ (135) $ (1,032) $ 167
attributable to Micron
-------------------------------------------------Earnings (loss) per share:
Basic $ (0.24) $ (0.32) $ (0.14) $ (1.04) $ 0.17
Diluted (0.24) (0.32) (0.14) (1.04) 0.17
Number of shares used in per
share calculations:
Basic 1,013.1 987.3 992.2 991.2 988.0
Diluted 1,013.1 987.3 992.2 991.2 1,007.5
CONSOLIDATED FINANCIAL SUMMARY, Continued
As of
Aug. 30, May 31, Sep. 1,
2012 2012 2011
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Cash and short-term investments $ 2,559 $ 2,325 $ 2,160
Receivables 1,289 1,333 1,497
Inventories 1,812 1,894 2,080
Total current assets 5,758 5,630 5,832
Long-term marketable investments 374 361 52
Property, plant and equipment, net 7,103 7,158 7,555
Total assets 14,328 14,316 14,752
Accounts payable and accrued expenses 1,641 1,547 1,830
Current portion of long-term debt 224 262 140
Total current liabilities 2,243 2,177 2,480
Long-term debt (2) 3,038 2,936 1,861
Total Micron shareholders' equity 7,700 7,811 8,470
Noncontrolling interests in subsidiaries (6) 717 675 1,382
Total equity 8,417 8,486 9,852
Year Ended
Aug. 30, Sep. 1,
2012 2011
------------------
Net cash provided by operating activities $ 2,114 $ 2,484
Net cash used for investing activities (2,312) (2,042)
Net cash provided by (used for) financing activities 497 (1,195)
Depreciation and amortization 2,222 2,162
Expenditures for property, plant and equipment (1,699) (2,550)
Payments on equipment purchase contracts (172) (322)
Net contributions from (distributions to/acquisitions of) (660) (376)
noncontrolling interests
Noncash equipment acquisitions on contracts payableand 897 469
capital leases
(1) Other operating (income) expense consisted of the following:
4th 3rd 4th Year Ended
Qtr. Qtr. Qtr.
Aug. May Sep. Aug. Sep. 1,
30, 31, 1, 30,
2012 2012 2011 2012 2011
----------------------------------------
(Gain) loss from changes in currency $ (8) $ 1 $ -- $ 6 $ 6
exchange rates
(Gain) loss on disposition of property, (5) 4 6 5 (17)
plant and equipment
Samsung patent cross-license agreement -- -- -- -- (275)
Gain from disposition of Japan Fab -- -- -- -- (54)
Restructure 1 -- 4 7 (21)
Other (3) 33 (2) 30 (19)
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$ (15) $ 38 $ 8 $ 48 $ (380)
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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'). Other
operating income for fiscal 2011 included gains of $275 million for cash
received from Samsung under the agreement. The agreement 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 paid $40 million in cash, approximately 1.3
million ordinary shares of Tower (subsequent to a 1 for 15 reverse stock split
on August 6, 2012), and $20 million in installment payments. The company
recorded a gain of $54 million (net of transaction costs of $3 million) in
connection with the sale of the Japan Fab.
Other operating income in fiscal 2011 included $8 million for receipts from the
U.S. government in connection with anti-dumping tariffs.
(2) In the third quarter of fiscal 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 inceptionand
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.
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.
In the third quarter of fiscal 2012, the company provided a written notice to
redeem the company's 2013 convertible senior notes (the '2013 Notes') on June
4, 2012. In the third quarter of fiscal 2012, $23 million of principal amount
of the 2013 Notes was converted by holders into 4.4 million shares. The
remaining $116 million principal amount was converted by holders into 22.9
million shares in the fourth quarter of fiscal 2012. In connection with the
redemption, the company paid a 'make-whole premium' of $9 million, which was
reflected in interest expense for the third quarter of fiscal 2012.
(3) Other non-operating income for fiscal 2012 included $35 million in net
gains from the disposition of noncurrent equity investments. Other
non-operating income for fiscal 2011 included $15 million for the termination
of the company's debt guarantee obligation recorded in connection with the
acquisition of Numonyx and a $111 million loss recognized 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 full fiscal 2012 included a tax
benefit of $42 million and $56 million, respectively, related to the favorable
resolution of certain prior year tax matters, which were previously reserved as
uncertain tax positions.Income taxes in 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 taxes in fiscal 2011 also included charges of $45 million in connection
with the Samsung license agreement and $19 million to reduce net deferred tax
assets in connection with changes in certain tax rates. Remaining taxes in
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 fiscal 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 in the third
quarter of fiscal 2012 of $69 million.
(6) On April 6, 2012, the company entered into a series of agreements with
Intel Corporation ('Intel') to restructure IM Flash. The company acquired
Intel's remaining 18% interest in IM Flash Singapore, LLP ('IMFS') for $466
million. The company also acquired IMFT's assets located at its Virginia wafer
fabrication facility, for which Intel received a distribution from IMFT of $139
million. Additionally, the company received a $300 million deposit from Intel
which may be applied either to Intel's purchases of NAND Flash under a supply
agreement or, under certain circumstances, refunded. 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. The agreements also
provided for the following:
-- expansion of the scope of the IMFT joint venture to include certain
emerging memory technologies;
-- supply of NAND Flash memory products and certain emerging memory products
to Intel on a cost-plus basis and termination of IMFS's supply agreement
with the company and Intel;
-- extension of IMFT's joint venture agreement through 2024;
-- 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);
-- termination of IMFT's lease to use approximately 50% of the company's
Virginia fabrication facility; and
-- financing of $65 million provided by Intel to the company under a two-year
senior unsecured promissory note, payable with interest in approximately
equal quarterly installments.
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
27.09.2012 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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