DGAP-News: Micron Technology, Inc., Reports Results for the Second Quarter of Fiscal 2012

Micron Technology, Inc.

22.03.2012 21:22
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BOISE, Idaho, 2012-03-22 21:21 CET (GLOBE NEWSWIRE) —
Micron Technology, Inc., (Nasdaq:MU) today announced results of operations for
its second quarter of fiscal 2012, which ended March 1, 2012. For the second
quarter, the company had a net loss attributable to Micron shareholders of $224
million, or $0.23 per diluted share, on net sales of $2.1 billion. The results
for the second quarter of fiscal 2012 compare to a net loss of $187 million, or
$0.19 per diluted share, on net sales of $2.1 billion for the first quarter of
fiscal 2012, and net income of $72 million, or $0.07 per diluted share, on net
sales of $2.3 billion for the second quarter of fiscal 2011.

Revenues from sales of NAND Flash products and DRAM products were slightly
higher in the second quarter of fiscal 2012 compared to the first quarter of
fiscal 2012, due primarily to approximate 20 percent increases in sales volumes
offset by decreases in average selling prices. The company–s consolidated gross
margin declined to 13 percent in the second quarter of fiscal 2012 compared to
15 percent for the first quarter of fiscal 2012, due primarily to declines in
gross margins for the company–s NOR Flash products in the wireless market.
Sales of NOR Flash products were approximately 11 percent of total net sales
for the second quarter of fiscal 2012.

Cash flows from operations for the second quarter of fiscal 2012 were $574
million. During the second quarter of fiscal 2012, the company invested
approximately $429 million in capital expenditures. The company ended the
second quarter with cash and short-term investments of $2.1 billion.

The company will host a conference call Thursday, March 22 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 March 22, 2013. A taped audio replay
of the conference call will also be available at (404) 537-3406 (conference
number: 62533629) beginning at 5:30 p.m. MDT Thursday, March 22, 2012 and
continuing until 5:30 p.m. MDT on Thursday, March 29, 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.

MICRON TECHNOLOGY, INC.
CONSOLIDATED FINANCIAL SUMMARY
(in millions except per share amounts)

2nd Qtr. 1st Qtr. 2nd Qtr. Six Months Ended
Mar. 1, Dec. 1, Mar. 3, Mar. 1, Mar. 3,
2012 2011 2011 2012 2011
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Net sales $ 2,067 $ 2,090 $ 2,257 $ 4,157 $ 4,509
Cost of goods sold 1,799 1,785 1,822 3,584 3,550
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Gross margin 268 305 435 573 959
Selling, general and 174 151 146 325 286
administrative
Research and development 222 230 186 452 371
Other operating (income) 20 6 (76) 26 (267)
expense, net (1)
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Operating income (loss) (148) (82) 179 (230) 569
Interest income (expense), net (33) (33) (21) (66) (51)
Other non-operating income 39 — — 39 (114)
(expense), net (2)
Income tax (provision) benefit (9) 2 (35) (7) (83)
(3)
Equity in net income (losses) (73) (74) (48) (147) (74)
of equity method investees
Net (income) loss attributable — — (3) — (20)
to noncontrolling interests
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Net income (loss) attributable $ (224) $ (187) $ 72 $ (411) $ 227
to Micron
================================================

Earnings (loss) per share:
Basic $ (0.23) $ (0.19) $ 0.07 $ (0.42) $ 0.23
Diluted (0.23) (0.19) 0.07 (0.42) 0.22

Number of shares used in per
share calculations:
Basic 982.8 981.4 988.1 982.1 980.5
Diluted 982.8 981.4 1,037.3 982.1 1,034.5

CONSOLIDATED FINANCIAL SUMMARY, Continued

As of
Mar. 1, Dec. 1, Sep. 1,
2012 2011 2011
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Cash and short-term investments $ 2,094 $ 1,915 $ 2,160
Receivables 1,241 1,383 1,497
Inventories 2,081 2,097 2,080
Total current assets 5,659 5,491 5,832
Property, plant and equipment, net 7,357 7,472 7,555
Total assets 14,139 14,211 14,752Accounts payable and accrued expenses 1,399 1,413 1,830
Current portion of long-term debt 150 146 140
Total current liabilities 2,045 2,021 2,480
Long-term debt 2,165 1,973 1,861

Total Micron shareholders– equity 8,044 8,271 8,470
Noncontrolling interests in subsidiaries 1,373 1,438 1,382
Total equity 9,417 9,709 9,852

Six Months Ended
Mar. 1, Mar. 3,
2012 2011
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Net cash provided by operating activities $ 978 $ 1,541
Net cash used for investing activities (1,183) (1,238)
Net cash provided by (used for) financing activities 139 (1,032)

Depreciation and amortization 1,167 1,033
Expenditures for property, plant and equipment (1,089) (1,189)
Payments on equipment purchase contracts (86) (221)
Net contributions from (distributions to) (9) (95)
noncontrolling interests

Noncash equipment acquisitions on contracts payable 533 187
and capital leases

(1) Other operating (income) expense consisted of the following:

2nd Qtr. 1st Qtr. 2nd Qtr. Six Months Ended
Mar. 1, Dec. 1, Mar. 3, Mar. 1, Mar. 3,
2012 2011 2011 2012 2011
———————————————–

(Gain) loss on disposition of $ 5 $ 1 $ (16) $ 6 $ (16)
property, plant and equipment
(Gain) loss from changes in 2 11 — 13 7
currency exchange rates
Samsung patent cross-license — — (40) — (240)
agreement
Other 13 (6) (20) 7 (18)
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$ 20 $ 6 $ (76) $ 26 $ (267)
===============================================

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 $40
million and $200 million was received in the second quarter and first quarter
of fiscal 2011, respectively. The license is a life-of-patents license for
existing patents and applications, and a 10-year term license for all other
patents.

(2) Other non-operating income in the second quarter of fiscal 2012 includes
$39 million of gains from disposition of noncurrent investments.

During the first quarter of fiscal 2011, in connection with a series of debt
restructure transactions, the company recognized a loss of $111 million as
follows:

— $15 million from the exchange of $175 million in aggregate principal amount
of the company–s 1.875% Convertible Senior Notes due 2014 (the –2014
Notes–) for $175 million in aggregate principal amount of new 1.875%
Convertible Senior Notes due 2027;
— $17 million (including transaction fees) from the repurchase of $176
million in aggregate principal amount of the company–s 2014 Notes for $171
million in cash; and
— $79 million (including transaction fees) from the repurchase of $91 million
in aggregate principal amount of the company–s 4.25% Convertible Senior
Notes due 2013 for $166 million in cash.

(3) Income taxes for the first quarter of fiscal 2012 included a tax benefit
of $14 million related to the favorable resolution of certain prior year tax
matters. 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 second quarter and first six
months of fiscal 2011 included charges of $7 million and $40 million,
respectively, in connection with receipts from Samsung. The company has a
valuation allowance for a substantial portion of its net deferred tax asset
associated with its U.S. operations. Taxes attributable to U.S. operations in
fiscal 2012 and 2011 were substantially offset by changes in the valuation
allowance.

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

22.03.2012 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:

End of Announcement DGAP News-Service

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