DGAP-News: Micron Technology, Inc., Reports Results for the Fourth Quarter of Fiscal 2013
(firmenpresse) - Micron Technology, Inc.
10.10.2013 22:19
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BOISE, Idaho, 2013-10-10 22:18 CEST (GLOBE NEWSWIRE) --
Micron Technology, Inc., (Nasdaq:MU) today announced results of operations for
its fourth quarter and 2013 fiscal year, which ended August 29, 2013. For the
fourth quarter, the company had net income attributable to Micron shareholders
of $1.71 billion, or $1.51 per diluted share, on net sales of $2.8 billion. The
results for the fourth quarter of fiscal 2013 compare to net income of $43
million, or $0.04 per diluted share, on net sales of $2.3 billion for the third
quarter of fiscal 2013, and a net loss of $243 million, or ($0.24) per diluted
share, on net sales of $2.0 billion for the fourth quarter of fiscal 2012. For
the 2013 fiscal year, the company had net income attributable to Micron
shareholders of $1.19 billion, or $1.13 per diluted share, on net sales of $9.1
billion. Cash flows from operations were $1.8 billion for fiscal 2013. The
results for fiscal 2013 compare to a net loss of $1.03 billion, or ($1.04) per
diluted share, on net sales of $8.2 billion for the 2012 fiscal year.
On July 31, 2013, the company completed its acquisition of Elpida Memory, Inc.
and Rexchip Electronics Corporation. The company's results for the fourth
quarter of fiscal 2013 include $1,484 million, or $1.31 per diluted share, in
purchase accounting gains relating to the acquisition and the results of
operations of Elpida for the month of August.
'Micron is executing well on multiple fronts with the successful integration of
Elpida and ongoing steady development of advanced memory solutions, including
our hybrid memory cube that began sampling with key customers this quarter and
our second generation family of PCIe enterprise SSD's which recently qualified
at a major OEM,' said Micron CEO Mark Durcan. 'Our product portfolio and
systems solutions position us well to compete in the current favorable market
environment.'
Revenues from sales of DRAM products in the fourth quarter of fiscal 2013 were
50 percent higher compared to the third quarter due to a 42 percent increase in
sales volume and a 5 percent increase in average selling prices. Revenues from
sales of NAND Flash products were 5 percent higher in the fourth quarter of
fiscal 2013 compared to the third quarter primarily due to a 17 percent
increase in sales volume offset by an 11 percent decrease in average selling
prices.
The company's consolidated gross margin improved to 25 percent in the fourth
quarter of fiscal 2013 compared to 24 percent in the third quarter of fiscal
2013. Gross margins for DRAM benefitted from the improved average selling
prices. Gross margins for NAND Flash products were unchanged as an 11 percent
improvement in manufacturing costs was offset by the decrease in average
selling prices.
Cash flows from operations for the fourth quarter of fiscal 2013 were $717
million, while investments in capital expenditures were $332 million. The
company ended the fourth fiscal quarter with cash and investments of $4.2
billion, which includes $556 million, reflected as current restricted cash, set
aside for payment of the first Elpida creditor installment.
The company will host a conference call Thursday, October 10 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 17, 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: 71010239) beginning at 5:30 p.m. MDT,
Thursday, October 10, 2013 and continuing until 5:30 p.m. MDT, Thursday,
October 17, 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.
MICRON TECHNOLOGY, INC.
