DGAP-News: Micron Technology, Inc., Reports Results for the First Quarter of Fiscal 2011

Micron Technology, Inc.

22.12.2010 22:19
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BOISE, Idaho, 2010-12-22 22:18 CET (GLOBE NEWSWIRE) –Micron Technology, Inc., (Nasdaq:MU) today announced results of operations for
its first quarter of fiscal 2011, which ended December 2, 2010. For the first
quarter, the company had net income attributable to Micron shareholders of $155
million, or $0.15 per diluted share, on net sales of $2.3 billion. The results
for the first quarter of fiscal 2011 compare to net income of $342 million, or
$0.32 per diluted share, on net sales of $2.5 billion for the fourth quarter of
fiscal 2010, and net income of $204 million, or $0.23 per diluted share, on net
sales of $1.7 billion for the first quarter of fiscal 2010.

In the company–s Memory segment (which excludes Numonyx and other
non-reportable segments), revenue from sales of DRAM products was 19 percent
lower in the first quarter of fiscal 2011 compared to the fourth quarter of
fiscal 2010 due to a 23 percent decrease in average selling prices partially
offset by a 5 percent increase in unit sales volume. Revenue from sales of NAND
Flash products was up slightly in the first quarter of fiscal 2011 compared to
the fourth quarter of fiscal 2010 due to a 20 percent increase in unit sales
volume partially offset by a 15 percent decrease in average selling prices. The
company–s gross margin for its Memory segment was 26 percent in the first
quarter of fiscal 2011 compared to 37 percent in the fourth quarter of fiscal
2010, primarily due to the decreases in average selling prices, partially
offset by decreases in manufacturing costs.

Cash flows from operations for the first quarter of fiscal 2011 were $732
million. During the quarter, the company invested approximately $570 million in
capital expenditures and spent $635 million to retire debt. The company ended
the fiscal quarter with cash and investments of $2.4 billion.

The company will host a conference call today at 2:30 p.m. MST to discuss its
financial results. The call, audio and slides will be available online at
http://investors.micron.com/events.cfm. A webcast replay will be available on
the company–s web site until Wednesday, December 21, 2011. A taped audio replay
of the conference call will also be available at (706) 645-9291 (conference ID:
32359725) beginning at 5:30 p.m. MST today and continuing until 5:30 p.m. MST
on Wednesday, December 29, 2010.

Micron Technology, Inc., is one of the world–s leading providers of advanced
semiconductor solutions. Through its worldwide operations, Micron manufactures
and markets a full range of DRAM, NAND Flash and NOR Flash memory, as well as
other innovative memory technologies, packaging solutions and semiconductor
systems for use in leading-edge computing, consumer, networking, embedded and
mobile products. Micron–s common stock is traded on the NASDAQ under the MU
symbol. To learn more about Micron Technology, Inc., visit www.micron.com.

The Micron Technology, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6950

MICRON TECHNOLOGY, INC.
CONSOLIDATED FINANCIAL SUMMARY
(in millions except per share amounts)1st Qtr. 4th Qtr. 1st Qtr.
Dec. 2, Sep. 2, Dec. 3,
2010 2010 2009
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Net sales $2,252 $2,493 $1,740
Cost of goods sold 1,728 1,712 1,297
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Gross margin 524 781 443
Selling, general and administrative 140 141 97
Research and development 185 197 137
Other operating (income) expense (1) (191) 10 8
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Operating income 390 433 201
Interest income (expense), net (30) (31) (45)
Other non-operating income (expense) (2) (114) (2) 56
Income tax (provision) benefit (3) (48) (25) 7
Equity in net income (losses) of equity method (26) (16) (17)
investees
Net (income) loss attributable to noncontrolling (17) (17) 2
interests
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Net income attributable to Micron $155 $342 $204
=============================

Earnings per share:
Basic $0.16 $0.35 $0.24
Diluted 0.15 0.32 0.23

Number of shares used in per share calculations:
Basic 972.9 970.0 846.3
Diluted 1,031.3 1,142.6 1,000.7

CONSOLIDATED FINANCIAL SUMMARY, Continued

As of
Dec. 2, Sep. 2,
2010 2010
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Cash and short-term investments $2,411 $2,913
Receivables 1,362 1,531
Inventories 1,892 1,770
Total current assets 5,783 6,333
Property, plant and equipment 7,044 6,601
Total assets 14,617 14,693

Accounts payable and accrued expenses 1,823 1,509
Current portion of long-term debt 468 712
Total current liabilities 2,758 2,702
Long-term debt (2) 1,348 1,648

