Micron Technology, Inc. (Nasdaq: MU) today announced results for
its second quarter of fiscal 2021, which ended March 4, 2021.
Fiscal Q2 2021 highlights
- Revenue of $6.24 billion versus $5.77 billion for the prior
quarter and $4.80 billion for the same period last year
- GAAP net income of $603 million, or $0.53 per diluted
share
- Non-GAAP net income of $1.13 billion, or $0.98 per diluted
share
- Operating cash flow of $3.06 billion versus $1.97 billion for
the prior quarter and $2.00 billion for the same period last
year
“Micron’s strong fiscal second quarter performance reflects
rapidly improving market conditions and continued solid execution,”
said Micron Technology President and CEO Sanjay Mehrotra. “Our
technology leadership in both DRAM and NAND places Micron in an
excellent position to capitalize on the secular demand driven by AI
and 5G, and to deliver new levels of user experience and innovation
across the data center and intelligent edge.”
Quarterly
Financial Results |
(in
millions, except per share amounts) |
GAAP(1) |
|
Non-GAAP(2) |
FQ2-21 |
FQ1-21 |
FQ2-20 |
|
FQ2-21 |
FQ1-21 |
FQ2-20 |
|
|
|
|
|
|
|
|
Revenue |
$ |
6,236 |
|
$ |
5,773 |
|
$ |
4,797 |
|
|
$ |
6,236 |
|
$ |
5,773 |
|
$ |
4,797 |
|
Gross margin |
1,649 |
|
1,736 |
|
1,355 |
|
|
2,054 |
|
1,784 |
|
1,398 |
|
percent of revenue |
26.4 |
% |
30.1 |
% |
28.2 |
% |
|
32.9 |
% |
30.9 |
% |
29.1 |
% |
Operating expenses |
986 |
|
870 |
|
915 |
|
|
797 |
|
811 |
|
856 |
|
Operating income |
663 |
|
866 |
|
440 |
|
|
1,257 |
|
973 |
|
542 |
|
percent of revenue |
10.6 |
% |
15.0 |
% |
9.2 |
% |
|
20.2 |
% |
16.9 |
% |
11.3 |
% |
Net income attributable to
Micron |
603 |
|
803 |
|
405 |
|
|
1,128 |
|
897 |
|
517 |
|
Diluted earnings per
share |
0.53 |
|
0.71 |
|
0.36 |
|
|
0.98 |
|
0.78 |
|
0.45 |
|
Investments in capital expenditures, net(2) were $2.88 billion
for the second quarter of 2021, which resulted in adjusted free
cash flows(2) of $174 million. Micron ended the quarter with cash,
marketable investments, and restricted cash of $8.57 billion, for a
net cash(2) position of $1.95 billion.
Business Outlook
The following table presents Micron’s guidance for the third
quarter of 2021:
FQ3-21 |
GAAP(1)
Outlook |
Non-GAAP(2)
Outlook |
|
|
|
Revenue |
$7.1 billion ± $200 million |
$7.1 billion ± $200 million |
Gross margin |
40.5% ± 1% |
41.5% ± 1% |
Operating expenses |
$930 million ± $25 million |
$875 million ± $25 million |
Interest (income) expense,
net |
$27 million |
$25 million |
Diluted earnings per
share |
$1.52 ± $0.07 |
$1.62 ± $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, March 31, 2021,
at 2:30 p.m. MT to discuss its second quarter financial results and
provide forward-looking guidance for its third 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.
