Micron Technology, Inc., Reports Results for the Second Quarter of Fiscal 2005
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Micron Technology, Inc., Reports Results for the Second Quarter of Fiscal 2005

BOISE, Idaho—(BUSINESS WIRE)—March 29, 2005— Micron Technology, Inc., (NYSE: MU) today announced results of operations for its second quarter of fiscal 2005, ending March 3, 2005. For the second quarter, the Company earned operating income of $126 million and net income of $118 million, or $0.17 per diluted share, on net sales of $1,308 million. These results compare to a net loss of $28 million for the second quarter of fiscal 2004 and net income of $155 million, or $0.23 per diluted share, for the first quarter of fiscal 2005.

Net sales for the second quarter of fiscal 2005 were 32% higher than for the same quarter of fiscal 2004. Megabit sales volume was approximately 36% higher for the same comparative periods. For the second quarter of fiscal 2005, typically a seasonally slow semiconductor sales period, net sales were 4% higher than the immediately preceding quarter as a result of an approximate 23% increase in megabits sold offset by approximately 15% lower per megabit average selling prices for semiconductor memory. The lower average selling prices for the quarter were the primary factor impacting the Company's gross margin, which came in at 27%.

Megabit memory production in the second quarter of fiscal 2005 was approximately 28% higher than the immediately preceding quarter. The majority of the production increase was attributable to improvements in manufacturing efficiencies across the Company's diversified memory portfolio and the ramp of the Manassas, Virginia 300mm wafer fab. Finished goods inventory value increased $53 million during the second quarter of fiscal 2005 while work in process inventory dollars decreased slightly, reflective of gains in manufacturing efficiency.

At the end of the second quarter of fiscal 2005, the Company had $1.1 billion in cash and short-term investments. During the second quarter, the Company generated $308 million in cash from operations and invested $361 million in capital expenditures, primarily focused on the 300mm production line.

The Company will host a conference call today at 3:30 p.m. MST to discuss its financial results. The conference call, audio and slides, will be available online at www.micron.com. A Webcast replay will be available on the Company's web site until March 29, 2006. A taped audio replay of the conference call will also be available at 973-341-3080 (confirmation code: 5793466) beginning at 5:30 p.m. MST today and continuing until 5:30 p.m. MDT on April 6, 2005.

Micron Technology, Inc., is one of the world's leading providers of advanced semiconductor solutions. Through its worldwide operations, Micron manufactures and markets DRAMs, Flash memory, CMOS image sensors, other semiconductor components and memory modules for use in leading-edge computing, consumer, networking and mobile products. Micron's common stock is traded on the New York Stock Exchange (NYSE) under the MU symbol. To learn more about Micron Technology, Inc., visit its web site at www.micron.com.
                       MICRON TECHNOLOGY, INC.
                    CONSOLIDATED FINANCIAL SUMMARY
             (Amounts in millions except per share data)

                      2nd Qtr.   1st Qtr. 2nd Qtr.  Six Months Ended
                       Mar. 3,   Dec. 2,   Mar. 4,  Mar. 3,   Mar. 4,
                        2005      2004      2004     2005      2004
                      --------- --------- -------- --------- ---------
Net sales             $1,307.9  $1,260.3  $ 991.0  $2,568.2  $2,098.2
Cost of goods sold       953.9     837.3    742.8   1,791.2   1,564.0
                      --------- --------- -------- --------- ---------
     Gross margin        354.0     423.0    248.2     777.0     534.2

Selling, general and
 administrative           84.9      86.8     81.8     171.7     163.0
Research and
 development             151.4     148.4    187.9     299.8     374.3
Restructure (1)            0.1      (1.5)    (0.1)     (1.4)    (21.2)
Other operating
 (income) expense (2)     (8.8)     14.4    (14.3)      5.6       3.5
                      --------- --------- -------- --------- ---------
Operating income
 (loss)                  126.4     174.9     (7.1)    301.3      14.6

Interest expense, net     (5.0)     (4.5)    (4.9)     (9.5)    (10.4)
Other non-operating
 income (expense)          0.1      (1.3)     1.2      (1.2)      1.6
Income tax 
 provision (3)            (3.6)    (14.2)   (17.5)    (17.8)    (33.0)
                      --------- --------- -------- --------- ---------
Net income (loss)     $  117.9  $  154.9  $ (28.3) $  272.8  $  (27.2)
                      ========= ========= ======== ========= =========
Earnings (loss) per
 share:
     Basic            $   0.18  $   0.24  $ (0.04) $   0.42  $  (0.04)
     Diluted              0.17      0.23    (0.04)     0.40     (0.04)

