DGAP-News: Micron Technology, Inc., Reports Results for the Third Quarter of Fiscal 2013
(firmenpresse) - Micron Technology, Inc.
19.06.2013 22:18
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BOISE, Idaho, 2013-06-19 22:17 CEST (GLOBE NEWSWIRE) --
Micron Technology, Inc., (Nasdaq:MU) today announced results of operations for
its third quarter of fiscal 2013, which ended May 30, 2013. For the third
quarter, the company had net income attributable to Micron shareholders of $43
million, or $0.04 per diluted share, on net sales of $2.3 billion. The results
for the third quarter of fiscal 2013 compare to a net loss of $286 million, or
($0.28) per diluted share, on net sales of $2.1 billion for the second quarter
of fiscal 2013, and 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.
The company's consolidated gross margin improved to 24 percent in the third
quarter of fiscal 2013 compared to 18 percent in the second quarter of fiscal
2013. Gross margins for both DRAM and NAND Flash products improved due to
increases in average selling prices. DRAM gross margins also benefited from
decreases in manufacturing costs.
Revenues from sales of DRAM products in the third quarter of fiscal 2013 were
23 percent higher compared to the second quarter due to a 16 percent increase
in average selling prices and a 6 percent increase in sales volume. Revenues
from sales of NAND Flash products were 7 percent higher in the third quarter of
fiscal 2013 compared to the second quarter primarily due to an 8 percent
increase in Trade NAND Flash average selling prices.
Cash flows from operations for the third quarter of fiscal 2013 were $624
million, while investments in capital expenditures were $235 million. The
company ended the third fiscal quarter with cash and investments of $2.9
billion.
'As the memory market shows improvement in both DRAM and NAND fundamentals, we
continue to focus our efforts on advancing our operational efficiency,' said
Micron CEO Mark Durcan. 'We have also made progress in securing the necessary
approvals related to the Elpida acquisition and are optimistic we will be able
to close the transaction in our fiscal fourth quarter ending August 29, 2013.'
The company will host a conference call Wednesday, June 19 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 25, 2014. A taped audio replay of
the conference call will also be available at 1-404-537-3406 or 1-855-859-2056
(conference number: 91862727) beginning at 5:30 p.m. MDT, Wednesday, June 19,
2013 and continuing until 5:30 p.m. MDT, Wednesday, June 26, 2013.
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.
This press release contains forward-looking statements regarding future events
that involve risks and uncertainties. For example, statements related to our
expectations regarding the timing of the closing of the Elpida transaction are
forward-looking statements. Various factors, including the possibility that the
conditions to closing are not met, could cause actual events or results to
differ materially from those anticipated by the forward-looking statements.
Please refer to the Risk Factors section of our most recently filed Form 10-K
and Form 10-Q for information on important factors that could cause the actual
results for Micron on a consolidated basis to differ materially from those
contained in our forward-looking statements. 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.
MICRON TECHNOLOGY, INC.
CONSOLIDATED FINANCIAL SUMMARY
(in millions except per share amounts)
3rd Qtr. 2nd Qtr. 3rd Qtr. Nine Months Ended
May 30, Feb. 28, May 31, May 30, May 31,
2013 2013 2012 2013 2012
-------------------------------------------------
Net sales $ 2,318 $ 2,078 $ 2,172 $ 6,230 $ 6,271
Cost of goods sold 1,762 1,712 1,938 5,091 5,522
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Gross margin 556 366 234 1,139 749
Selling, general and 127 123 156 369 481
administrative
Research and development 226 214 231 664 683
Restructure and asset 55 60 5 94 11
impairments (1)
Other operating (income) (1) (8) 30 (17) 37
expense, net (2)
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Operating income (loss) 149 (23) (188) 29 (463)
Interest income (expense), net (52) (53) (53) (159) (119)
Other non-operating income (45) (159) (2) (263) 24
(expense), net (3)
Income tax (provision) benefit 1 9 38 (3) 31
(4)
Equity in net losses of equity (10) (58) (115) (120) (262)
method investees
Net income attributable to -- (2) -- (2) --
noncontrolling interests
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Net income (loss) $ 43 $ (286) $ (320) $ (518) $ (789)
attributable to Micron
=================================================
Earnings (loss) per share:
Basic $ 0.04 $ (0.28) $ (0.32) $ (0.51) $ (0.80)
Diluted 0.04 (0.28) (0.32) (0.51) (0.80)
Number of shares used in per
share calculations:Basic 1,024.0 1,016.0 987.3 1,017.9 983.9
Diluted 1,046.6 1,016.0 987.3 1,017.9 983.9
CONSOLIDATED FINANCIAL SUMMARY, Continued
As of
May 30, Feb. 28, Aug. 30,
2013 2013 2012
------------------------------
