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Micron Technology, Inc. Reports Results for the Third Quarter of Fiscal 2022
Источник: Nasdaq GlobeNewswire / 30 июн 2022 16:01:51 America/New_York
BOISE, Idaho, June 30, 2022 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its third quarter of fiscal 2022, which ended June 2, 2022.
Fiscal Q3 2022 highlights
- Revenue of $8.64 billion versus $7.79 billion for the prior quarter and $7.42 billion for the same period last year
- GAAP net income of $2.63 billion, or $2.34 per diluted share
- Non-GAAP net income of $2.94 billion, or $2.59 per diluted share
- Operating cash flow of $3.84 billion versus $3.63 billion for the prior quarter and $3.56 billion for the same period last year
“Micron delivered record revenue in the fiscal third quarter driven by our team’s excellent execution across technology, products and manufacturing,” said Micron Technology President and CEO Sanjay Mehrotra. “Recently, the industry demand environment has weakened, and we are taking action to moderate our supply growth in fiscal 2023. We are confident about the long-term secular demand for memory and storage and are well positioned to deliver strong cross-cycle financial performance.”
Quarterly Financial Results GAAP(1) Non-GAAP(2) (in millions, except per share amounts) FQ3-22 FQ2-22 FQ3-21 FQ3-22 FQ2-22 FQ3-21 Revenue $ 8,642 $ 7,786 $ 7,422 $ 8,642 $ 7,786 $ 7,422 Gross margin 4,035 3,676 3,126 4,097 3,724 3,185 percent of revenue 46.7 % 47.2 % 42.1 % 47.4 % 47.8 % 42.9 % Operating expenses 1,031 1,130 1,327 953 974 821 Operating income 3,004 2,546 1,799 3,144 2,750 2,364 percent of revenue 34.8 % 32.7 % 24.2 % 36.4 % 35.3 % 31.9 % Net income 2,626 2,263 1,735 2,939 2,444 2,173 Diluted earnings per share 2.34 2.00 1.52 2.59 2.14 1.88 Investments in capital expenditures, net(2) were $2.53 billion for the third quarter of 2022, which resulted in adjusted free cash flow(2) of $1.31 billion. Micron repurchased approximately 13.8 million shares of its common stock for $981 million during the third quarter of fiscal 2022 and ended the quarter with cash, marketable investments, and restricted cash of $11.98 billion, for a net cash(2) position of $5.01 billion.
On June 30, 2022, our Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on July 26, 2022, to shareholders of record as of the close of business on July 11, 2022.
Business Outlook
The following table presents Micron’s guidance for the fourth quarter of 2022:
FQ4-22 GAAP(1) Outlook Non-GAAP(2) Outlook Revenue $7.2 billion ± $400 million $7.2 billion ± $400 million Gross margin 41.5% ± 1.5% 42.5% ± 1.5% Operating expenses $1.13 billion ± $25 million $1.05 billion ± $25 million Diluted earnings per share $1.52 ± $0.20 $1.63 ± $0.20 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 Thursday, June 30, 2022 at 2:30 p.m. Mountain time to discuss its third quarter financial results and provide forward-looking guidance for its fourth 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.
© 2022 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, demand for our products, 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, specifically 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, net cash, 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)3rd Qtr. 2nd Qtr. 3rd Qtr. Nine months ended June 2,
2022March 3,
2022June 3,
2021June 2,
2022June 3,
2021Revenue $ 8,642 $ 7,786 $ 7,422 $ 24,115 $ 19,431 Cost of goods sold 4,607 4,110 4,296 12,839 12,920 Gross margin 4,035 3,676 3,126 11,276 6,511 Research and development 773 792 670 2,277 1,958 Selling, general, and administrative 264 263 230 786 658 Restructure and asset impairments — 5 453 43 466 Other operating (income) expense, net (6 ) 70 (26 ) (11 ) 101 Operating income 3,004 2,546 1,799 8,181 3,328 Interest income 20 12 8 42 28 Interest expense (44 ) (55 ) (46 ) (144 ) (136 ) Other non-operating income (expense), net 8 6 45 (61 ) 62 2,988 2,509 1,806 8,018 3,282 Income tax (provision) benefit (358 ) (255 ) (65 ) (832 ) (164 ) Equity in net income (loss) of equity method investees (4 ) 9 (6 ) 9 23 Net income $ 2,626 $ 2,263 $ 1,735 $ 7,195 $ 3,141 Earnings per share Basic $ 2.36 $ 2.02 $ 1.55 $ 6.44 $ 2.81 Diluted 2.34 2.00 1.52 6.38 2.75 Number of shares used in per share calculations Basic 1,112 1,119 1,121 1,117 1,119 Diluted 1,121 1,130 1,145 1,127 1,141 MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)As of June 2,
2022March 3,
2022September 2,