© 2021 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, 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
www.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 after the date of this release 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)
|
2nd Qtr. |
1st Qtr. |
2nd Qtr. |
Six Months Ended |
|
March 4, 2021 |
December 3, 2020 |
February 27, 2020 |
March 4, 2021 |
February 27, 2020 |
|
|
|
|
|
|
Revenue |
$ |
6,236 |
|
|
$ |
5,773 |
|
|
$ |
4,797 |
|
|
$ |
12,009 |
|
|
$ |
9,941 |
|
|
Cost of goods sold |
4,587 |
|
|
4,037 |
|
|
3,442 |
|
|
8,624 |
|
|
7,220 |
|
|
Gross margin |
1,649 |
|
|
1,736 |
|
|
1,355 |
|
|
3,385 |
|
|
2,721 |
|
|
|
|
|
|
|
|
Research and development |
641 |
|
|
647 |
|
|
681 |
|
|
1,288 |
|
|
1,321 |
|
|
Selling, general, and
administrative |
214 |
|
|
214 |
|
|
223 |
|
|
428 |
|
|
434 |
|
|
Other operating (income)
expense, net |
131 |
|
|
9 |
|
|
11 |
|
|
140 |
|
|
8 |
|
|
Operating income |
663 |
|
|
866 |
|
|
440 |
|
|
1,529 |
|
|
958 |
|
|
|
|
|
|
|
|
Interest income |
10 |
|
|
10 |
|
|
34 |
|
|
20 |
|
|
78 |
|
|
Interest expense |
(42 |
) |
|
(48 |
) |
|
(46 |
) |
|
(90 |
) |
|
(93 |
) |
|
Other non-operating income
(expense), net |
4 |
|
|
13 |
|
|
(1 |
) |
|
17 |
|
|
45 |
|
|
|
635 |
|
|
841 |
|
|
427 |
|
|
1,476 |
|
|
988 |
|
|
|
|
|
|
|
|
Income tax (provision)
benefit |
(48 |
) |
|
(51 |
) |
|
(21 |
) |
|
(99 |
) |
|
(76 |
) |
|
Equity in net income (loss) of
equity method investees |
16 |
|
|
13 |
|
|
1 |
|
|
29 |
|
|
3 |
|
|
Net income |
603 |
|
|
803 |
|
|
407 |
|
|
1,406 |
|
|
915 |
|
|
|
|
|
|
|
|
Net income attributable to
noncontrolling interests |
— |
|
|
— |
|
|
(2 |
) |
|
— |
|
|
(19 |
) |
|
Net income attributable to Micron |
$ |
603 |
|
|
$ |
803 |
|
|
$ |
405 |
|
|
$ |
1,406 |
|
|
$ |
896 |
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
Basic |
$ |
0.54 |
|
|
$ |
0.72 |
|
|
$ |
0.37 |
|
|
$ |
1.26 |
|
|
$ |
0.81 |
|
|
Diluted |
0.53 |
|
|
0.71 |
|
|
0.36 |
|
|
1.23 |
|
|
0.79 |
|
|
|
|
|
|
|
|
Number of shares used in per
share calculations |
|
|
|
|
|
Basic |
1,120 |
|
|
1,115 |
|
|
1,111 |
|
|
1,118 |
|
|
1,109 |
|
|
Diluted |
1,144 |
|
|
1,135 |
|
|
1,133 |
|
|
1,139 |
|
|
1,131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MICRON TECHNOLOGY,
INC.CONSOLIDATED BALANCE SHEETS(In
millions)(Unaudited)
As of |
March 4, 2021 |
December 3, 2020 |
September 3, 2020 |
|
|
|
|
Assets |
|
|
|
Cash and equivalents |
$ |
6,507 |
|
|
$ |
5,985 |
|
|
$ |
7,624 |
|
|
Short-term investments |
677 |
|
|
1,047 |
|
|
518 |
|
|
Receivables |
3,353 |
|
|
3,691 |
|
|
3,912 |
|
|
Inventories |
4,743 |
|
|
5,242 |
|
|
5,373 |
|
|
Assets held for sale |
1,461 |
|
|
— |
|
|
— |
|
|
Other current assets |
538 |
|
|
564 |
|
|
538 |
|
|
Total current assets |
17,279 |
|
|
16,529 |
|
|
17,965 |
|
|
Long-term marketable
investments |
1,316 |
|
|
1,264 |
|
|
1,048 |
|
|
Property, plant, and
equipment |
31,848 |
|
|
32,229 |
|
|
31,031 |
|
|
Operating lease right-of-use
assets |
575 |
|
|
577 |
|
|
584 |
|
|
Intangible assets |
342 |
|
|
336 |
|
|
334 |
|
|
Deferred tax assets |
726 |
|
|
726 |
|
|
707 |
|
|
Goodwill |
1,228 |
|
|
1,228 |
|
|
1,228 |
|
|
Other noncurrent assets |
821 |
|
|
802 |
|
|
781 |
|
|
Total assets |
$ |
54,135 |
|
|
$ |
53,691 |
|
|
$ |
53,678 |
|
|
|
|
|
|
Liabilities and
equity |
|
|
|
Accounts payable and accrued
expenses |
$ |
4,550 |
|
|
$ |
4,856 |
|
|
$ |
5,817 |
|
|
Current debt |
323 |
|
|