Cash and short-term investments $ 2,552 $ 2,228 $ 2,559
Receivables 1,503 1,226 1,289
Inventories 1,732 1,721 1,812
Total current assets 5,886 5,364 5,758
Long-term marketable investments 347 546 374
Property, plant and equipment, net 6,830 6,973 7,103
Total assets 14,055 13,912 14,328
Accounts payable and accrued expenses 1,590 1,498 1,641
Current portion of long-term debt 357 350 224
Total current liabilities 2,342 2,117 2,243
Long-term debt (5)(6) 3,267 3,301 3,038
Total Micron shareholders' equity 7,328 7,231 7,700
Noncontrolling interests in subsidiaries 698 729 717
Total equity (5)(6) 8,026 7,960 8,417
Nine Months Ended
May 30, May 31,
2013 2012
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Net cash provided by operating activities $ 1,094 $ 1,664
Net cash used for investing activities (1,170) (1,980)
Net cash provided by financing activities 57 347
Depreciation and amortization 1,440 1,713
Expenditures for property, plant and equipment (964) (1,367)
Payments on equipment purchase contracts (162) (132)
Net contributions from (distributions to/acquisitions of) (22) (702)
noncontrolling interests
Noncash equipment acquisitions on contracts payable and 387 643
capital leases
(1) Restructure and asset impairments consisted of the following:
3rd Qtr. 2nd Qtr. 3rd Qtr. Nine Months
Ended
May 30, Feb. 28, May 31, May 30, May 31,
2013 2013 2012 2013 2012
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Loss on restructure of $ 26 $ -- $ -- $ 26 $ --
consortium agreement
Loss on impairment of LED assets 25 1 -- 29 --
Loss on impairment of MIT assets -- 62 -- 62 --
Gain on termination of Transform -- -- -- (25) --
lease
Other 4 (3) 5 2 11
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$ 55 $ 60 $ 5 $ 94 $ 11
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In the third quarter of fiscal 2013, the company restructured a consortium
agreement with STMicroelectronics S.r.l. ('ST') whereby certain assets and
approximately 500 employees from the company's Agrate, Italy fabrication
facility were transferred to ST. The consortium agreement supports the R&D
activities of the company and ST and the manufacturing of semi-finished and
advanced commercial semiconductor devices. In connection therewith, the company
recognized a charge of $26 million in the third quarter of fiscal 2013.
In the third quarter of fiscal 2013, the company discontinued the development
activities of its Light-emitting Diode ('LED') operations. In connection
therewith, the company recognized a charge of $25 million primarily to write
down certain production assets used in the development of LED technology.
On February 25, 2013, the company entered into an agreement to sell Micron
Technology Italia, S.r.l. ('MIT'), a wholly-owned subsidiary, including its 200
millimeter wafer fabrication facility assets in Avezzano, Italy, to LFoundry
Marsica S.r.l. ('LFoundry'). The transaction closed on May 3, 2013. In exchange
for the shares of MIT, the company received a long-term note from LFoundry.
Under the terms of the agreements, the company assigned to LFoundry its supply
agreement with Aptina Imaging Corporation ('Aptina') for CMOS image sensors
manufactured at the Avezzano facility. The assets and liabilities of MIT were
classified as held for sale in the second quarter of fiscal 2013 and were
written down to their estimated fair values. As a result, in the second quarter
of fiscal 2013, the company recorded an impairment loss of $62 million.
(2) Other operating (income) expense consisted of the following:
3rd Qtr. 2nd Qtr. 3rd Qtr. Nine Months
Ended
May 30, Feb. 28, May 31, May 30, May 31,
2013 2013 2012 2013 2012
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(Gain) loss on disposition of $ 5 $ (10) $ 4 $ (10) $ 10
property, plant and equipment
Other (6) 2 26 (7) 27
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$ (1) $ (8) $ 30 $ (17) $ 37
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Other operating expense in the third quarter of fiscal 2012 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.
(3) Other non-operating income (expense) consisted of the following:
3rd Qtr. 2nd Qtr. 3rd Qtr. Nine Months
Ended
May 30, Feb. 28, May 31, May 30, May 31,
2013 2013 2012 2013 2012
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Gain (loss) from changes in $ (45) $ (127) $ (1) $ (231) $ (14)
currency exchange rates
Loss on extinguishment of debt -- (31) -- (31) --
Gain from disposition of (1) -- -- (1) 39
investments
Other 1 (1) (1) -- (1)
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$ (45) $ (159) $ (2) $ (263) $ 24
===============================================
Gain (loss) from changes in currency exchange rates in the third quarter,
second quarter and first nine months of fiscal 2013 included currency losses of
$47 million, $120 million and $225 million, respectively, from changes in the
market value of currency hedges executed in connection with the company's
planned acquisition of Elpida Memory, Inc. and Rexchip Electronics Corporation.