Total Micron shareholders– equity 8,226 8,020
Noncontrolling interests in subsidiaries (4) 1,768 1,796
Total equity 9,994 9,816

Three Months
Ended
Dec. 2, Dec. 3,
2010 2009
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Net cash provided by operating activities $732 $326
Net cash used for investing activities (436) (25)
Net cash used for financing activities (798) (221)

Depreciation and amortization 517 491
Expenditures for property, plant and equipment (465) (62)
Payments on equipment purchase contracts (105) (49)
Net distributions to noncontrolling interests (49) (88)

Noncash equipment acquisitions on contracts payable and 63 176
capital leases
(1) Other operating (income) expense included the following

1st 4th 1st
Qtr. Qtr. Qtr.
Dec. 2, Sep. 2, Dec. 3,
2010 2010 2009
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(Gains) losses on disposals of property, plant and $ — $9 $ (2)
equipment, net
(Gains) losses from changes in currency exchange 7 3 21
rates, net
Samsung patent cross-license agreement (200) — —
Other 2 (2) (11)
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$ (191) $10 $8
==========================
In the first quarter of fiscal 2011, the company entered into a 10-year patent
cross-license agreement with Samsung Electronics Co. Ltd. (–Samsung–). Under
the agreement, Samsung agreed to pay the company $275 million, with $200
million paid on October 8, 2010, $40 million due January 31, 2011, and $35
million due March 31, 2011. The license is a life-of-patents license for
existing patents and applications, and a 10-year term license for all other
patents.

(2) On October 28, 2010, the company entered into separate privately
negotiated purchase and exchange agreements under which it repurchased $91
million in principal amount of its 4.25% Convertible Senior Notes due 2013
(–4.25% Notes–), repurchased $176 million in principal amount of its 1.875%
Convertible Senior Notes due 2014 (–Existing 1.875% Notes–) and exchanged $175
million of the Existing 1.875% Notes for $175 million in aggregate principal
amount of new 1.875% Convertible Senior Notesdue 2027 (–New 1.875% Notes–).

The New 1.875% Notes are convertible under certain circumstances, at the
holder–s option, at an initial conversion rate of 91.7431 common shares per
$1,000 principal amount. Upon conversion, holders will receive cash up to the
principal amount, and any excess value will be delivered, at the company–s
election, in cash, common stock or a combination of cash and common stock.
Holders of the New 1.875% Notes have an option to require the company to
purchase the notes on June 1, 2017, and in certain other circumstances, at a
price equal to 100 percent of the principal amount of notes plus accrued and
unpaid interest.

In connection with the repurchase transactions, the aggregate carrying amount
of debt (including unamortized discount and issuance costs) of $232 million was
redeemed for $328 million in cash (including fees). As a result of this loss on
the repurchase transactions and the effect of the exchange, the company
recognized a non-operating loss of $111 million in the first quarter of fiscal
2011. Including the effects of the repurchase and exchange transactions and
other scheduled repayments, the company reduced its debt by a net amount of
$544 million during the first quarter of fiscal 2011.

Other non-operating income in the first quarter of fiscal 2010 included a gain
of $56 million recognized in connection with an issuance of common shares in a
public offering by Inotera Memories, Inc. (–Inotera–) – an investment accounted
for by the company under the equity method. As a result of the issuance, the
company–s interest in Inotera decreased from 35.5% to 29.8%.

(3) Income taxes in the first quarter of fiscal 2011 included a charge of $33
million in connection with the Samsung agreement. Taxes in fiscal 2011 and 2010
primarily reflect taxes on the company–s non-U.S. operations and U.S.
alternative minimum tax. The company has a valuation allowance for a
substantial portion of its net deferred tax asset associated with its U.S.
operations. Taxes attributable to U.S. operations in fiscal 2011 and 2010 were
substantially offset by changes in the valuation allowance.

(4) On December 17, 2010, the company acquired Hewlett-Packard Company–s
interest in TECH Semiconductor Singapore Pte. Ltd., (–TECH–) a consolidated
joint venture of the company, for $38 million. As a result, the company–s
ownership interest in TECH increased from approximately 87.1% to 90.3%.

CONTACT: Micron Technology, Inc.
Investor Relations
Kipp A. Bedard
(208) 368-4465
kbedard@micron.com
Media Relations
Daniel Francisco
(208) 368-5584
dfrancisco@micron.com
News Source: NASDAQ OMX

22.12.2010 Dissemination of a Corporate News, transmitted by DGAP –
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: Micron Technology, Inc.

United States
Phone:
Fax:
E-mail:
Internet:
ISIN: US5951121038
WKN:

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