273 |
|
|
270 |
|
|
Other current liabilities |
560 |
|
|
559 |
|
|
548 |
|
|
Total current liabilities |
5,433 |
|
|
5,688 |
|
|
6,635 |
|
|
Long-term debt |
6,298 |
|
|
6,356 |
|
|
6,373 |
|
|
Noncurrent operating lease
liabilities |
528 |
|
|
529 |
|
|
533 |
|
|
Noncurrent unearned government
incentives |
661 |
|
|
656 |
|
|
643 |
|
|
Other noncurrent
liabilities |
552 |
|
|
555 |
|
|
498 |
|
|
Total liabilities |
13,472 |
|
|
13,784 |
|
|
14,682 |
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
|
Common stock |
120 |
|
|
120 |
|
|
119 |
|
|
Additional capital |
9,234 |
|
|
9,034 |
|
|
8,917 |
|
|
Retained earnings |
34,723 |
|
|
34,138 |
|
|
33,384 |
|
|
Treasury stock |
(3,495 |
) |
|
(3,495 |
) |
|
(3,495 |
) |
|
Accumulated other comprehensive income (loss) |
81 |
|
|
110 |
|
|
71 |
|
|
Total equity |
40,663 |
|
|
39,907 |
|
|
38,996 |
|
|
Total liabilities and equity |
$ |
54,135 |
|
|
$ |
53,691 |
|
|
$ |
53,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MICRON TECHNOLOGY,
INC.CONSOLIDATED STATEMENTS OF CASH
FLOWS(In millions)(Unaudited)
Six months ended |
March 4,2021 |
February 27,2020 |
|
|
|
Cash flows from
operating activities |
|
|
Net income |
$ |
1,406 |
|
|
$ |
915 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities |
|
|
Depreciation expense and amortization of intangible assets |
3,036 |
|
|
2,661 |
|
|
Amortization of debt discount and other costs |
15 |
|
|
16 |
|
|
Stock-based compensation |
189 |
|
|
157 |
|
|
(Gain) loss on debt prepayments, repurchases, and conversions |
— |
|
|
(42 |
) |
|
Change in operating assets and liabilities |
|
|
Receivables |
533 |
|
|
104 |
|
|
Inventories |
629 |
|
|
(69 |
) |
|
Accounts payable and accrued expenses |
(777 |
) |
|
257 |
|
|
Deferred income taxes, net |
(11 |
) |
|
38 |
|
|
Other |
4 |
|
|
(25 |
) |
|
Net cash provided by operating activities |
5,024 |
|
|
4,012 |
|
|
|
|
|
Cash flows from
investing activities |
|
|
Expenditures for property,
plant, and equipment |
(5,756 |
) |
|
(3,999 |
) |
|
Purchases of
available-for-sale securities |
(1,349 |
) |
|
(566 |
) |
|
Proceeds from maturities of
available-for-sale securities |
746 |
|
|
523 |
|
|
Proceeds from sales of
available-for-sale securities |
178 |
|
|
1,059 |
|
|
Proceeds from government
incentives |
176 |
|
|
105 |
|
|
Other |
31 |
|
|
(21 |
) |
|
Net cash provided by (used for) investing activities |
(5,974 |
) |
|
(2,899 |
) |
|
|
|
|
Cash flows from
financing activities |
|
|
Payments on equipment purchase
contracts |
(123 |
) |
|
(29 |
) |
|
Repayments of debt |
(103 |
) |
|
(1,676 |
) |
|
Acquisition of noncontrolling
interest in IMFT |
— |
|
|
(744 |
) |
|
Proceeds from issuance of
debt |
— |
|
|
1,250 |
|
|
Other |
17 |
|
|
(8 |
) |
|
Net cash provided by (used for) financing activities |
(209 |
) |
|
(1,207 |
) |
|
|
|
|
Effect of changes in currency
exchange rates on cash, cash equivalents, and restricted cash |
43 |
|
|
(14 |
) |
|
|
|
|
Net increase (decrease) in
cash, cash equivalents, and restricted cash |
(1,116 |
) |
|
(108 |
) |
|
Cash, cash equivalents, and
restricted cash at beginning of period |
7,690 |
|
|
7,279 |
|
|
Cash, cash equivalents, and
restricted cash at end of period |
$ |
6,574 |
|
|
$ |
7,171 |
|
|
|
|
|
|
|
|
|
|
|
MICRON TECHNOLOGY,
INC.NOTES(Unaudited)
Inventory
Effective as of the beginning of the second quarter of 2021, we
changed our method of inventory costing from average cost to FIFO.
