Quarterly Financial Results | ||||||||||||
(in millions, except per share amounts) |
GAAP(1)
|
Non-GAAP(2)
| ||||||||||
FQ2-24
|
FQ1-24
|
FQ2-23
| FQ2-24 | FQ1-24 | FQ2-23 | |||||||
Revenue | $ | 5,824 | $ | 4,726 | $ | 3,693 | $ | 5,824 | $ | 4,726 | $ | 3,693 |
Gross margin | 1,079 | (35) | (1,206) | 1,163 | 37 | (1,161) | ||||||
percent of revenue | 18.5 | % | (0.7 | %) | (32.7 | %) | 20.0 | % | 0.8 | % | (31.4 | %) |
Operating expenses | 888 | 1,093 | 1,097 | 959 | 992 | 916 | ||||||
Operating income (loss) | 191 | (1,128) | (2,303) | 204 | (955) | (2,077) | ||||||
percent of revenue | 3.3 | % | (23.9 | %) | (62.4 | %) | 3.5 | % | (20.2 | %) | (56.2 | %) |
Net income (loss) | 793 | (1,234) | (2,312) | 476 | (1,048) | (2,081) | ||||||
Diluted earnings (loss) per share | 0.71 | (1.12) | (2.12) | 0.42 | (0.95) | (1.91) |
FQ3-24
|
GAAP(1) Outlook
|
Non-GAAP(2) Outlook
|
Revenue
| $6.60 billion ± $200 million | $6.60 billion ± $200 million |
Gross margin
| 25.5% ± 1.5% | 26.5% ± 1.5% |
Operating expenses
| $1.11 billion ± $15 million | $990 million ± $15 million |
Diluted earnings per share
| $0.17 ± $0.07 | $0.45 ± $0.07 |
2nd Qtr.
|
1st Qtr.
|
2nd Qtr.
| Six months ended | |||||||
February 29, 2024 |
November 30, 2023 |
March 2, 2023 |
February 29, 2024 |
March 2, 2023 | ||||||
Revenue | $ | 5,824 | $ | 4,726 | $ | 3,693 | $ | 10,550 | $ | 7,778 |
Cost of goods sold | 4,745 | 4,761 | 4,899 | 9,506 | 8,091 | |||||
Gross margin | 1,079 | (35) | (1,206) | 1,044 | (313) | |||||
Research and development | 832 | 845 | 788 | 1,677 | 1,637 | |||||
Selling, general, and administrative | 280 | 263 | 231 | 543 | 482 | |||||
Restructure and asset impairments | - | - | 86 | - | 99 | |||||
Other operating (income) expense, net | (224) | (15) | (8) | (239) | (19) | |||||
Operating income (loss) | 191 | (1,128) | (2,303) | (937) | (2,512) | |||||
Interest income | 130 | 132 | 119 | 262 | 207 | |||||
Interest expense | (144) | (132) | (89) | (276) | (140) | |||||
Other non-operating income (expense), net | (7) | (27) | 2 | (34) | (2) | |||||
170 | (1,155) | (2,271) | (985) | (2,447) | ||||||
Income tax (provision) benefit | 622 | (73) | (54) | 549 | (62) | |||||
Equity in net income (loss) of equity method investees | 1 | (6) | 13 | (5) | 2 | |||||
Net income (loss) | $ | 793 | $ | (1,234) | $ | (2,312) | $ | (441) | $ | (2,507) |
Earnings (loss) per share | ||||||||||
Basic | $ | 0.72 | $ | (1.12) | $ | (2.12) | $ | (0.40) | $ | (2.30) |
Diluted | 0.71 | (1.12) | (2.12) | (0.40) | (2.30) | |||||
Number of shares used in per share calculations | ||||||||||
Basic | 1,104 | 1,100 | 1,091 | 1,102 | 1,091 | |||||
Diluted | 1,114 | 1,100 | 1,091 | 1,102 | 1,091 |
As of |
February 29, 2024 |
November 30, 2023 |
August 31, 2023 | |||
Assets | ||||||
Cash and equivalents | $ | 8,016 | $ | 8,075 | $ | 8,577 |
Short-term investments | 990 | 973 | 1,017 | |||
Receivables | 4,296 | 2,943 | 2,443 | |||
Inventories | 8,443 | 8,276 | 8,387 | |||
Other current assets | 1,690 | 791 | 820 | |||
Total current assets | 23,435 | 21,058 | 21,244 | |||
Long-term marketable investments | 627 | 720 | 844 | |||
Property, plant, and equipment | 37,587 | 37,677 | 37,928 | |||
Operating lease right-of-use assets | 642 | 648 | 666 | |||
Intangible assets | 414 | 416 | 404 | |||
Deferred tax assets | 664 | 781 | 756 | |||
Goodwill | 1,150 | 1,150 | 1,150 | |||
