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Micron Technology, Inc. Reports Results for the Fourth Quarter and Full Year of Fiscal 2023
ソース: Nasdaq GlobeNewswire / 27 9 2023 15:01:56 America/Chicago
BOISE, Idaho, Sept. 27, 2023 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its fourth quarter and full year of fiscal 2023, which ended August 31, 2023.
Fiscal Q4 2023 highlights
- Revenue of $4.01 billion versus $3.75 billion for the prior quarter and $6.64 billion for the same period last year
- GAAP net loss of $1.43 billion, or $1.31 per diluted share
- Non-GAAP net loss of $1.18 billion, or $1.07 per diluted share
- Operating cash flow of $249 million versus $24 million for the prior quarter and $3.78 billion for the same period last year
Fiscal 2023 highlights
- Revenue of $15.54 billion versus $30.76 billion for the prior year
- GAAP net loss of $5.83 billion, or $5.34 per diluted share
- Non-GAAP net loss of $4.86 billion, or $4.45 per diluted share
- Operating cash flow of $1.56 billion versus $15.18 billion for the prior year
“During fiscal 2023, amid a challenging environment for the memory and storage industry, Micron sustained technology leadership, launched a significant number of leading-edge products, and took decisive actions on supply and cost,” said Micron Technology President and CEO Sanjay Mehrotra. “Our 2023 performance positions us well as a market recovery takes shape in 2024, driven by increasing demand and disciplined supply. We look forward to record industry TAM revenue in 2025 as AI proliferates from the data center to the edge.”
Quarterly Financial Results (in millions, except per share amounts) GAAP(1) Non-GAAP(2) FQ4-23 FQ3-23 FQ4-22 FQ4-23 FQ3-23 FQ4-22 Revenue $ 4,010 $ 3,752 $ 6,643 $ 4,010 $ 3,752 $ 6,643 Gross margin (435 ) (668 ) 2,622 (366 ) (603 ) 2,676 percent of revenue (10.8 %) (17.8 %) 39.5 % (9.1 %) (16.1 %) 40.3 % Operating expenses 1,037 1,093 1,101 842 866 1,014 Operating income (loss) (1,472 ) (1,761 ) 1,521 (1,208 ) (1,469 ) 1,662 percent of revenue (36.7 %) (46.9 %) 22.9 % (30.1 %) (39.2 %) 25.0 % Net income (loss) (1,430 ) (1,896 ) 1,492 (1,177 ) (1,565 ) 1,621 Diluted earnings (loss) per share (1.31 ) (1.73 ) 1.35 (1.07 ) (1.43 ) 1.45 Annual Financial Results (in millions, except per share amounts) GAAP(1) Non-GAAP(2) FY 23 FY 22 FY 23 FY 22 Revenue $ 15,540 $ 30,758 $ 15,540 $ 30,758 Gross margin (1,416 ) 13,898 (1,196 ) 14,113 percent of revenue (9.1 %) 45.2 % (7.7 %) 45.9 % Operating expenses 4,329 4,196 3,623 3,832 Operating income (loss) (5,745 ) 9,702 (4,819 ) 10,281 percent of revenue (37.0 %) 31.5 % (31.0 %) 33.4 % Net income (loss) (5,833 ) 8,687 (4,862 ) 9,475 Diluted earnings (loss) per share (5.34 ) 7.75 (4.45 ) 8.35 Investments in capital expenditures, net(2) were $1.01 billion for the fourth quarter of 2023 and $7.01 billion for the full year of 2023, which resulted in adjusted free cash flows(2) of negative $758 million for the fourth quarter of 2023 and negative $5.45 billion for the full year of 2023. Micron ended the year with cash, marketable investments, and restricted cash of $10.52 billion. On September 27, 2023, Micron’s Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on October 25, 2023, to shareholders of record as of the close of business on October 10, 2023.
Business Outlook
The following table presents Micron’s guidance for the first quarter of 2024:
FQ1-24 GAAP(1) Outlook Non-GAAP(2) Outlook Revenue $4.40 billion ± $200 million $4.40 billion ± $200 million Gross margin (6.0%) ± 2.0% (4.0%) ± 2.0% Operating expenses $1.01 billion ± $15 million $900 million ± $15 million Diluted earnings (loss) per share ($1.24) ± $0.07 ($1.07) ± $0.07 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 Wednesday, September 27, 2023 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.
