• Micron Technology, Inc. Reports Results for the Fourth Quarter and Full Year of Fiscal 2023

    Source: Nasdaq GlobeNewswire / 27 Sep 2023 16:01:56   America/New_York

    BOISE, Idaho, Sept. 27, 2023 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its fourth quarter and full year of fiscal 2023, which ended August 31, 2023.

    Fiscal Q4 2023 highlights

    • Revenue of $4.01 billion versus $3.75 billion for the prior quarter and $6.64 billion for the same period last year
    • GAAP net loss of $1.43 billion, or $1.31 per diluted share
    • Non-GAAP net loss of $1.18 billion, or $1.07 per diluted share
    • Operating cash flow of $249 million versus $24 million for the prior quarter and $3.78 billion for the same period last year

    Fiscal 2023 highlights

    • Revenue of $15.54 billion versus $30.76 billion for the prior year
    • GAAP net loss of $5.83 billion, or $5.34 per diluted share
    • Non-GAAP net loss of $4.86 billion, or $4.45 per diluted share
    • Operating cash flow of $1.56 billion versus $15.18 billion for the prior year

    “During fiscal 2023, amid a challenging environment for the memory and storage industry, Micron sustained technology leadership, launched a significant number of leading-edge products, and took decisive actions on supply and cost,” said Micron Technology President and CEO Sanjay Mehrotra. “Our 2023 performance positions us well as a market recovery takes shape in 2024, driven by increasing demand and disciplined supply. We look forward to record industry TAM revenue in 2025 as AI proliferates from the data center to the edge.”

    Quarterly Financial Results
    (in millions, except per share amounts)

    		GAAP(1) Non-GAAP(2)
    FQ4-23FQ3-23FQ4-22 FQ4-23FQ3-23FQ4-22
            
    Revenue$4,010 $3,752 $6,643  $4,010 $3,752 $6,643 
    Gross margin (435) (668) 2,622   (366) (603) 2,676 
    percent of revenue (10.8%) (17.8%) 39.5%  (9.1%) (16.1%) 40.3%
    Operating expenses 1,037  1,093  1,101   842  866  1,014 
    Operating income (loss) (1,472) (1,761) 1,521   (1,208) (1,469) 1,662 
    percent of revenue (36.7%) (46.9%) 22.9%  (30.1%) (39.2%) 25.0%
    Net income (loss) (1,430) (1,896) 1,492   (1,177) (1,565) 1,621 
    Diluted earnings (loss) per share (1.31) (1.73) 1.35   (1.07) (1.43) 1.45 


    Annual Financial Results
    (in millions, except per share amounts)

    		GAAP(1) Non-GAAP(2)
    FY 23FY 22 FY 23FY 22
          
    Revenue$15,540 $30,758  $15,540 $30,758 
    Gross margin (1,416) 13,898   (1,196) 14,113 
    percent of revenue (9.1%) 45.2%  (7.7%) 45.9%
    Operating expenses 4,329  4,196   3,623  3,832 
    Operating income (loss) (5,745) 9,702   (4,819) 10,281 
    percent of revenue (37.0%) 31.5%  (31.0%) 33.4%
    Net income (loss) (5,833) 8,687   (4,862) 9,475 
    Diluted earnings (loss) per share (5.34) 7.75   (4.45) 8.35 
                  

    Investments in capital expenditures, net(2) were $1.01 billion for the fourth quarter of 2023 and $7.01 billion for the full year of 2023, which resulted in adjusted free cash flows(2) of negative $758 million for the fourth quarter of 2023 and negative $5.45 billion for the full year of 2023. Micron ended the year with cash, marketable investments, and restricted cash of $10.52 billion. On September 27, 2023, Micron’s Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on October 25, 2023, to shareholders of record as of the close of business on October 10, 2023.

    Business Outlook

    The following table presents Micron’s guidance for the first quarter of 2024:

    FQ1-24GAAP(1) OutlookNon-GAAP(2) Outlook
       
    Revenue$4.40 billion ± $200 million$4.40 billion ± $200 million
    Gross margin(6.0%) ± 2.0%(4.0%) ± 2.0%
    Operating expenses$1.01 billion ± $15 million$900 million ± $15 million
    Diluted earnings (loss) per share($1.24) ± $0.07($1.07) ± $0.07
       

    Further information regarding Micron’s business outlook is included in the prepared remarks and slides, which have been posted at investors.micron.com.

    Investor Webcast

    Micron will host a conference call on Wednesday, September 27, 2023 at 2:30 p.m. Mountain Time to discuss its fourth quarter financial results and provide forward-looking guidance for its first quarter. A live webcast of the call will be available online at investors.micron.com. A webcast replay will be available for one year after the call. For Investor Relations and other company updates, follow @MicronTech on Twitter at twitter.com/MicronTech.