This change in accounting principle is preferable because in an
environment with continuously changing production costs FIFO more
closely matches the actual cost of goods sold with the revenues
from sales of those specific units, better represents the actual
cost of inventories remaining on hand at any period-end, and
improves comparability with our semiconductor industry peers. The
change to FIFO was not material to any prior periods, nor is the
cumulative effect of $133 million material to the second
quarter of 2021. As such, prior periods were not retrospectively
adjusted, and the cumulative effect was reported as an increase to
cost of goods sold for the second quarter of 2021 of
$133 million, with an offsetting reduction to beginning
inventories. This charge resulted in a corresponding reduction to
operating income, a $128 million reduction to net income, and
an $0.11 reduction to diluted earnings per share for the second
quarter of 2021.
Beginning in the second quarter of 2021, we changed the
classification of spare parts for equipment to better align with
the manner in which they are used in operations. As a result, we
now present spare parts as other current assets and no longer as a
component of raw materials inventories. This reclassification was
applied on a retrospective basis. As a result, $270 million of
spare parts were presented in other current assets as of March 4,
2021, and we reclassified spare parts from inventories to other
current assets of $279 million and $234 million in the
accompanying balance sheets as of December 3, 2020 and September 3,
2020, respectively.
Assets Held for Sale
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 XPointTM at scale.
Effective as of the end of the second quarter of 2021, we ceased
development of 3D XPoint technology and engaged in discussions with
potential buyers for the sale of our facility located in Lehi,
Utah, 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. As of March 4, 2021, the
significant balances of assets and liabilities classified as
held-for-sale in connection with our Lehi facility included $1.44
billion of property, plant, and equipment included in assets held
for sale and $51 million of a finance lease obligation included in
current portion of long-term debt. We also recognized a charge of
$49 million to cost of goods sold in the second quarter of
2021 to write down 3D XPoint inventory due to our decision to cease
further development of this technology. We expect to reach an
agreement for the sale of our Lehi facility within calendar year
2021.
