Micron Technology, Inc. (Nasdaq: MU) today announced results for
its fourth quarter and full year of fiscal 2022, which ended
September 1, 2022.
Fiscal Q4 2022
highlights
- Revenue of $6.64 billion versus $8.64 billion for the prior
quarter and $8.27 billion for the same period last year
- GAAP net income of $1.49 billion, or $1.35 per diluted
share
- Non-GAAP net income of $1.62 billion, or $1.45 per diluted
share
- Operating cash flow of $3.78 billion versus $3.84 billion for
the prior quarter and $3.88 billion for the same period last
year
Fiscal 2022 highlights
- Revenue of $30.76 billion versus $27.71 billion for the prior
year
- GAAP net income of $8.69 billion, or $7.75 per diluted
share
- Non-GAAP net income of $9.48 billion, or $8.35 per diluted
share
- Operating cash flow of $15.18 billion versus $12.47 billion for
the prior year
“In fiscal 2022, Micron generated record revenue of $30.8
billion and delivered our sixth consecutive year of positive free
cash flow, allowing us to return a record $2.9 billion to our
shareholders,” said Micron Technology President and CEO Sanjay
Mehrotra. “Our technology and manufacturing leadership in both DRAM
and NAND, deep customer relationships, diverse product portfolio,
and strong balance sheet put Micron on solid footing to navigate
the weakened near-term supply-demand environment. We are taking
decisive steps to reduce our supply growth including a nearly 50%
wafer fab equipment capex cut versus last year, and we expect to
emerge from this downcycle well positioned to capitalize on the
long-term demand for memory and storage.”
Quarterly
Financial Results |
(in
millions, except per share amounts) |
GAAP(1) |
|
Non-GAAP(2) |
FQ4-22 |
FQ3-22 |
FQ4-21 |
|
FQ4-22 |
FQ3-22 |
FQ4-21 |
|
|
|
|
|
|
|
|
Revenue |
$ |
6,643 |
|
$ |
8,642 |
|
$ |
8,274 |
|
|
$ |
6,643 |
|
$ |
8,642 |
|
$ |
8,274 |
|
Gross margin |
|
2,622 |
|
|
4,035 |
|
|
3,912 |
|
|
|
2,676 |
|
|
4,097 |
|
|
3,964 |
|
percent of revenue |
|
39.5 |
% |
|
46.7 |
% |
|
47.3 |
% |
|
|
40.3 |
% |
|
47.4 |
% |
|
47.9 |
% |
Operating expenses |
|
1,101 |
|
|
1,031 |
|
|
957 |
|
|
|
1,014 |
|
|
953 |
|
|
891 |
|
Operating income |
|
1,521 |
|
|
3,004 |
|
|
2,955 |
|
|
|
1,662 |
|
|
3,144 |
|
|
3,073 |
|
percent of revenue |
|
22.9 |
% |
|
34.8 |
% |
|
35.7 |
% |
|
|
25.0 |
% |
|
36.4 |
% |
|
37.1 |
% |
Net income |
|
1,492 |
|
|
2,626 |
|
|
2,720 |
|
|
|
1,621 |
|
|
2,939 |
|
|
2,778 |
|
Diluted earnings per
share |
|
1.35 |
|
|
2.34 |
|
|
2.39 |
|
|
|
1.45 |
|
|
2.59 |
|
|
2.42 |
|
Annual
Financial Results |
(in
millions, except per share amounts) |
GAAP(1) |
|
Non-GAAP(2) |
FY 22 |
FY 21 |
|
FY 22 |
FY 21 |
|
|
|
|
|
|
Revenue |
$ |
30,758 |
|
$ |
27,705 |
|
|
$ |
30,758 |
|
$ |
27,705 |
|
Gross margin |
|
13,898 |
|
|
10,423 |
|
|
|
14,113 |
|
|
10,987 |
|
percent of revenue |
|
45.2 |
% |
|
37.6 |
% |
|
|
45.9 |
% |
|
39.7 |
% |
Operating expenses |
|
4,196 |
|
|
4,140 |
|
|
|
3,832 |
|
|
3,320 |
|
Operating income |
|
9,702 |
|
|
6,283 |
|
|
|
10,281 |
|
|
7,667 |
|
percent of revenue |
|
31.5 |
% |
|
22.7 |
% |
|
|
33.4 |
% |
|
27.7 |
% |
Net income |
|
8,687 |
|
|
5,861 |
|
|
|
9,475 |
|
|
6,976 |
|
Diluted earnings per
share |
|
7.75 |
|
|
5.14 |
|
|
|
8.35 |
|
|
6.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in capital expenditures, net(2) were $3.58 billion
for the fourth quarter of 2022 and $11.98 billion for the full year
of 2022, which resulted in adjusted free cash flows(2) of $196
million for the fourth quarter of 2022 and $3.21 billion for the
full year of 2022. Micron repurchased approximately 13.2 million
shares of its common stock for $784 million during the fourth
quarter of 2022 and 35.4 million shares of its common stock for
$2.43 billion during the full year of 2022 and ended the year with
cash, marketable investments, and restricted cash of $11.06
billion, for a net cash(2) position of $4.15 billion. On September
29, 2022, Micron’s Board of Directors declared a quarterly dividend
of $0.115 per share, payable in cash on October 26, 2022, to
shareholders of record as of the close of business on October 11,
2022.