    About Micron Technology, Inc.

    We are an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND, and NOR memory and storage products through our Micron® and Crucial® brands. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence and 5G applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.

    © 2023 Micron Technology, Inc. All rights reserved. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners.

    Forward-Looking Statements

    This press release contains forward-looking statements regarding our industry, our strategic position, and our financial and operating results. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents we file with the Securities and Exchange Commission, including our most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at micron.com/certainfactors. 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. We are under no duty to update any of the forward-looking statements to conform these statements to actual results.

    (1)GAAP represents U.S. Generally Accepted Accounting Principles.
    (2)Non-GAAP represents GAAP excluding the impact of certain activities, which management excludes in analyzing our operating results and understanding trends in our earnings, adjusted free cash flow, and business outlook. Further information regarding Micron’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release.

       
       


    MICRON TECHNOLOGY, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (In millions, except per share amounts)
    (Unaudited)

     4th Qtr.3rd Qtr.4th Qtr.Year Ended
     August 31,
    2023    		June 1,
    2023    		September 1,
    2022    		August 31,
    2023    		September 1,
    2022
          
    Revenue$4,010 $3,752 $6,643 $15,540 $30,758 
    Cost of goods sold 4,445  4,420  4,021  16,956  16,860 
    Gross margin (435) (668) 2,622  (1,416) 13,898 
          
    Research and development 719  758  839  3,114  3,116 
    Selling, general, and administrative 219  219  280  920  1,066 
    Restructure and asset impairments 4  68  5  171  48 
    Other operating (income) expense, net 95  48  (23) 124  (34)
    Operating income (loss) (1,472) (1,761) 1,521  (5,745) 9,702 
          
    Interest income 134  127  54  468  96 
    Interest expense (129) (119) (45) (388) (189)
    Other non-operating income (expense), net 9  —  23  7  (38)
      (1,458) (1,753) 1,553  (5,658) 9,571 
          
    Income tax (provision) benefit 24  (139) (56) (177) (888)
    Equity in net income (loss) of equity method investees 4  (4) (5) 2  4 
    Net income (loss)$(1,430)$(1,896)$1,492 $(5,833)$8,687 
          
    Earnings (loss) per share     
    Basic$(1.31)$(1.73)$1.36 $(5.34)$7.81 
    Diluted (1.31) (1.73) 1.35  (5.34) 7.75 
          
    Number of shares used in per share calculations     
    Basic 1,095  1,094  1,097  1,093  1,112 
    Diluted 1,095  1,094  1,106  1,093  1,122 
                    

    MICRON TECHNOLOGY, INC.
    CONSOLIDATED BALANCE SHEETS
    (In millions)
    (Unaudited)

    As ofAugust 31,
    2023    		June 1,
    2023    		September 1,
    2022
        
    Assets   
    Cash and equivalents$8,577 $9,298 $8,262 
    Short-term investments 1,017  1,054  1,069 
    Receivables 2,443  2,429  5,130 
    Inventories 8,387  8,238  6,663 
    Other current assets 820  715  657 
    Total current assets 21,244  21,734  21,781 
    Long-term marketable investments 844  973  1,647 
    Property, plant, and equipment 37,928  38,727  38,549 
    Operating lease right-of-use assets 666  655  678 
    Intangible assets 404  410  421 
    Deferred tax assets 756  708  702 
    Goodwill 1,150  1,252  1,228 
    Other noncurrent assets 1,262  1,221  1,277 
    Total assets$64,254 $65,680 $66,283 
        
    Liabilities and equity   
    Accounts payable and accrued expenses$3,958 $4,177 $6,090 
    Current debt 278  259  103 
    Other current liabilities 529  668  1,346 
    Total current liabilities 4,765  5,104  7,539 
    Long-term debt 13,052  12,986  6,803 
    Noncurrent operating lease liabilities 603  603  610 
    Noncurrent unearned government incentives 727  632  589 
    Other noncurrent liabilities 987  950  835 
    Total liabilities 20,134  20,275  16,376 
        
    Commitments and contingencies   
        
    Shareholders’ equity   
    Common stock 124  124  123 
    Additional capital 11,036  10,782  10,197 
    Retained earnings 40,824  42,391  47,274 
    Treasury stock (7,552) (7,552) (7,127)
    Accumulated other comprehensive income (loss) (312) (340) (560)
    Total equity 44,120  45,405  49,907 
    Total liabilities and equity$64,254 $65,680 $66,283 
        