MICRON TECHNOLOGY,
INC.RECONCILIATION OF GAAP TO NON-GAAP
MEASURES(In millions, except per share amounts)
|
2nd Qtr. |
1st Qtr. |
2nd Qtr. |
|
March 4, 2021 |
December 3, 2020 |
February 27, 2020 |
|
|
|
|
GAAP gross margin |
$ |
1,649 |
|
|
$ |
1,736 |
|
|
$ |
1,355 |
|
|
Inventory accounting policy change to FIFO |
133 |
|
|
— |
|
|
— |
|
|
Change in inventory cost absorption |
160 |
|
|
— |
|
|
— |
|
|
3D XPoint inventory write-down |
49 |
|
|
— |
|
|
— |
|
|
Stock-based compensation |
57 |
|
|
41 |
|
|
37 |
|
|
Other |
6 |
|
|
7 |
|
|
6 |
|
|
Non-GAAP gross
margin |
$ |
2,054 |
|
|
$ |
1,784 |
|
|
$ |
1,398 |
|
|
|
|
|
|
GAAP operating
expenses |
$ |
986 |
|
|
$ |
870 |
|
|
$ |
915 |
|
|
Stock-based compensation |
(55 |
) |
|
(51 |
) |
|
(48 |
) |
|
Patent license charges |
(128 |
) |
|
— |
|
|
— |
|
|
Restructure and asset impairments |
(5 |
) |
|
(8 |
) |
|
(10 |
) |
|
Other |
(1 |
) |
|
— |
|
|
(1 |
) |
|
Non-GAAP operating
expenses |
$ |
797 |
|
|
$ |
811 |
|
|
$ |
856 |
|
|
|
|
|
|
GAAP operating
income |
$ |
663 |
|
|
$ |
866 |
|
|
$ |
440 |
|
|
Inventory accounting policy change to FIFO |
133 |
|
|
— |
|
|
— |
|
|
Change in inventory cost absorption |
160 |
|
|
— |
|
|
— |
|
|
3D XPoint inventory write-down |
49 |
|
|
— |
|
|
— |
|
|
Stock-based compensation |
112 |
|
|
92 |
|
|
85 |
|
|
Patent license charges |
128 |
|
|
— |
|
|
— |
|
|
Restructure and asset impairments |
5 |
|
|
8 |
|
|
10 |
|
|
Other |
7 |
|
|
7 |
|
|
7 |
|
|
Non-GAAP operating
income |
$ |
1,257 |
|
|
$ |
973 |
|
|
$ |
542 |
|
|
|
|
|
|
GAAP net income
attributable to Micron |
$ |
603 |
|
|
$ |
803 |
|
|
$ |
405 |
|
|
Inventory accounting policy change to FIFO |
133 |
|
|
— |
|
|
— |
|
|
Change in inventory cost absorption |
160 |
|
|
— |
|
|
— |
|
|
3D XPoint inventory write-down |
49 |
|
|
— |
|
|
— |
|
|
Stock-based compensation |
112 |
|
|
92 |
|
|
85 |
|
|
Patent license charges |
128 |
|
|
— |
|
|
— |
|
|
Restructure and asset impairments |
5 |
|
|
8 |
|
|
10 |
|
|
Amortization of debt discount and other costs |
8 |
|
|
7 |
|
|
6 |
|
|
Other |
7 |
|
|
7 |
|
|
7 |
|
|
Estimated tax effects of above and non-cash changes in net deferred
income taxes |
(77 |
) |
|
(20 |
) |
|
4 |
|
|
Non-GAAP net income
attributable to Micron |
$ |
1,128 |
|
|
$ |
897 |
|
|
$ |
517 |
|
|
|
|
|
|
GAAP weighted-average
common shares outstanding - Diluted |
1,144 |
|
|
1,135 |
|
|
1,133 |
|
|
Adjustment for stock-based compensation and capped calls |
10 |
|
|
11 |
|
|
11 |
|
|
Non-GAAP
weighted-average common shares outstanding - Diluted |
1,154 |
|
|
1,146 |
|
|
1,144 |
|
|
|
|
|
|
GAAP diluted earnings
per share |
$ |
0.53 |
|
|
$ |
0.71 |
|
|
$ |
0.36 |
|
|
Effects of the above adjustments |
0.45 |
|
|
0.07 |
|
|
0.09 |
|
|
Non-GAAP diluted
earnings per share |
$ |
0.98 |
|
|
$ |
0.78 |
|
|
$ |
0.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP
MEASURES, Continued
|
2nd Qtr. |
1st Qtr. |
2nd Qtr. |
|
March 4,2021 |
December 3,2020 |
February 27,2020 |
|
|
|
|
GAAP net cash provided by operating
activities |
$ |
3,057 |
|
|
$ |
1,967 |
|
|
$ |
2,001 |
|
|
Investments in capital
expenditures, net |
|
|
|
Expenditures for property, plant, and equipment, net(1) |
(3,000 |
) |
|
(2,726 |
) |
|
(2,013 |
) |
|
Payments on equipment purchase contracts |
(26 |
) |
|
(97 |
) |
|
(18 |
) |
|
Amounts funded by partners |
143 |
|
|
40 |
|
|
