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

Micron Technology, Inc.

23.03.2011 21:47
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BOISE, Idaho, 2011-03-23 21:47 CET (GLOBE NEWSWIRE) –Micron Technology, Inc., (Nasdaq:MU) today announced results of operations for
its second quarter of fiscal 2011, which ended March 3, 2011. For the second
quarter, the company had net income attributable to Micron shareholders of $72
million, or $0.07 per diluted share, on net sales of $2.3 billion. The results
for the second quarter of fiscal 2011 compare to net income of $155 million, or
$0.15 per diluted share, on net sales of $2.3 billion for the first quarter of
fiscal 2011, and net income of $365 million, or $0.39 per diluted share, on net
sales of $2.0 billion for the second quarter of fiscal 2010.

Revenue from sales of DRAM products was 6 percent lower in the second quarter
of fiscal 2011 compared to the first quarter of fiscal 2011 due to a 23 percent
decrease in average selling prices largely offset by an increase in volume.
Revenue from sales of NAND Flash products was 8 percent higher in the second
quarter of fiscal 2011 compared to the first quarter of fiscal 2011 due to an
increase in volume partially offset by a 4 percent decrease in average selling
prices. Revenue from sales of NOR Flash products was 7 percent lower in the
second quarter of fiscal 2011 compared to the first quarter of fiscal 2011 due
primarily to a decrease in average selling prices. The company–s consolidated
gross margin was 19 percent in the second quarter of fiscal 2011 and was lower
compared to its gross margin of 23 percent in the first quarter of fiscal 2011
due primarily to the decreases in average selling prices partially offset by
decreases in manufacturing costs.

Cash flows from operations for the second quarter of fiscal 2011 were $809
million. During the second quarter of fiscal 2011, the company invested $840
million in capital expenditures. In addition, during the second quarter, the
company completed the acquisition of the remaining noncontrolling interests in
TECH in two cash transactions aggregating $159 million. The company ended the
second fiscal quarter with cash and short-term investments of $2.2 billion.

The company will host a conference call today at 2:30 p.m. MDT 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 March 23, 2012. A taped audio replay of the
conference call will also be available at (706) 645-9291 (conference ID:
52960648) beginning at 5:30 p.m. MDT today and continuing until 5:30 p.m. MDT
on Wednesday, March 30, 2011.

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)

2nd Qtr. 1st Qtr. 2nd Qtr. Six Months Ended
Mar. 3, Dec. 2, Mar. 4, Mar. 3, Mar. 4,
2011 2010 2010 2011 2010
———————————————–

Net sales $ 2,257 $ 2,252 $ 1,961 $ 4,509 $ 3,701
Cost of goods sold 1,822 1,728 1,319 3,550 2,616
———————————————–
Gross margin 435 524 642 959 1,085
Selling, general and 146 140 100 286 197
administrative
Research and development 186 185 148 371 285
Other operating (income) expense (76) (191) (21) (267) (13)
(1)
———————————————–
Operating income 179 390 415 569 616
Interest income (expense), net (21) (30) (44) (51) (89)
Other non-operating income — (114) (1) (114) 55
(expense) (2)
Income tax (provision) benefit (35) (48) (4) (83) 3
(3)
Equity in net income (losses) of (48) (26) 13 (74) (4)
equity
method investees
Net (income) loss attributable (3) (17) (14) (20) (12)
to
noncontrolling interests
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Net income attributable to $ 72 $ 155 $ 365 $ 227 $ 569
Micron
===============================================

Earnings per share:
Basic $ 0.07 $ 0.16 $ 0.43 $ 0.23 $ 0.67
Diluted 0.07 0.15 0.39 0.22 0.61

Number of shares used in per
share calculations:
Basic 988.1 972.9 847.6 980.5 847.0
Diluted 1,037.3 1,031.3 1,005.3 1,034.5 1,003.1