    MICRON TECHNOLOGY, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In millions)
    (Unaudited)

    For the year endedAugust 31,
    2023    		September 1,
    2022
       
    Cash flows from operating activities  
    Net income (loss)$(5,833)$8,687 
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:  
    Depreciation expense and amortization of intangible assets 7,756  7,116 
    Provision to write down inventories to net realizable value 1,831  — 
    Stock-based compensation 596  514 
    Goodwill impairment 101  — 
    Restructure and asset impairments 11  44 
    Loss on debt repurchases and conversions —  83 
    Change in operating assets and liabilities:  
    Receivables 2,763  190 
    Inventories (3,555) (2,179)
    Accounts payable and accrued expenses (2,104) 744 
    Other (7) (18)
    Net cash provided by operating activities 1,559  15,181 
       
    Cash flows from investing activities  
    Expenditures for property, plant, and equipment (7,676) (12,067)
    Purchases of available-for-sale securities (723) (1,770)
    Proceeds from maturities of available-for-sale securities 1,566  1,321 
    Proceeds from government incentives 710  115 
    Proceeds from sales of available-for-sale securities 25  294 
    Proceeds from sale of Lehi, Utah fab —  888 
    Other (93) (366)
    Net cash provided by (used for) investing activities (6,191) (11,585)
       
    Cash flows from financing activities  
    Proceeds from issuance of debt 6,716  2,000 
    Repayments of debt (761) (2,032)
    Payments of dividends to shareholders (504) (461)
    Repurchases of common stock - repurchase program (425) (2,432)
    Payments on equipment purchase contracts (138) (141)
    Other 95  86 
    Net cash provided by (used for) financing activities 4,983  (2,980)
       
    Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash (34) (106)
       
    Net increase (decrease) in cash, cash equivalents, and restricted cash 317  510 
    Cash, cash equivalents, and restricted cash at beginning of period 8,339  7,829 
    Cash, cash equivalents, and restricted cash at end of period$8,656 $8,339 
           

    MICRON TECHNOLOGY, INC.
    NOTES
    (Unaudited)

    Inventories

    In the third and second quarters of 2023, we recorded charges of $401 million and $1.43 billion, respectively, to cost of goods sold to write down the carrying value of work in process and finished goods inventories to their estimated net realizable values (“NRV”). The impact of inventory NRV write-downs for each period reflects (1) inventory write-downs in that period, offset by (2) lower costs in that period on the sale of inventory written down in prior periods. The impacts of inventory NRV write-downs are summarized below:

     4th Qtr.3rd Qtr.4th Qtr.Year Ended
     August 31,
    2023    		June 1,
    2023    		September 1,
    2022    		August 31,
    2023    		September 1,
    2022
          
    Provision to write down inventory to NRV$—$(401)$—$(1,831)$—
    Lower costs from sale of inventory written down in prior periods 563 281  — 844  —
     $563$(120)$—$(987)$—
                 

    MICRON TECHNOLOGY, INC.
    RECONCILIATION OF GAAP TO NON-GAAP MEASURES
    (In millions, except per share amounts)

     4th Qtr.3rd Qtr.4th Qtr.Year Ended
     August 31,
    2023    		June 1,
    2023    		September 1,
    2022    		August 31,
    2023    		September 1,
    2022
          
    GAAP gross margin$(435)$(668)$2,622 $(1,416)$13,898 
    Stock-based compensation 64  60  49  201  193 
    Other 5  5  5  19  22 
    Non-GAAP gross margin$(366)$(603)$2,676 $(1,196)$14,113 
          
    GAAP operating expenses$1,037 $1,093 $1,101 $4,329 $4,196 
    Stock-based compensation (87) (91) (82) (363) (308)
    Restructure and asset impairments (4) (68) (5) (171) (48)
    Goodwill impairment (101) —  —  (101) — 
    Litigation settlement —  (68) —  (68) — 
    Other (3) —  —  (3) (8)
    Non-GAAP operating expenses$842 $866 $1,014 $3,623 $3,832 
          
    GAAP operating income (loss)$(1,472)$(1,761)$1,521 $(5,745)$9,702 
    Stock-based compensation 151  151  131  564  501 
    Restructure and asset impairments 4  68  5  171  48 
    Goodwill impairment 101  —  —  101  — 
    Litigation settlement —  68  —  68  — 
    Other 8  5  5  22  30 
    Non-GAAP operating income (loss)$(1,208)$(1,469)$1,662 $(4,819)$10,281 
          