2021Assets Cash and equivalents $ 9,157 $ 9,116 $ 7,763 Short-term investments 1,070 1,006 870 Receivables 6,229 5,384 5,311 Inventories 5,629 5,383 4,487 Assets held for sale 15 13 974 Other current assets 608 600 502 Total current assets 22,708 21,502 19,907 Long-term marketable investments 1,646 1,717 1,765 Property, plant, and equipment 36,665 36,171 33,213 Operating lease right-of-use assets 690 587 551 Intangible assets 415 414 349 Deferred tax assets 682 762 782 Goodwill 1,228 1,228 1,228 Other noncurrent assets 1,262 1,315 1,054 Total assets $ 65,296 $ 63,696 $ 58,849 Liabilities and equity Accounts payable and accrued expenses $ 5,788 $ 5,650 $ 5,325 Current debt 107 123 155 Other current liabilities 1,114 1,145 944 Total current liabilities 7,009 6,918 6,424 Long-term debt 6,856 6,953 6,621 Noncurrent operating lease liabilities 629 535 504 Noncurrent unearned government incentives 663 704 808 Other noncurrent liabilities 858 741 559 Total liabilities 16,015 15,851 14,916 Commitments and contingencies Shareholders’ equity Common stock 122 122 122 Additional capital 9,950 9,816 9,453 Retained earnings 45,916 43,407 39,051 Treasury stock (6,343 ) (5,362 ) (4,695 ) Accumulated other comprehensive income (loss) (364 ) (138 ) 2 Total equity 49,281 47,845 43,933 Total liabilities and equity $ 65,296 $ 63,696 $ 58,849 MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)Nine months ended June 2,
2022June 3,
2021Cash flows from operating activities Net income $ 7,195 $ 3,141 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense and amortization of intangible assets 5,234 4,593 Stock-based compensation 378 285 (Gain) loss on debt repurchases and conversions 83 1 Restructure and asset impairments 43 446 Change in operating assets and liabilities Receivables (906 ) (340 ) Inventories (1,146 ) 814 Accounts payable and accrued expenses 382 (309 ) Other 141 (47 ) Net cash provided by operating activities 11,404 8,584 Cash flows from investing activities Expenditures for property, plant, and equipment (8,454 ) (8,015 ) Purchases of available-for-sale securities (1,359 ) (1,919 ) Proceeds from sale of Lehi, Utah fab 888 — Proceeds from maturities of available-for-sale securities 964 1,024 Proceeds from sales of available-for-sale securities 258 473 Proceeds from government incentives 104 335 Other (162 ) 47 Net cash provided by (used for) investing activities (7,761 ) (8,055 ) Cash flows from financing activities Repayments of debt (2,008 ) (1,344 ) Repurchases of common stock - repurchase program (1,648 ) (150 ) Payments of dividends to shareholders (335 ) — Payments on equipment purchase contracts (132 ) (139 ) Repurchases of common stock - withholdings on employee equity awards (116 ) (84 ) Proceeds from issuance of debt 2,000 1,188 Other 99 92 Net cash provided by (used for) financing activities (2,140 ) (437 ) Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash (71 ) 44 Net increase (decrease) in cash, cash equivalents, and restricted cash 1,432 136 Cash, cash equivalents, and restricted cash at beginning of period 7,829 7,690 Cash, cash equivalents, and restricted cash at end of period $ 9,261 $ 7,826 MICRON TECHNOLOGY, INC.
NOTES
(Unaudited)Lehi, Utah Fab and 3D XPoint
In the second quarter of 2021, we updated our portfolio strategy to further strengthen our focus on memory and storage innovations for the data center market. In connection therewith, we determined that there was insufficient market validation to justify the ongoing investments required to commercialize 3D XPoint at scale. Accordingly, we ceased development of 3D XPoint technology and engaged in discussions with potential buyers for the sale of our facility located in Lehi that was dedicated to 3D XPoint production. As a result, we classified the property, plant, and equipment as held for sale and ceased depreciating the assets. On June 30, 2021, we announced a definitive agreement to sell our Lehi facility to Texas Instruments Incorporated (“TI”) and closed the sale on October 22, 2021.
In the first quarter of 2022, we received $893 million from TI for the sale of the Lehi facility and disposed of $918 million of net assets, consisting primarily of property, plant, and equipment of $921 million; $55 million of other assets, consisting primarily of a receivable for reimbursement of property taxes, equipment spare parts, and raw materials; and $58 million of liabilities, consisting primarily of a finance lease obligation. As a result of the disposition of the Lehi facility, we recognized a loss of $23 million included in restructure and asset impairments in the first quarter of 2022.
In the third quarter of 2021, we recognized a charge of $435 million included in restructure and asset impairments in connection with the definitive agreement with TI (and a tax benefit of $104 million included in income tax (provision) benefit) to write down the assets held for sale to the expected consideration, net of estimated selling costs. In the second quarter of 2021, we also recognized a charge of $49 million in cost of goods sold to write down 3D XPoint inventory in connection with our decision to cease further development of this technology.