© 2023 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, 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 August 31,
2023June 1,
2023September 1,
2022August 31,
2023September 1,
2022Revenue $ 4,010 $ 3,752 $ 6,643 $ 15,540 $ 30,758 Cost of goods sold 4,445 4,420 4,021 16,956 16,860 Gross margin (435 ) (668 ) 2,622 (1,416 ) 13,898 Research and development 719 758 839 3,114 3,116 Selling, general, and administrative 219 219 280 920 1,066 Restructure and asset impairments 4 68 5 171 48 Other operating (income) expense, net 95 48 (23 ) 124 (34 ) Operating income (loss) (1,472 ) (1,761 ) 1,521 (5,745 ) 9,702 Interest income 134 127 54 468 96 Interest expense (129 ) (119 ) (45 ) (388 ) (189 ) Other non-operating income (expense), net 9 — 23 7 (38 ) (1,458 ) (1,753 ) 1,553 (5,658 ) 9,571 Income tax (provision) benefit 24 (139 ) (56 ) (177 ) (888 ) Equity in net income (loss) of equity method investees 4 (4 ) (5 ) 2 4 Net income (loss) $ (1,430 ) $ (1,896 ) $ 1,492 $ (5,833 ) $ 8,687 Earnings (loss) per share Basic $ (1.31 ) $ (1.73 ) $ 1.36 $ (5.34 ) $ 7.81 Diluted (1.31 ) (1.73 ) 1.35 (5.34 ) 7.75 Number of shares used in per share calculations Basic 1,095 1,094 1,097 1,093 1,112 Diluted 1,095 1,094 1,106 1,093 1,122 MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)As of August 31,
2023June 1,
2023September 1,
2022Assets Cash and equivalents $ 8,577 $ 9,298 $ 8,262 Short-term investments 1,017 1,054 1,069 Receivables 2,443 2,429 5,130 Inventories 8,387 8,238 6,663 Other current assets 820 715 657 Total current assets 21,244 21,734 21,781 Long-term marketable investments 844 973 1,647 Property, plant, and equipment 37,928 38,727 38,549 Operating lease right-of-use assets 666 655 678 Intangible assets 404 410 421 Deferred tax assets 756 708 702 Goodwill 1,150 1,252 1,228 Other noncurrent assets 1,262 1,221 1,277 Total assets $ 64,254 $ 65,680 $ 66,283 Liabilities and equity Accounts payable and accrued expenses $ 3,958 $ 4,177 $ 6,090 Current debt 278 259 103 Other current liabilities 529 668 1,346 Total current liabilities 4,765 5,104 7,539 Long-term debt 13,052 12,986 6,803 Noncurrent operating lease liabilities 603 603 610 Noncurrent unearned government incentives 727 632 589 Other noncurrent liabilities 987 950 835 Total liabilities 20,134 20,275 16,376 Commitments and contingencies Shareholders’ equity Common stock 124 124 123 Additional capital 11,036 10,782 10,197 Retained earnings 40,824 42,391 47,274 Treasury stock (7,552 ) (7,552 ) (7,127 ) Accumulated other comprehensive income (loss) (312 ) (340 ) (560 ) Total equity 44,120 45,405 49,907 Total liabilities and equity $ 64,254 $ 65,680 $ 66,283 MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)For the year ended August 31,
2023September 1,
2022Cash flows from operating activities Net income (loss) $ (5,833 ) $ 8,687 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation expense and amortization of intangible assets 7,756 7,116 Provision to write down inventories to net realizable value 1,831 — Stock-based compensation 596 514 Goodwill impairment 101 — Restructure and asset impairments 11 44 Loss on debt repurchases and conversions — 83 Change in operating assets and liabilities: Receivables 2,763 190 Inventories (3,555 ) (2,179 ) Accounts payable and accrued expenses (2,104 ) 744 Other (7 ) (18 ) Net cash provided by operating activities 1,559 15,181 Cash flows from investing activities Expenditures for property, plant, and equipment (7,676 ) (12,067 ) Purchases of available-for-sale securities (723 ) (1,770 ) Proceeds from maturities of available-for-sale securities 1,566 1,321 Proceeds from government incentives 710 115 Proceeds from sales of available-for-sale securities 25 294 Proceeds from sale of Lehi, Utah fab — 888 Other (93 ) (366 ) Net cash provided by (used for) investing activities (6,191 ) (11,585 ) Cash flows from financing activities Proceeds from issuance of debt 6,716 2,000 Repayments of debt (761 ) (2,032 ) Payments of dividends to shareholders (504 ) (461 ) Repurchases of common stock - repurchase program (425 ) (2,432 ) Payments on equipment purchase contracts (138 ) (141 ) Other 95 86 Net cash provided by (used for) financing activities 4,983 (2,980 ) Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash (34 ) (106 ) Net increase (decrease) in cash, cash equivalents, and restricted cash 317 510 Cash, cash equivalents, and restricted cash at beginning of period 8,339 7,829 Cash, cash equivalents, and restricted cash at end of period $ 8,656 $ 8,339 MICRON TECHNOLOGY, INC.