Business Outlook
The following table presents Micron’s guidance for the first
quarter of 2023:
FQ1-23 |
GAAP(1)
Outlook |
Non-GAAP(2)
Outlook |
|
|
|
Revenue |
$4.25 billion ± $250 million |
$4.25 billion ± $250 million |
Gross margin |
25.0% ± 2.0% |
26.0% ± 2.0% |
Operating expenses |
$1.09 billion ± $25 million |
$1.00 billion ± $25 million |
Diluted earnings (loss) per
share |
($0.09) ± $0.10 |
$0.04 ± $0.10 |
|
|
|
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, September 29,
2022 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.
© 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, 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, 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)
|
4th Qtr. |
3rd Qtr. |
4th Qtr. |
Year Ended |
|
September 1,2022 |
June 2,2022 |
September 2,2021 |
September 1,2022 |
September 2,2021 |
|
|
|
|
|
|
Revenue |
$ |
6,643 |
|
$ |
8,642 |
|
$ |
8,274 |
|
$ |
30,758 |
|
$ |
27,705 |
|
Cost of goods sold |
|
4,021 |
|
|
4,607 |
|
|
4,362 |
|
|
16,860 |
|
|
17,282 |
|
Gross margin |
|
2,622 |
|
|
4,035 |
|
|
3,912 |
|
|
13,898 |
|
|
10,423 |
|
|
|
|
|
|
|
Research and development |
|
839 |
|
|
773 |
|
|
705 |
|
|
3,116 |
|
|
2,663 |
|
Selling, general, and
administrative |
|
280 |
|
|
264 |
|
|
236 |
|
|
1,066 |
|
|
894 |
|
Restructure and asset
impairments |
|
5 |
|
|
— |
|
|
22 |
|
|
48 |
|
|
488 |
|
Other operating (income)
expense, net |
|
(23 |
) |
|
(6 |
) |
|
(6 |
) |
|
(34 |
) |
|
95 |
|
Operating income |
|
1,521 |
|
|
3,004 |
|
|
2,955 |
|
|
9,702 |
|
|
6,283 |
|
|
|
|
|
|
|
Interest income |
|
54 |
|
|
20 |
|
|
9 |
|
|
96 |
|
|
37 |
|
Interest expense |
|
(45 |
) |
|
(44 |
) |
|
(47 |
) |
|
(189 |
) |
|
(183 |
) |
Other non-operating income
(expense), net |
|
23 |
|
|
8 |
|
|
19 |
|
|
(38 |
) |
|
81 |
|
|
|
1,553 |
|
|
2,988 |
|
|
2,936 |
|
|
9,571 |
|
|
6,218 |
|
|
|
|
|
|
|
Income tax (provision)
benefit |
|
(56 |
) |
|
(358 |
) |
|
(230 |
) |
|
(888 |
) |
|
(394 |
) |
Equity in net income (loss) of
equity method investees |
|
(5 |
) |
|
(4 |
) |
|
14 |
|
|
4 |
|
|
37 |
|
Net income |
$ |
1,492 |
|
$ |
2,626 |
|
$ |
2,720 |
|
$ |
8,687 |
|
$ |
5,861 |
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
Basic |
$ |
1.36 |
|
$ |
2.36 |
|
$ |
2.42 |
|
$ |
7.81 |
|
$ |
5.23 |
|
Diluted |
|
1.35 |
|
|
2.34 |
|
|
2.39 |
|
|
7.75 |
|
|
5.14 |
|
|
|
|
|
|
|
Number of shares used in per
share calculations |
|
|
|
|
|
Basic |
|
1,097 |
|
|
1,112 |
|
|
1,123 |
|
|
1,112 |
|
|
1,120 |
|
Diluted |
|
1,106 |
|
|
1,121 |
|
|
1,138 |
|
|
1,122 |
|
|
1,141 |
|
MICRON TECHNOLOGY,
INC.CONSOLIDATED BALANCE SHEETS(In
millions)(Unaudited)
As of |
September 1,2022 |
June 2,2022 |