CONSOLIDATED FINANCIAL SUMMARY
(in millions except per share amounts)
4th Qtr. 3rd Qtr. 4th Qtr. Year Ended
Aug. 29, May 30, Aug. 30, Aug. 29, Aug. 30,
2013 2013 2012 2013 2012
--------------------------------------------------
Net sales $ 2,843 $ 2,318 $ 1,963 $ 9,073 $ 8,234
Cost of goods sold 2,135 1,762 1,744 7,226 7,266
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Gross margin 708 556 219 1,847 968
Selling, general and 193 127 139 562 620
administrative
Research and development 267 226 235 931 918
Restructure and asset 32 55 (1) 126 10
impairments (1)
Other operating (income) 9 (1) (5) (8) 32
expense, net (2)
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Operating income (loss) 207 149 (149) 236 (612)
Interest income (expense), (58) (52) (52) (217) (171)
net
Gain on acquisition of Elpida 1,484 -- -- 1,484 --
(3)
Other non-operating income 45 (45) 5 (218) 29
(expense), net (4)
Income tax (provision) (5) 1 (14) (8) 17
benefit (5)
Equity in net income (losses) 37 (10) (32) (83) (294)
of equity method investees
Net income attributable to (2) -- (1) (4) (1)
noncontrolling interests
--------------------------------------------------
Net income (loss) $ 1,708 $ 43 $ (243) $ 1,190 $ (1,032)
attributable to Micron
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Earnings(loss) per share:
Basic $ 1.65 $ 0.04 $ (0.24) $ 1.16 $ (1.04)
Diluted 1.51 0.04 (0.24) 1.13 (1.04)
Number of shares used in per
share calculations:
Basic 1,033.2 1,024.0 1,013.1 1,021.7 991.2
Diluted 1,129.4 1,046.6 1,013.1 1,056.3 991.2
CONSOLIDATED FINANCIAL SUMMARY, Continued
As of
Aug. 29, May 30, Aug. 30,
2013 2013 2012
-----------------------------
Cash and short-term investments $ 3,101 $ 2,552 $ 2,559
Receivables 2,329 1,503 1,289
Inventories 2,649 1,732 1,812
Current restricted cash 556 -- --
Total current assets 8,911 5,886 5,758
Long-term marketable investments 499 347 374
Property, plant and equipment, net 7,626 6,830 7,103
Total assets 19,118 14,055 14,328
Accounts payable and accrued expenses 2,115 1,590 1,641
Current portion of long-term debt 1,585 357 224
Total current liabilities 4,125 2,342 2,243
Long-term debt (6) 4,452 3,267 3,038
Total Micron shareholders' equity 9,142 7,328 7,700
Noncontrolling interests in subsidiaries 864 698 717
Total equity (6) 10,006 8,026 8,417
Year Ended
Aug. 29, Aug. 30,
2013 2012
--------------------
Net cash provided by operating activities $ 1,811 $ 2,114
Net cash used for investing activities (1,712) (2,312)
Net cash provided by financing activities 322 497
Depreciation and amortization 1,926 2,222
Expenditures for property, plant and equipment (1,244) (1,699)
Payments on equipment purchase contracts (214) (172)
Net contributions from (distributions (26) (660)
to/acquisitions of) noncontrolling interests
Noncash equipment acquisitions on contracts 443 897
payable and capital leases
(1) Restructure and asset impairments consisted of the following:
4th Qtr. 3rd Qtr. 4th Qtr. Year EndedAug. 29, May 30, Aug. 30, Aug. 29, Aug. 30,
2013 2013 2012 2013 2012
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Loss from global workforce $ 17 $ -- $ -- $ 17 $ --
reduction
Loss on impairment of Israel 14 -- -- 14 --
assets
Loss on impairment of LED 4 25 -- 33 --
assets
Loss on restructure of -- 26 -- 26 --
consortium agreement
Loss on impairment of MIT -- -- -- 62 --
assets
Gain on termination of -- -- -- (25) --
Transform lease
Other (3) 4 (1) (1) 10
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$ 32 $ 55 $ (1) $ 126 $ 10
=================================================
In order to optimize operations, improve efficiency and increase focus on the
company's core memory operations, the company has initiated various restructure
activities.
In the fourth quarter of fiscal 2013, the company incurred charges in
connection with a global workforce reduction. Separately, the company wrote
down the value of certain assets in connection with its plans to discontinue
200mm production in Israel and exit the facility.
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. In
the third quarter of fiscal 2013, the company also restructured a consortium
agreement, which provides R&D and manufacturing activities to the company, 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. In connection therewith, the company recognized a charge of
$26 million in the third quarter of fiscal 2013.
In the second quarter of fiscal 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 in the
third quarter of fiscal 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 written down to their
estimated fair values and, as a result, the company recorded an impairment loss
of $62 million in the second quarter of fiscal 2013.