93 |
|
|
Adjusted free cash
flow |
$ |
174 |
|
|
$ |
(816 |
) |
|
$ |
63 |
|
|
(1) |
|
Expenditures for property, plant, and equipment, net include
proceeds from sales of property, plant, and equipment of $18
million for the second quarter of 2021, $12 million for the first
quarter of 2021, and $43 million for the second quarter of
2020. |
As of |
March 4, 2021 |
December 3, 2020 |
September 3, 2020 |
|
|
|
|
Cash and short-term investments |
$ |
7,184 |
|
|
$ |
7,032 |
|
|
$ |
8,142 |
|
|
Current and noncurrent
restricted cash |
67 |
|
|
67 |
|
|
66 |
|
|
Long-term marketable
investments |
1,316 |
|
|
1,264 |
|
|
1,048 |
|
|
Current and long-term
debt |
(6,621 |
) |
|
(6,629 |
) |
|
(6,643 |
) |
|
Net cash |
$ |
1,946 |
|
|
$ |
1,734 |
|
|
$ |
2,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The tables above reconcile GAAP to non-GAAP measures of gross
margin, operating expenses, operating income, net income
attributable to Micron, 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;
- Start-up and preproduction costs;
- Employee severance;
- Patent license charges;
- Restructure and asset impairments;
- Amortization of debt discount and other costs, including the
accretion of non-cash interest expense associated with our
convertible notes and other debt;
- Gains and losses from debt repurchases and conversions;
- Gains and losses from business acquisition activities;
- Initial impact of inventory accounting policy change to FIFO
and change in inventory cost absorption in the second quarter of
2021; and
- The estimated tax effects of above, non-cash changes in net
deferred income taxes, assessments of tax exposures, 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. Non-GAAP diluted shares also
include the impact of capped calls, which are anti-dilutive in GAAP
earnings per share but are expected to mitigate the dilutive effect
of convertible notes, based on the average share price for the
period the capped calls were outstanding.
MICRON TECHNOLOGY,
INC.RECONCILIATION OF GAAP TO NON-GAAP
OUTLOOK
FQ3-21 |
GAAP Outlook |
|
Adjustments |
|
Non-GAAP Outlook |
|
|
|
|
|
|
|
|
Revenue |
$7.1 billion ± $200 million |
|
— |
|
|
|
$7.1 billion ± $200 million |
Gross margin |
40.5% ± 1% |
|
1% |
|
A |
|
41.5% ± 1% |
Operating expenses |
$930 million ± $25 million |
|
$55 million |
|
B |
|
$875 million ± $25 million |
Interest (income) expense,
net |
$27 million |
|
$2 million |
|
C |
|
$25 million |
Diluted earnings per
share(1) |
$1.52 ± $0.07 |
|
$0.10 |
|
A, B, C, D |
|
$1.62 ± $0.07 |
Non-GAAP
Adjustments(in millions) |
|
|
|
|
|
|
A |
Stock-based compensation – cost of goods sold |
|
$ |
46 |
|
A |
Other – cost of goods
sold |
|
7 |
|
B |
Stock-based compensation –
research and development |
|
29 |
|
B |
Stock-based compensation –
sales, general, and administrative |
|
26 |
|
C |
Amortization of debt discount
and other costs |
|
2 |
|
D |
Tax effects of the above items
and non-cash changes in net deferred income taxes |
|
2 |
|
|
|
|
$ |
112 |
|
(1) |
|
GAAP earnings per share based on approximately 1.15 billion diluted
shares and non-GAAP earnings per share based on approximately 1.16
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
Micron Technology (NASDAQ:MU)
Historical Stock Chart
From Aug 2024 to Sep 2024
Micron Technology (NASDAQ:MU)
Historical Stock Chart
From Sep 2023 to Sep 2024