Other noncurrent assets | 1,199 | 1,326 | 1,262 | |||
Total assets | $ | 65,718 | $ | 63,776 | $ | 64,254 |
Liabilities and equity | ||||||
Accounts payable and accrued expenses | $ | 4,680 | $ | 3,946 | $ | 3,958 |
Current debt | 344 | 908 | 278 | |||
Other current liabilities | 1,235 | 1,108 | 529 | |||
Total current liabilities | 6,259 | 5,962 | 4,765 | |||
Long-term debt | 13,378 | 12,597 | 13,052 | |||
Noncurrent operating lease liabilities | 593 | 601 | 603 | |||
Noncurrent unearned government incentives | 662 | 705 | 727 | |||
Other noncurrent liabilities | 956 | 1,026 | 987 | |||
Total liabilities | 21,848 | 20,891 | 20,134 | |||
Commitments and contingencies | ||||||
Shareholders' equity | ||||||
Common stock | 125 | 124 | 124 | |||
Additional capital | 11,564 | 11,217 | 11,036 | |||
Retained earnings | 39,997 | 39,356 | 40,824 | |||
Treasury stock | (7,552) | (7,552) | (7,552) | |||
Accumulated other comprehensive income (loss) | (264) | (260) | (312) | |||
Total equity | 43,870 | 42,885 | 44,120 | |||
Total liabilities and equity | $ | 65,718 | $ | 63,776 | $ | 64,254 |
Six months ended |
February 29, 2024 |
March 2, 2023 | ||
Cash flows from operating activities | ||||
Net income (loss) | $ | (441) | $ | (2,507) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
| ||||
Depreciation expense and amortization of intangible assets | 3,839 | 3,863 | ||
Stock-based compensation | 401 | 303 | ||
Provision to write-down inventories to net realizable value
| - | 1,430 | ||
Change in operating assets and liabilities:
| ||||
Receivables | (1,759) | 2,910 | ||
Inventories | (57) | (2,896) | ||
Other current assets
| (799) | 4 | ||
Accounts payable and accrued expenses | 573 | (1,144) | ||
Other current liabilities
| 706 | (638) | ||
Other | 157 | (39) | ||
Net cash provided by operating activities | 2,620 | 1,286 | ||
Cash flows from investing activities | ||||
Expenditures for property, plant, and equipment | (3,180) | (4,654) | ||
Purchases of available-for-sale securities | (465) | (293) | ||
Proceeds from maturities and sales of available-for-sale securities
| 726 | 773 | ||
Proceeds from government incentives | 234 | 64 | ||
Other | (24) | (71) | ||
Net cash provided by (used for) investing activities | (2,709) | (4,181) | ||
Cash flows from financing activities | ||||
Repayments of debt | (1,101) | (53) | ||
Payments of dividends to shareholders | (256) | (252) | ||
Payments on equipment purchase contracts | (82) | (76) | ||
Repurchases of common stock - repurchase program | - | (425) | ||
Proceeds from issuance of debt | 999 | 5,221 | ||
Other | (18) | 19 | ||
Net cash provided by (used for) financing activities | (458) | 4,434 | ||
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash
| (8) | 9 | ||
Net increase (decrease) in cash, cash equivalents, and restricted cash | (555) | 1,548 | ||
Cash, cash equivalents, and restricted cash at beginning of period | 8,656 | 8,339 | ||
Cash, cash equivalents, and restricted cash at end of period | $ | 8,101 | $ | 9,887 |
2nd Qtr. | 1st Qtr. | 2nd Qtr. | Six months ended | |||||||
February 29, 2024 |
November 30, 2023 |
March 2, 2023 |
February 29, 2024 |
March 2, 2023 | ||||||
Provision to write down inventory to NRV | $ | - | $ | - | $ | (1,430) | $ | - | $ | (1,430) |
Lower costs from sale of inventory written down in prior periods
| 382 | 605 | - | 987 | - | |||||