September 2,2021 |
|
|
|
|
Assets |
|
|
|
Cash and equivalents |
$ |
8,262 |
|
$ |
9,157 |
|
$ |
7,763 |
|
Short-term investments |
|
1,069 |
|
|
1,070 |
|
|
870 |
|
Receivables |
|
5,130 |
|
|
6,229 |
|
|
5,311 |
|
Inventories |
|
6,663 |
|
|
5,629 |
|
|
4,487 |
|
Assets held for sale |
|
13 |
|
|
15 |
|
|
974 |
|
Other current assets |
|
644 |
|
|
608 |
|
|
502 |
|
Total current assets |
|
21,781 |
|
|
22,708 |
|
|
19,907 |
|
Long-term marketable
investments |
|
1,647 |
|
|
1,646 |
|
|
1,765 |
|
Property, plant, and
equipment |
|
38,549 |
|
|
36,665 |
|
|
33,213 |
|
Operating lease right-of-use
assets |
|
678 |
|
|
690 |
|
|
551 |
|
Intangible assets |
|
421 |
|
|
415 |
|
|
349 |
|
Deferred tax assets |
|
702 |
|
|
682 |
|
|
782 |
|
Goodwill |
|
1,228 |
|
|
1,228 |
|
|
1,228 |
|
Other noncurrent assets |
|
1,277 |
|
|
1,262 |
|
|
1,054 |
|
Total assets |
$ |
66,283 |
|
$ |
65,296 |
|
$ |
58,849 |
|
|
|
|
|
Liabilities and
equity |
|
|
|
Accounts payable and accrued
expenses |
$ |
6,090 |
|
$ |
5,788 |
|
$ |
5,325 |
|
Current debt |
|
103 |
|
|
107 |
|
|
155 |
|
Other current liabilities |
|
1,346 |
|
|
1,114 |
|
|
944 |
|
Total current liabilities |
|
7,539 |
|
|
7,009 |
|
|
6,424 |
|
Long-term debt |
|
6,803 |
|
|
6,856 |
|
|
6,621 |
|
Noncurrent operating lease
liabilities |
|
610 |
|
|
629 |
|
|
504 |
|
Noncurrent unearned government
incentives |
|
589 |
|
|
663 |
|
|
808 |
|
Other noncurrent
liabilities |
|
835 |
|
|
858 |
|
|
559 |
|
Total liabilities |
|
16,376 |
|
|
16,015 |
|
|
14,916 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
|
Common stock |
|
123 |
|
|
122 |
|
|
122 |
|
Additional capital |
|
10,197 |
|
|
9,950 |
|
|
9,453 |
|
Retained earnings |
|
47,274 |
|
|
45,916 |
|
|
39,051 |
|
Treasury stock |
|
(7,127 |
) |
|
(6,343 |
) |
|
(4,695 |
) |
Accumulated other comprehensive income (loss) |
|
(560 |
) |
|
(364 |
) |
|
2 |
|
Total equity |
|
49,907 |
|
|
49,281 |
|
|
43,933 |
|
Total liabilities and equity |
$ |
66,283 |
|
$ |
65,296 |
|
$ |
58,849 |
|
|
|
|
|
MICRON TECHNOLOGY,
INC.CONSOLIDATED STATEMENTS OF
CASH FLOWS(In millions)(Unaudited)
For the year ended |
September 1,2022 |
September 2,2021 |
|
|
|
Cash flows from
operating activities |
|
|
Net income |
$ |
8,687 |
|
$ |
5,861 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
Depreciation expense and amortization of intangible assets |
|
7,116 |
|
|
6,214 |
|
Stock-based compensation |
|
514 |
|
|
378 |
|
(Gain) loss on debt repurchases and conversions |
|
83 |
|
|
1 |
|
Restructure and asset impairment |
|
44 |
|
|
454 |
|
Change in operating assets and liabilities: |
|
|
Receivables |
|
190 |
|
|
(1,446 |
) |
Inventories |
|
(2,179 |
) |
|
866 |
|