Debt Activity
On November 1, 2021, we issued in a public offering $1.00 billion in principal amount of 2.703% senior notes due 2032 (green bonds), $500 million in principal amount of 3.366% senior notes due 2041, and $500 million in principal amount of 3.477% senior notes due 2051, and received aggregate net proceeds of $1.99 billion.
On November 17, 2021, we redeemed $1.25 billion in principal amount of our 2.497% senior notes due 2023 and $600 million in principal amount of our 4.640% senior notes due 2024 for $1.93 billion in cash and recognized a non-operating loss of $83 million.
MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In millions, except per share amounts)3rd Qtr. 2nd Qtr. 3rd Qtr. June 2,
2022March 3,
2022June 3,
2021GAAP gross margin $ 4,035 $ 3,676 $ 3,126 Stock-based compensation 57 44 45 Other 5 4 14 Non-GAAP gross margin $ 4,097 $ 3,724 $ 3,185 GAAP operating expenses $ 1,031 $ 1,130 $ 1,327 Stock-based compensation (78 ) (75 ) (53 ) Restructure and asset impairments — (5 ) (453 ) Other — (76 ) — Non-GAAP operating expenses $ 953 $ 974 $ 821 GAAP operating income $ 3,004 $ 2,546 $ 1,799 Stock-based compensation 135 119 98 Restructure and asset impairments — 5 453 Other 5 80 14 Non-GAAP operating income $ 3,144 $ 2,750 $ 2,364 GAAP net income $ 2,626 $ 2,263 $ 1,735 Stock-based compensation 135 119 98 Restructure and asset impairments — 5 453 Amortization of debt discount and other costs 8 8 7 Other 5 80 15 Impact of Idaho income tax reform 189 — — Estimated tax effects of above and other tax adjustments (24 ) (31 ) (135 ) Non-GAAP net income $ 2,939 $ 2,444 $ 2,173 GAAP weighted-average common shares outstanding - Diluted 1,121 1,130 1,145 Adjustment for stock-based compensation 15 13 9 Non-GAAP weighted-average common shares outstanding - Diluted 1,136 1,143 1,154 GAAP diluted earnings per share $ 2.34 $ 2.00 $ 1.52 Effects of the above adjustments 0.25 0.14 0.36 Non-GAAP diluted earnings per share $ 2.59 $ 2.14 $ 1.88 RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
3rd Qtr. 2nd Qtr. 3rd Qtr. June 2,
2022March 3,
2022June 3,
2021GAAP net cash provided by operating activities $ 3,838 $ 3,628 $ 3,560 Expenditures for property, plant, and equipment (2,578 ) (2,611 ) (2,259 ) Proceeds from sales of property, plant, and equipment 39 27 74 Payments on equipment purchase contracts (27 ) (27 ) (16 ) Amounts funded by partners 38 11 159 Investments in capital expenditures, net (2,528 ) (2,600 ) (2,042 ) Adjusted free cash flow $ 1,310 $ 1,028 $ 1,518 As of June 2,
2022March 3,
2022September 2,
2021Cash and short-term investments $ 10,227 $ 10,122 $ 8,633 Current and noncurrent restricted cash 104 108 66 Long-term marketable investments 1,646 1,717 1,765 Current and long-term debt (6,963 ) (7,076 ) (6,776 ) Net cash $ 5,014 $ 4,871 $ 3,688 The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income, net income, diluted shares, diluted earnings per share, adjusted free cash flow, and net cash. 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;
- Flow-through of business acquisition-related inventory adjustments;
- Acquisition-related costs;
- Employee severance;
- Gains and losses from settlements and patent license charges;
- Restructure and asset impairments;
- Amortization of debt discount and other costs;
- Gains and losses from debt repurchases and conversions;
- Gains and losses from business acquisition activities; 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.
MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOKFQ4-22 GAAP Outlook Adjustments Non-GAAP Outlook Revenue $7.2 billion ± $400 million — $7.2 billion ± $400 million Gross margin 41.5% ± 1.5% 1% A 42.5% ± 1.5% Operating expenses $1.13 billion ± $25 million $83 million B $1.05 billion ± $25 million Diluted earnings per share(1) $1.52 ± $0.20 $0.11 A, B, C $1.63 ± $0.20 Non-GAAP Adjustments
(in millions)A Stock-based compensation – cost of goods sold $ 45 A Other – cost of goods sold 4 B Stock-based compensation – research and development 48 B Stock-based compensation – sales, general, and administrative 35 C Tax effects of the above items and other tax adjustments (9 ) $ 123 (1) GAAP earnings per share based on approximately 1.12 billion diluted shares and non-GAAP earnings per share based on approximately 1.13 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, 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: Farhan Ahmad Investor Relations farhanahmad@micron.com (408) 834-1927 Erica Rodriguez Pompen Media Relations epompen@micron.com (408) 834-1873