$ | 382 | $ | 605 | $ | (1,430) | $ | 987 | $ | (1,430) |
2nd Qtr. | 1st Qtr. | 2nd Qtr. | ||||
February 29, 2024 |
November 30, 2023 |
March 2, 2023 | ||||
GAAP gross margin | $ | 1,079 | $ | (35) | $ | (1,206) |
Stock-based compensation | 80 | 67 | 41 | |||
Other | 4 | 5 | 4 | |||
Non-GAAP gross margin | $ | 1,163 | $ | 37 | $ | (1,161) |
GAAP operating expenses | $ | 888 | $ | 1,093 | $ | 1,097 |
Stock-based compensation | (129) | (115) | (95) | |||
Restructure and asset impairments | - | - | (86) | |||
Patent cross-license agreement gain | 200 | - | - | |||
Other | - | 14 | - | |||
Non-GAAP operating expenses | $ | 959 | $ | 992 | $ | 916 |
GAAP operating income (loss) | $ | 191 | $ | (1,128) | $ | (2,303) |
Stock-based compensation | 209 | 182 | 136 | |||
Restructure and asset impairments | - | - | 86 | |||
Patent cross-license agreement gain | (200) | - | - | |||
Other | 4 | (9) | 4 | |||
Non-GAAP operating income (loss) | $ | 204 | $ | (955) | $ | (2,077) |
GAAP net income (loss)
| $ | 793 | $ | (1,234) | $ | (2,312) |
Stock-based compensation | 209 | 182 | 136 | |||
Restructure and asset impairments | - | - | 86 | |||
Patent cross-license agreement gain | (200) | - | - | |||
Other | 2 | (10) | 8 | |||
Estimated tax effects of above and other tax adjustments(1)
| (328) | 14 | 1 | |||
Non-GAAP net income (loss) | $ | 476 | $ | (1,048) | $ | (2,081) |
GAAP weighted-average common shares outstanding - Diluted
| 1,114 | 1,100 | 1,091 | |||
Adjustment for stock-based compensation
| 20 | - | - | |||
Non-GAAP weighted-average common shares outstanding - Diluted
| 1,134 | 1,100 | 1,091 | |||
GAAP diluted earnings (loss) per share
| $ | 0.71 | $ | (1.12) | $ | (2.12) |
Effects of the above adjustments
| (0.29) | 0.17 | 0.21 | |||
Non-GAAP diluted earnings (loss) per share
| $ | 0.42 | $ | (0.95) | $ | (1.91) |
2nd Qtr. | 1st Qtr. | 2nd Qtr. | ||||
February 29, 2024 |
November 30, 2023 |
March 2, 2023 | ||||
GAAP net cash provided by operating activities
| $ | 1,219 | $ | 1,401 | $ | 343 |
Expenditures for property, plant, and equipment
| (1,384) | (1,796) | (2,205) | |||
Payments on equipment purchase contracts
| (26) | (56) | (29) | |||
Proceeds from sales of property, plant, and equipment | 13 | 33 | 17 | |||
Proceeds from government incentives
| 149 | 85 | 62 | |||
Investments in capital expenditures, net | (1,248) | (1,734) | (2,155) | |||
Adjusted free cash flow
| $ | (29) | $ | (333) | $ | (1,812) |
FQ3-24
| GAAP Outlook | Adjustments | Non-GAAP Outlook | |
Revenue
|
$6.60 billion ± $200 million
| - |
$6.60 billion ± $200 million
| |
Gross margin
|
25.5% ± 1.5%
|
1.0%
| A |
26.5% ± 1.5%
|
Operating expenses
|
$1.11 billion ± $15 million
|
$123 million
| B |
$990 million ± $15 million
|
Diluted earnings per share(1)
|
$0.17 ± $0.07
|
$0.28
| A, B, C |
$0.45 ± $0.07
|
Non-GAAP Adjustments
(in millions)
| |||
A
|
Stock-based compensation - cost of goods sold
| $ | 78 |
A
|
Other - cost of goods sold
| 4 | |
B
|
Stock-based compensation - research and development
| 76 | |
B
|
Stock-based compensation - sales, general, and administrative
| 47 | |
C
| Tax effects of the above items and other tax adjustments | 107 | |
$ | 312 |
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Micron Technology Inc. published this content on 20 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 March 2024 20:03:02 UTC.