Accounts payable and accrued expenses |
|
744 |
|
|
210 |
|
Other |
|
(18 |
) |
|
(70 |
) |
Net cash provided by operating activities |
|
15,181 |
|
|
12,468 |
|
|
|
|
Cash flows from
investing activities |
|
|
Expenditures for property,
plant, and equipment |
|
(12,067 |
) |
|
(10,030 |
) |
Purchases of
available-for-sale securities |
|
(1,770 |
) |
|
(3,163 |
) |
Proceeds from maturities of
available-for-sale securities |
|
1,321 |
|
|
1,250 |
|
Proceeds from sale of Lehi,
Utah fab |
|
888 |
|
|
— |
|
Proceeds from sales of
available-for-sale securities |
|
294 |
|
|
856 |
|
Proceeds from government
incentives |
|
115 |
|
|
495 |
|
Other |
|
(366 |
) |
|
3 |
|
Net cash provided by (used for) investing activities |
|
(11,585 |
) |
|
(10,589 |
) |
|
|
|
Cash flows from
financing activities |
|
|
Repurchases of common stock -
repurchase program |
|
(2,432 |
) |
|
(1,200 |
) |
Repayments of debt |
|
(2,032 |
) |
|
(1,520 |
) |
Payments of dividends to
shareholders |
|
(461 |
) |
|
— |
|
Payments on equipment purchase
contracts |
|
(141 |
) |
|
(295 |
) |
Repurchases of common stock -
withholdings on employee equity awards |
|
(125 |
) |
|
(94 |
) |
Proceeds from issuance of
debt |
|
2,000 |
|
|
1,188 |
|
Other |
|
211 |
|
|
140 |
|
Net cash provided by (used for) financing activities |
|
(2,980 |
) |
|
(1,781 |
) |
|
|
|
Effect of changes in currency
exchange rates on cash, cash equivalents, and restricted cash |
|
(106 |
) |
|
41 |
|
|
|
|
Net increase (decrease) in
cash, cash equivalents, and restricted cash |
|
510 |
|
|
139 |
|
Cash, cash equivalents, and
restricted cash at beginning of period |
|
7,829 |
|
|
7,690 |
|
Cash, cash equivalents, and
restricted cash at end of period |
$ |
8,339 |
|
$ |
7,829 |
|
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, Utah that was dedicated to 3D XPoint
production. As a result, we classified the property, plant, and
equipment as held for sale as of the second quarter of 2021 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 and other related adjustments, we
recognized a loss of $23 million included in restructure and
asset impairments in the first quarter of 2022.
In 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.
The impairment charge was based on Level 3 inputs including
expected consideration and the composition of assets included in
the sale, which were derived from the agreement with TI. We also
recognized a charge of $49 million to cost of goods sold in 2021 to
write down 3D XPoint inventory due to our decision to cease further
development of this technology. Our 3D XPoint technology
development and Lehi facility operations were primarily included in
our CNBU segment results.