Number of shares used
 in per share
 calculations: (4)
     Basic               647.1     646.0    643.2     646.6     638.4
     Diluted             701.3     700.5    643.2     700.8     638.4


                                                     As of
                                          Mar. 3,   Dec. 2,   Sep. 2,
                                           2005      2004      2004
                                         --------- --------- ---------
Cash and short-term investments          $1,133.6  $1,052.2  $1,231.0
Receivables                                 938.2     860.8     773.7
Inventories                                 752.7     705.4     578.1
Total current assets                      2,888.6   2,689.6   2,638.7
Property, plant and equipment, net        4,791.7   4,806.3   4,712.7
Restricted cash                              27.2      27.7      27.6
Total assets                              8,078.9   7,892.6   7,760.0

Accounts payable and accrued expenses       734.0     788.4     796.2
Current portion of long-term debt (5)       283.5     258.7      70.6
Total current liabilities                 1,093.1   1,127.2     972.1
Long-term debt (5)                          909.2     825.2   1,027.9
Shareholders' equity                      5,909.2   5,779.4   5,614.8


                                                     Six Months Ended
                                                      Mar. 3,  Mar. 4,
                                                       2005     2004
                                                     -----------------
Net cash provided by operating activities            $ 599.8  $ 486.3
Net cash used for investing activities                (700.2)  (761.4)
Net cash (used for) provided by financing activities   (26.2)   214.0

Depreciation and amortization                          630.9    608.1
Expenditures for property, plant and equipment        (670.6)  (468.5)
Payments on equipment purchase contracts              (143.4)  (200.8)

Noncash equipment acquisitions on contracts
  payable and capital leases                           276.9    118.5

The Company's fiscal year is the 52 or 53-week period ending on the
Thursday closest to August 31. The Company's fiscal 2004 contained 53
weeks and its first quarter of fiscal 2004 contained 14 weeks.

(1) In the second quarter of fiscal 2003, the Company initiated a
    series of cost-reduction initiatives. In connection therewith, the
    Company recorded a restructure charge in fiscal 2003 that included
    the shutdown of the Company's 200mm production line in Virginia,
    the discontinuance of certain memory products, including SRAM and
    TCAM products, and a 10% reduction of the Company's worldwide
    workforce. The credit to restructure in the first six months of
    fiscal 2004 primarily reflects sales of equipment associated with
    the Company's 200mm production line in Virginia.

(2) Other operating (income) expense for the first quarter of fiscal
    2005 includes net losses of $20 million from changes in currency
    exchange rates and is net of $12 million in receipts from the U.S.
    Government in connection with anti-dumping tariffs. Other
    operating (income) expense for the first six months of fiscal 2004
    includes an $8 million benefit from changes in currency exchange
    rates in the second quarter which offset a portion of the $25
    million loss recorded in the first quarter of fiscal 2004. Other
    operating (income) expense in the first six months of fiscal 2004
    includes gains net of losses on write-downs and disposals of
    semiconductor equipment of $8 million.

(3) Income taxes for fiscal 2005 and 2004 primarily reflect taxes on
    the Company's non-U.S. operations. U.S. operating results are not
    expected to reflect an income tax provision, until such time as
    the Company utilizes a substantial portion of its U.S. net
    operating loss carryforwards and unused tax credits, as any such
    provision is substantially offset by a corresponding reduction in
    the deferred tax valuation allowance.

(4) On September 24, 2003, the Company received $450 million from
    Intel Corporation in exchange for the issuance of stock rights
    exchangeable into approximately 33.9 million shares of the
    Company's common stock. The shares issuable pursuant to the stock
    rights are considered outstanding common shares in the
    computations of basic and diluted earnings per share.

(5) On March 25, 2005, the Company entered into a syndicated term loan
    for 13.5 billion Japanese yen (approximately $127 million). The 
    loan bears interest at the 6-month Tokyo Interbank Offered Rate
    ("TIBOR") plus 1.25% (currently 1.35%) and is payable in
    semi-annual installments through 2010.





Contact:
Micron Technology, Inc.
Kipp A. Bedard, 208-368-4400 (Investor Relations)

Email Contact
Trudy M. Sullivan, 208-368-4400 (Media Relations)

Email Contact
Web site URL 
http://www.micron.com