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Micron Technology, Inc., Reports Results For The Fourth Quarter And 2012 Fiscal Year

Stocks in this article: MU

Revenues from sales of NAND Flash products were 12 percent lower in the fourth quarter of fiscal 2012 compared to the third quarter of fiscal 2012, due to an 11 percent decrease in sales volume. The decrease in sales volume was due primarily to a one-time increase in volume in the third quarter or fiscal 2012 from the sale of work in process inventories resulting from the restructuring of the IM Flash joint venture with Intel Corporation. Revenues from sales of DRAM products in the fourth quarter of fiscal 2012 were 9 percent lower compared to the third quarter of fiscal 2012 due to a 9 percent decrease in sales volume. Sales of NOR Flash products were approximately 12 percent of total net sales for the fourth quarter of fiscal 2012. The company's consolidated gross margin of 11 percent in the fourth quarter of fiscal 2012 was essentially unchanged from the third quarter of fiscal 2012. Improvements in margin from sales of NAND Flash and NOR Flash products were offset by declines in margins from sales of DRAM products.

Cash flows from operations for the fourth quarter of fiscal 2012 were $450 million. During the fourth quarter of fiscal 2012, the company invested $372 million in capital expenditures and ended the quarter with cash and investments of $2.9 billion. For all of fiscal 2012, the company invested approximately $1.9 billion in capital expenditures.

The company will host a conference call Thursday, September 27 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 website until October 4, 2013. A taped audio replay of the conference call will also be available at (404) 537-3406 (conference number: 30042409) beginning at 5:30 p.m. MDT, Thursday, September 27, 2012 and continuing until 5:30 p.m. MDT, Thursday, October 4, 2012.

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)
 
   4th Qtr.  3rd Qtr.  4th Qtr. Year Ended
   Aug. 30,  May 31,  Sep. 1,   Aug. 30,   Sep. 1,
   2012  2012  2011   2012   2011
           
Net sales  $ 1,963 $ 2,172 $ 2,140 $ 8,234 $ 8,788
Cost of goods sold  1,744  1,938  1,819  7,266  7,030
 Gross margin  219  234  321  968  1,758
Selling, general and administrative  139  156  155  620  592
Research and development   235  231  209  918  791
Other operating (income) expense, net (1)  (15)  38  8  48  (380)
 Operating income (loss)  (140)  (191)  (51)  (618)  755
Interest income (expense), net (2)  (52)  (53)  (28)  (171)  (101)
Other non-operating income (expense), net (3)  (4)  1  1  35  (103)
Income tax (provision) benefit (4) (14) 38 (16) 17 (203)
Equity in net losses of equity method investees (5) (32)  (115)  (40)  (294)  (158)
Net income attributable to noncontrolling interests  (1)  --  (1)  (1)  (23)
 Net income (loss) attributable to Micron $ (243) $ (320) $ (135) $ (1,032) $ 167
           
Earnings (loss) per share:          
 Basic $ (0.24) $ (0.32) $ (0.14) $ (1.04) $ 0.17
 Diluted  (0.24)  (0.32)  (0.14)  (1.04)  0.17
           
Number of shares used in per share calculations:          
 Basic  1,013.1  987.3  992.2  991.2  988.0
 Diluted  1,013.1  987.3  992.2  991.2  1,007.5
 
CONSOLIDATED FINANCIAL SUMMARY, Continued
 
  As of
   Aug. 30,  May 31,  Sep. 1,
   2012  2012  2011
       
Cash and short-term investments $ 2,559 $ 2,325 $ 2,160
Receivables  1,289  1,333  1,497
Inventories  1,812  1,894  2,080
Total current assets  5,758  5,630  5,832
Long-term marketable investments  374  361  52
Property, plant and equipment, net  7,103  7,158  7,555
Total assets  14,328  14,316  14,752
       
Accounts payable and accrued expenses  1,641  1,547  1,830
Current portion of long-term debt  224  262  140
Total current liabilities  2,243  2,177  2,480
Long-term debt (2)  3,038  2,936  1,861
       
Total Micron shareholders' equity  7,700  7,811  8,470
Noncontrolling interests in subsidiaries (6)  717  675  1,382
Total equity  8,417  8,486  9,852
   
   
  Year Ended
    Aug. 30,   Sep. 1,
    2012   2011
     
Net cash provided by operating activities $ 2,114 $ 2,484
Net cash used for investing activities  (2,312)  (2,042)
Net cash provided by (used for) financing activities  497  (1,195)
     
Depreciation and amortization  2,222  2,162
Expenditures for property, plant and equipment  (1,699)  (2,550)
Payments on equipment purchase contracts  (172)  (322)
Net contributions from (distributions to/acquisitions of) noncontrolling interests   (660)   (376)
     
Noncash equipment acquisitions on contracts payable and capital leases  897  469

(1)   Other operating (income) expense consisted of the following:

 
   4th Qtr.  3rd Qtr.  4th Qtr. Year Ended
   Aug. 30,  May 31,  Sep. 1,   Aug. 30,   Sep. 1,
   2012  2012  2011   2012   2011
           
(Gain) loss from changes in currency exchange rates $ (8) $ 1 $ -- $ 6 $ 6
(Gain) loss on disposition of property, plant and equipment  (5)  4  6  5  (17)
Samsung patent cross-license agreement  --  --  --  --  (275)
Gain from disposition of Japan Fab  --  --  --  --  (54)
Restructure  1  --  4  7  (21)
Other  (3)  33  (2)  30  (19)
  $ (15) $ 38 $ 8 $ 48 $ (380)

Other operating expense in the third quarter of fiscal 2012 in the table above includes $17 million from the termination of a lease with IM Flash Technologies, LLC ("IMFT"), a joint venture of the company, and a charge of $10 million to write off a receivable in connection with resolution of certain prior year tax matters. In the first quarter of fiscal 2011, the company entered into a 10-year patent cross-license agreement with Samsung Electronics Co. Ltd. ("Samsung"). Other operating income for fiscal 2011 included gains of $275 million for cash received from Samsung under the agreement. The agreement is a life-of-patents license for existing patents and applications, and a 10-year term license for all other patents. In the third quarter of fiscal 2011, the company sold its wafer fabrication facility in Japan (the "Japan Fab") to Tower Semiconductor Ltd. ("Tower"). Under the arrangement, Tower paid $40 million in cash, approximately 1.3 million ordinary shares of Tower (subsequent to a 1 for 15 reverse stock split on August 6, 2012), and $20 million in installment payments. The company recorded a gain of $54 million (net of transaction costs of $3 million) in connection with the sale of the Japan Fab. Other operating income in fiscal 2011 included $8 million for receipts from the U.S. government in connection with anti-dumping tariffs.

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