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)
|
4th Qtr. |
3rd Qtr. |
4th Qtr. |
Year Ended |
|
September 1,2022 |
June 2,2022 |
September 2,2021 |
September 1,2022 |
September 2,2021 |
|
|
|
|
|
|
GAAP gross margin |
$ |
2,622 |
|
$ |
4,035 |
|
$ |
3,912 |
|
$ |
13,898 |
|
$ |
10,423 |
|
Stock-based compensation |
|
49 |
|
|
57 |
|
|
43 |
|
|
193 |
|
|
186 |
|
Inventory accounting policy change to FIFO |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
133 |
|
Change in inventory cost absorption |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
160 |
|
3D XPoint inventory write-down |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
49 |
|
Other |
|
5 |
|
|
5 |
|
|
9 |
|
|
22 |
|
|
36 |
|
Non-GAAP gross
margin |
$ |
2,676 |
|
$ |
4,097 |
|
$ |
3,964 |
|
$ |
14,113 |
|
$ |
10,987 |
|
|
|
|
|
|
|
GAAP operating
expenses |
$ |
1,101 |
|
$ |
1,031 |
|
$ |
957 |
|
$ |
4,196 |
|
$ |
4,140 |
|
Stock-based compensation |
|
(82 |
) |
|
(78 |
) |
|
(50 |
) |
|
(308 |
) |
|
(209 |
) |
Restructure and asset impairments |
|
(5 |
) |
|
— |
|
|
(22 |
) |
|
(48 |
) |
|
(488 |
) |
Patent license charges |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(128 |
) |
Other |
|
— |
|
|
— |
|
|
6 |
|
|
(8 |
) |
|
5 |
|
Non-GAAP operating
expenses |
$ |
1,014 |
|
$ |
953 |
|
$ |
891 |
|
$ |
3,832 |
|
$ |
3,320 |
|
|
|
|
|
|
|
GAAP operating
income |
$ |
1,521 |
|
$ |
3,004 |
|
$ |
2,955 |
|
$ |
9,702 |
|
$ |
6,283 |
|
Stock-based compensation |
|
131 |
|
|
135 |
|
|
93 |
|
|
501 |
|
|
395 |
|
Inventory accounting policy change to FIFO |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
133 |
|
Change in inventory cost absorption |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
160 |
|
3D XPoint inventory write-down |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
49 |
|
Restructure and asset impairments |
|
5 |
|
|
— |
|
|
22 |
|
|
48 |
|
|
488 |
|
Patent license charges |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
128 |
|
Other |
|
5 |
|
|
5 |
|
|
3 |
|
|
30 |
|
|
31 |
|
Non-GAAP operating
income |
$ |
1,662 |
|
$ |
3,144 |
|
$ |
3,073 |
|
$ |
10,281 |
|
$ |
7,667 |
|
|
|
|
|
|
|
GAAP net
income |
$ |
1,492 |
|
$ |
2,626 |
|
$ |
2,720 |
|
$ |
8,687 |
|
$ |
5,861 |
|
Stock-based compensation |
|
131 |
|
|
135 |
|
|
93 |
|
|
501 |
|
|
395 |
|
Inventory accounting policy change to FIFO |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
133 |
|
Change in inventory cost absorption |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
160 |
|
3D XPoint inventory write-down |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
49 |
|
Restructure and asset impairments |
|
5 |
|
|
— |
|
|
22 |
|
|
48 |
|
|
488 |
|
Patent license charges |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
128 |
|
Amortization of debt discount |
|
6 |
|
|
8 |
|
|
8 |
|
|
31 |
|
|
30 |
|
(Gain) loss on debt repurchases and conversions |
|
— |
|
|
— |
|
|
— |
|
|
83 |
|
|
1 |
|
Other |
|
5 |
|
|
5 |
|
|
3 |
|
|
30 |
|
|
31 |
|
Impact of Idaho income tax reform |
|
— |
|
|
189 |
|
|
— |
|
|
189 |
|
|
— |
|
Estimated tax effects of above and other tax adjustments |
|
(18 |
) |
|
(24 |
) |
|
(68 |
) |
|
(94 |
) |
|
(300 |
) |
Non-GAAP net
income |
$ |
1,621 |
|
$ |
2,939 |
|
$ |
2,778 |
|
$ |
9,475 |
|
$ |
6,976 |
|
|