CONSOLIDATED FINANCIAL SUMMARY, Continued
As of
Mar. 3, Dec. 2, Sep. 2,
2011 2010 2010
————————–

Cash and short-term investments $ 2,184 $ 2,411 $ 2,913
Receivables 1,393 1,362 1,531
Inventories 1,957 1,892 1,770
Total current assets 5,654 5,783 6,333
Property, plant and equipment 7,055 7,044 6,601
Total assets 14,398 14,617 14,693

Accounts payable and accrued expenses 1,815 1,823 1,509
Current portion of long-term debt 420 468 712
Total current liabilities 2,590 2,758 2,702
Long-term debt (2) 1,320 1,348 1,648

Total Micron shareholders– equity 8,462 8,226 8,020
Noncontrolling interests in subsidiaries (4) 1,500 1,768 1,796
Total equity 9,962 9,994 9,816

Six Months Ended
Mar. 3, Mar. 4,
2011 2010
—————–

Net cash provided by operating activities $ 1,541 $ 1,130
Net cash used for investing activities (1,238) (263)
Net cash used for financing activities (1,032) (482)

Depreciation and amortization 1,033 977
Expenditures for property, plant and equipment (1,189) (155)
Payments on equipment purchase contracts (221) (136)
Net distributions to noncontrolling interests (95) (172)

Noncash equipment acquisitions on contracts payable 187 232
and capital leases
(1) Other operating (income) expense consisted of the following:

2nd Qtr. 1st Qtr. 2nd Qtr. Six Months Ended
Mar. 3, Dec. 2, Mar. 4, Mar. 3, Mar. 4,
2011 2010 2010 2011 2010
————————————————

Samsung patent cross-license $ (40) $ (200) $ — $ (240) $ —
agreement
Restructure (17) 4 (1) (13) (2)
(Gains) losses on disposals of (16) — (7) (16) (9)
property,
plant and equipment
(Gains) losses from changes in — 7 (2) 7 19
currency
exchange rates
Other (3) (2) (11) (5) (21)
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$ (76) $ (191) $ (21) $ (267) $ (13)
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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, of which $200
million was paid on October 8, 2010, $40 million was paid on January 28, 2011,
and $35 million is 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.

Other operating income in the second quarter of fiscal 2010 included $11
million of receipts from the U.S. government in connection with anti-dumping
tariffs.

(2) In the first quarter of fiscal 2011, 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 Notes due 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 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 $620
million during the first six months of fiscal 2011.

Other non-operating income in the first six months of fiscal 2010 included a
gain of $56 million recognized in the first quarter in connection with the
August 2009 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, and at the time of, the issuance, the company–s
interest in Inotera decreased from 35.5% to 29.8%.

(3) Income tax provision in the second quarter of fiscal 2011 included a
charge to reduce net deferred tax assets by $19 million in connection with a
change in tax rates. Income tax provision in the second and first quarters of
fiscal 2011 included charges of $7 million and $33 million, respectively, in
connection with the Samsung agreement. Remaining taxes in fiscal 2011 and 2010
primarily reflected 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 assets 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 Singapore
(Private) Limited–s interest in TECH Semiconductor Singapore Pte. Ltd.,
(–TECH–), a consolidated joint venture of the company, for $38 million. On
January 28, 2011, the company acquired Canon Inc.–s interest in TECH for $121
million. In connection therewith, noncontrolling interests in subsidiaries was
reduced by $226 million and additional capital was increased by $67 million. As
a result of these transactions, the company–s ownership interest in TECH
increased from approximately 87.1% to 100%.

CONTACT: Kipp A. Bedard
Investor Relations
kbedard@micron.com
(208) 368-4465

Daniel Francisco
Media Relations
dfrancisco@micron.com
(208) 368-5584
News Source: NASDAQ OMX

23.03.2011 Dissemination of a Corporate News, transmitted by DGAP –
a company of EquityStory AG.
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Language: English
Company: Micron Technology, Inc.

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

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