Loss from extinguishment of debt in the second quarter of fiscal 2013 included
$31 million recognized in connection with the partial repurchase of the
company's 2014 Notes.
In order to improve comparability with the company's industry peers, gains and
losses from currency exchange rates have been reclassified from operating to
non-operating. As a result, $59 million of losses for the first quarter of
fiscal 2013 and $1 million and $14 million of losses for the third quarter and
first nine months of fiscal 2012, respectively, were reclassified from the
amounts previously reported in other operating (income) expense to other
non-operating income (expense).
(4) Income taxes for the third quarter of fiscal 2013 included an $8 million
tax benefit related to the sale of non-U.S. assets. Income taxes for the second
quarter of fiscal 2013 included tax benefits related to two non-U.S.
jurisdictions of $10 million for the favorable resolution of certain prior year
tax matters, which was previously reserved as an uncertain tax position, and $9
million for a favorable change in tax law applicable to prior years. Income
taxes for the third quarter and first nine months of fiscal 2012 included tax
benefits of $42 million and $56 million, respectively, related to the favorable
resolution of certain prior year tax matters, which were previously reserved as
an uncertain tax position. Remaining taxes for the third quarters and first
nine months of fiscal 2013 and 2012, respectively, 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. The (provision)
benefit for taxes on U.S. operations in the third quarters and first nine
months of fiscal 2013 and 2012 was substantially offset by changes in the
valuation allowance.
(5) On February 12, 2013, the company issued $300 million of 1.625%
Convertible Senior Notes due February 2033 (the '2033E Notes') and $300 million
of 2.125% Convertible Senior Notes due February 2033 (the '2033F Notes' and
together with the 2033E Notes, the '2033 Notes'). Issuance costs for the 2033
Notes totaled $16 million. The initial conversion rate for the 2033 Notes is
91.4808 shares of common stock per $1,000 principal amount, equivalent to an
initial conversion price of approximately $10.93 per share of common stock.
Upon issuance of the 2033 Notes, the company recorded $526 million of debt, $72
million of additional capital and $14 million of deferred debt issuance costs
(included in other noncurrent assets). The difference between the debt recorded
at inception and the principal amount ($31 million for the 2033E Notes and $43
million for the 2033F Notes) is being accreted to principal as interest expense
through February 2018 for the 2033E Notes and February 2020 for the 2033F
Notes, the expected life of the notes.
Concurrent with the issuance of the 2033 Notes, the company entered into capped
call transactions (the '2013 Capped Calls') that have initial strike prices of
approximately $10.93 per share, subject to certain adjustments, which was set
to equal the initial conversion price of the 2033 Notes. The 2013 Capped Calls
have a cap price of $14.51 per share and cover an approximate combined total of
54.9 million shares of common stock. The 2013 Capped Calls are intended to
reduce the potential dilution upon conversion of the 2033 Notes. The company
paid $48 million to purchase the 2013 Capped Calls. The 2013 Capped Calls are
considered capital transactions and the related cost was recorded as a charge
to additional capital.
During the first quarter of fiscal 2013, the company entered into two credit
facilities. The first was a three-year revolving credit facility. Under this
credit facility, the company can draw up to $255 million. Amounts drawn would
be collateralized by a security interest in certain accounts receivables. As of
May 30, 2013, the company had not drawn any amounts under this facility. The
second was a term note providing for borrowing of up to $214 million. Amounts
drawn are payable in 10 equal semi-annual installments beginning six months
after the draw date. As of the end of the third quarter of fiscal 2013, the
note had been fully drawn and the outstanding balance was $195 million.
(6) In connection with the offering of the 2033 Notes, on February 12, 2013,
the company repurchased $464 million of aggregate principal amount of its
1.875% Convertible Senior Notes due June 2014 (the '2014 Notes') for $477
million. The repurchase resulted in the derecognition of $431 million in debt
for the principal amount (net of $33 million of debt discount) and $15 million
in additional capital. The company recognized a charge of $31 million in the
second quarter of fiscal 2013 associated with the early repurchase.
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
19.06.2013 Dissemination of a Corporate News, transmitted by DGAP -
a company of EQS Group AG.
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Language: English
Company: Micron Technology, Inc.
United States
Phone:
Fax:
E-mail:
Internet:
ISIN: US5951121038
WKN:
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