|
|
|
|
|
GAAP weighted-average
common shares outstanding - Diluted |
|
1,106 |
|
|
1,121 |
|
|
1,138 |
|
|
1,122 |
|
|
1,141 |
|
Adjustment for stock-based compensation |
|
15 |
|
|
15 |
|
|
9 |
|
|
13 |
|
|
10 |
|
Non-GAAP
weighted-average common shares outstanding - Diluted |
|
1,121 |
|
|
1,136 |
|
|
1,147 |
|
|
1,135 |
|
|
1,151 |
|
|
|
|
|
|
|
GAAP diluted earnings
per share |
$ |
1.35 |
|
$ |
2.34 |
|
$ |
2.39 |
|
$ |
7.75 |
|
$ |
5.14 |
|
Effects of the above adjustments |
|
0.10 |
|
|
0.25 |
|
|
0.03 |
|
|
0.60 |
|
|
0.92 |
|
Non-GAAP diluted
earnings per share |
$ |
1.45 |
|
$ |
2.59 |
|
$ |
2.42 |
|
$ |
8.35 |
|
$ |
6.06 |
|
RECONCILIATION OF GAAP TO NON-GAAP
MEASURES, Continued
|
4th Qtr. |
3rd Qtr. |
4th Qtr. |
Year Ended |
|
September 1,2022 |
June 2,2022 |
September 2,2021 |
September 1,2022 |
September 2,2021 |
|
|
|
|
|
|
GAAP net cash provided by operating
activities |
$ |
3,777 |
|
$ |
3,838 |
|
$ |
3,884 |
|
$ |
15,181 |
|
$ |
12,468 |
|
|
|
|
|
|
|
Expenditures for property,
plant, and equipment |
|
(3,613 |
) |
|
(2,578 |
) |
|
(2,015 |
) |
|
(12,067 |
) |
|
(10,030 |
) |
Proceeds from sales of
property, plant, and equipment |
|
30 |
|
|
39 |
|
|
4 |
|
|
117 |
|
|
108 |
|
Payments on equipment purchase
contracts |
|
(9 |
) |
|
(27 |
) |
|
(156 |
) |
|
(141 |
) |
|
(295 |
) |
Amounts funded by
partners |
|
11 |
|
|
38 |
|
|
160 |
|
|
115 |
|
|
502 |
|
Investments in capital
expenditures, net |
|
(3,581 |
) |
|
(2,528 |
) |
|
(2,007 |
) |
|
(11,976 |
) |
|
(9,715 |
) |
Adjusted free cash
flow |
$ |
196 |
|
$ |
1,310 |
|
$ |
1,877 |
|
$ |
3,205 |
|
$ |
2,753 |
|
As of |
September 1,2022 |
June 2,2022 |
September 2,2021 |
|
|
|
|
Cash and short-term investments |
$ |
9,331 |
|
$ |
10,227 |
|
$ |
8,633 |
|
Current and noncurrent
restricted cash |
|
77 |
|
|
104 |
|
|
66 |
|
Long-term marketable
investments |
|
1,647 |
|
|
1,646 |
|
|
1,765 |
|
Current and long-term
debt |
|
(6,906 |
) |
|
(6,963 |
) |
|
(6,776 |
) |
Net cash |
$ |
4,149 |
|
$ |
5,014 |
|
$ |
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;
- 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, 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
OUTLOOK
FQ1-23 |
|
GAAP Outlook |
|
Adjustments |
|
Non-GAAP Outlook |
|
|
|
|
|
|
|
|
Revenue |
$4.25 billion ± $250 million |
|
|
— |
|
|
|
$4.25 billion ± $250 million |
Gross margin |
25.0% ± 2.0% |
|
|
1% |
|
A |
|
26.0% ± 2.0% |
Operating
expenses |
$1.09 billion ± $25 million |
|
$91 million |
|
B |
|
$1.00 billion ± $25 million |
Diluted earnings
(loss) per share(1) |
($0.09) ± $0.10 |
|
|
$0.13 |
|
A, B, C |
|
$0.04 ± $0.10 |
Non-GAAP Adjustments(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A |
Stock-based compensation – cost of goods sold |
|
$ |
33 |
A |
Other – cost of goods sold |
|
|
3 |
B |
Stock-based compensation – research and development |
|
|
52 |
B |
Stock-based compensation – sales, general, and administrative |
|
|
39 |
C |
Tax effects of the above items and other tax adjustments |
|
|
14 |
|
|
|
|
|
|
|
$ |
141 |
|
|
(1) |
GAAP earnings per share based on approximately 1.10 billion diluted
shares and non-GAAP earnings per share based on approximately 1.12
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
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