(2) Other operating expense in 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) On July 31, 2013, the company completed its acquisition of Elpida Memory,
Inc. ('Elpida'), a Japanese corporation. Elpida's assets include, among others:
a 300mm DRAM wafer fabrication facility located in Hiroshima, Japan; its 65%
ownership interestin Rexchip Electronics Corporation ('Rexchip'), a Taiwanese
corporation and manufacturing joint venture, whose assets include a 300mm DRAM
wafer fabrication facility located in Taiwan; and an assembly and test facility
located in Akita, Japan. Elpida's semiconductor memory products include Mobile
DRAM targeted toward mobile phones and tablets. In a related transaction, on
July 31, 2013, the company completed its acquisition from Powerchip Technology
Corporation and certain of its affiliates (collectively, the 'Powerchip Group')
of an additional 24% interest in Rexchip.
The total purchase price was $949 million and the provisional fair value of the
net assets acquired, net of noncontrolling interests, was $2,433 million. As a
result, the company recorded a gain of $1,484 million in connection with the
acquisition. The provisional fair values of assets and liabilities acquired
include, among other items, cash and restricted cash aggregating $1,618 million
(which includes the company's payment to Elpida of $556 million set aside for
the first Elpida creditor installment), inventories of $962 million; property,
plant and equipment of $935 million; net deferred tax assets of $917 million
and debt of ($2,134) million. The provisional fair values are subject to change
within the one-year measurement period ending in the fourth quarter of fiscal
2014.
(4) Other non-operating income (expense) consisted of the following:
4th Qtr. 3rd Qtr. 4th Qtr. Year Ended
Aug. 29, May 30, Aug. 30, Aug. 29, Aug. 30,
2013 2013 2012 2013 2012
-------------------------------------------------
Gain (loss) from changes in $ 2 $ (45) $ 8 $ (229) $ (6)
currency exchange rates
Gain on Inotera issuance of 48 -- -- 48 --
shares
Loss on extinguishment of debt -- -- -- (31) --
Gain (loss) from investments (4) (1) (4) (5) 35
Other (1) 1 1 (1) --
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$ 45 $ (45) $ 5 $ (218) $ 29
=================================================
Gain (loss) from changes in currency exchange rates in the third quarter and
full fiscal 2013 included currency losses of $47 million and $225 million,
respectively, from changes in the market value of currency hedges executed in
connection with the company's acquisition of Elpida and Rexchip.
Other non-operating income in the fourth quarter of fiscal 2013 includes a gain
of $48 million recognized in connection with the May 2013 issuance of common
shares by Inotera Memories, Inc. As a result of the issuance, the company's
interest in Inotera decreased to 35.5%.
Loss from extinguishment of debt in fiscal 2013 included $31 million recognized
in the second quarter 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 $8 million of gains and $6 million of losses for the fourth
quarter of fiscal 2012 and full fiscal year 2012, respectively, were
reclassified from the amounts previously reported in other operating (income)
expense to other non-operating income (expense).
(5) Income taxes for 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 fiscal 2012 included tax benefits of $56 million
related to the favorable resolution of certain prior year tax matters, which
were previously reserved as uncertain tax position. Remaining taxes for 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 fiscal 2013 and 2012 was substantially offset by changes in
the valuation allowance.
(6) During the fourth quarter of fiscal 2013, the company borrowed $312
million under a four-year note, collateralized by a security interest in
certain production equipment. Principal is payable in equal quarterly
installments, commencing after November, 2013. Interest accrues at a variable
rate equal to the three-month LIBOR rate plus a margin of 3.25% per annum,
payable quarterly in arrears. Also during the fourth quarter of fiscal 2013,
the company entered into a variable-for-fixed interest rate swap calculated on
an aggregate notional amount equal to the scheduled outstanding balance of the
loan. The interest rate swap effectively fixed the rate at 4.2% per annum.
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 '2033 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 2033 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 2033 Capped Calls are intended to
reduce the potential dilution upon conversion of the 2033 Notes. The company
paid $48 million to purchase the 2033 Capped Calls. The 2033 Capped Calls are
considered capital transactions and the related cost was recorded as a charge
to additional capital.
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.
During the first quarter of fiscal 2013, the company entered into two credit
facilities. The first was a three-year revolving credit facility, under which
the company can draw up to $255 million. Amounts drawn would be collateralized
by a security interest in certain accounts receivables. As of August 29, 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 August 29, 2013, the note had been fully drawn and the
outstanding balance was $191 million.
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
10.10.2013 Dissemination of a Corporate News, transmitted by DGAP -
a company of EQS Group 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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