    GAAP net income (loss)$(1,430)$(1,896)$1,492 $(5,833)$8,687 
    Stock-based compensation 151  151  131  564  501 
    Restructure and asset impairments 4  68  5  171  48 
    Goodwill impairment 101  —  —  101  — 
    Litigation settlement —  68  —  68  — 
    Loss on debt repurchases and conversions —  —  —  —  83 
    Other 7  7  11  32  61 
    Impact of Idaho income tax reform —  —  —  —  189 
    Estimated tax effects of above and other tax adjustments (10) 37  (18) 35  (94)
    Non-GAAP net income (loss)$(1,177)$(1,565)$1,621 $(4,862)$9,475 
          
    GAAP weighted-average common shares outstanding - Diluted 1,095  1,094  1,106  1,093  1,122 
    Adjustment for stock-based compensation —  —  15  —  13 
    Non-GAAP weighted-average common shares outstanding - Diluted 1,095  1,094  1,121  1,093  1,135 
          
    GAAP diluted earnings (loss) per share$(1.31)$(1.73)$1.35 $(5.34)$7.75 
    Effects of the above adjustments 0.24  0.30  0.10  0.89  0.60 
    Non-GAAP diluted earnings (loss) per share$(1.07)$(1.43)$1.45 $(4.45)$8.35 


    RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued

     4th Qtr.3rd Qtr.4th Qtr.Year Ended
     August 31,
    2023    		June 1,
    2023    		September 1,
    2022    		August 31,
    2023    		September 1,
    2022
          
    GAAP net cash provided by operating activities$249 $24 $3,777 $1,559 $15,181 
          
    Expenditures for property, plant, and equipment (1,461) (1,561) (3,613) (7,676) (12,067)
    Proceeds from sales of property, plant, and equipment 18  34  30  92  117 
    Payments on equipment purchase contracts (26) (36) (9) (138) (141)
    Amounts funded by partners 462  184  11  710  115 
    Investments in capital expenditures, net (1,007) (1,379) (3,581) (7,012) (11,976)
    Adjusted free cash flow$(758)$(1,355)$196 $(5,453)$3,205 

    The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income (loss), net income (loss), diluted shares, diluted earnings (loss) per share, and adjusted free cash flow. The non-GAAP adjustments above may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. We believe this non-GAAP information is helpful in understanding trends and in analyzing our operating results and earnings. We are providing this information to investors to assist in performing analysis of our operating results. When evaluating performance and making decisions on how to allocate our resources, management uses this non-GAAP information and believes investors should have access to similar data when making their investment decisions. We believe these non-GAAP financial measures increase transparency by providing investors with useful supplemental information about the financial performance of our business, enabling enhanced comparison of our operating results between periods and with peer companies. The presentation of these adjusted amounts varies from amounts presented in accordance with U.S. GAAP and therefore may not be comparable to amounts reported by other companies. Our management excludes the following items in analyzing our operating results and understanding trends in our earnings:

    • Stock-based compensation;
    • Employee severance;
    • Gains and losses from settlements;
    • Restructure and asset impairments;
    • Goodwill impairment;
    • Gains and losses from debt repurchases and conversions; and
    • The estimated tax effects of above, non-cash changes in net deferred income taxes, assessments of tax exposures, certain tax matters related to prior fiscal periods, and significant changes in tax law.

    Non-GAAP diluted shares are adjusted for the impact of additional shares resulting from the exclusion of stock-based compensation from non-GAAP income (loss).

    MICRON TECHNOLOGY, INC.
    RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK

    FQ1-24 GAAP Outlook Adjustments Non-GAAP Outlook
            
    Revenue$4.40 billion ± $200 million —   $4.40 billion ± $200 million
    Gross margin(6.0%) ± 2.0% 2.0%A (4.0%) ± 2.0%
    Operating expenses$1.01 billion ± $15 million $113 million B $900 million ± $15 million
    Diluted earnings (loss) per share(1)($1.24) ± $0.07 $0.17 A, B, C ($1.07) ± $0.07


    Non-GAAP Adjustments
    (in millions)    		      
            
    AStock-based compensation – cost of goods sold $66 
    AOther – cost of goods sold  4 
    BStock-based compensation – research and development  69 
    BStock-based compensation – sales, general, and administrative  44 
    CTax effects of the above items and other tax adjustments  (1)
           $182 

    (1) GAAP and non-GAAP earnings (loss) per share based on approximately 1.10 billion diluted shares.

    The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, additional restructuring activities, balance sheet valuation adjustments, strategic investments, financing transactions, and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.

     


    Contacts:

Samir Patodia
Investor Relations
spatodia@micron.com
(408) 834-1947

Erica Rodriguez Pompen
Media Relations
epompen@micron.com
(408) 834-1873

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