NOTES
(Unaudited)Inventories
In the third and second quarters of 2023, we recorded charges of $401 million and $1.43 billion, respectively, to cost of goods sold to write down the carrying value of work in process and finished goods inventories to their estimated net realizable values (“NRV”). The impact of inventory NRV write-downs for each period reflects (1) inventory write-downs in that period, offset by (2) lower costs in that period on the sale of inventory written down in prior periods. The impacts of inventory NRV write-downs are summarized below:
4th Qtr. 3rd Qtr. 4th Qtr. Year Ended August 31,
2023June 1,
2023September 1,
2022August 31,
2023September 1,
2022Provision to write down inventory to NRV $ — $ (401 ) $ — $ (1,831 ) $ — Lower costs from sale of inventory written down in prior periods 563 281 — 844 — $ 563 $ (120 ) $ — $ (987 ) $ — MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In millions, except per share amounts)4th Qtr. 3rd Qtr. 4th Qtr. Year Ended August 31,
2023June 1,
2023September 1,
2022August 31,
2023September 1,
2022GAAP gross margin $ (435 ) $ (668 ) $ 2,622 $ (1,416 ) $ 13,898 Stock-based compensation 64 60 49 201 193 Other 5 5 5 19 22 Non-GAAP gross margin $ (366 ) $ (603 ) $ 2,676 $ (1,196 ) $ 14,113 GAAP operating expenses $ 1,037 $ 1,093 $ 1,101 $ 4,329 $ 4,196 Stock-based compensation (87 ) (91 ) (82 ) (363 ) (308 ) Restructure and asset impairments (4 ) (68 ) (5 ) (171 ) (48 ) Goodwill impairment (101 ) — — (101 ) — Litigation settlement — (68 ) — (68 ) — Other (3 ) — — (3 ) (8 ) Non-GAAP operating expenses $ 842 $ 866 $ 1,014 $ 3,623 $ 3,832 GAAP operating income (loss) $ (1,472 ) $ (1,761 ) $ 1,521 $ (5,745 ) $ 9,702 Stock-based compensation 151 151 131 564 501 Restructure and asset impairments 4 68 5 171 48 Goodwill impairment 101 — — 101 — Litigation settlement — 68 — 68 — Other 8 5 5 22 30 Non-GAAP operating income (loss) $ (1,208 ) $ (1,469 ) $ 1,662 $ (4,819 ) $ 10,281 GAAP net income (loss) $ (1,430 ) $ (1,896 ) $ 1,492 $ (5,833 ) $ 8,687 Stock-based compensation 151 151 131 564 501 Restructure and asset impairments 4 68 5 171 48 Goodwill impairment 101 — — 101 — Litigation settlement — 68 — 68 — Loss on debt repurchases and conversions — — — — 83 Other 7 7 11 32 61 Impact of Idaho income tax reform — — — — 189 Estimated tax effects of above and other tax adjustments (10 ) 37 (18 ) 35 (94 ) Non-GAAP net income (loss) $ (1,177 ) $ (1,565 ) $ 1,621 $ (4,862 ) $ 9,475 GAAP weighted-average common shares outstanding - Diluted 1,095 1,094 1,106 1,093 1,122 Adjustment for stock-based compensation — — 15 — 13 Non-GAAP weighted-average common shares outstanding - Diluted 1,095 1,094 1,121 1,093 1,135 GAAP diluted earnings (loss) per share $ (1.31 ) $ (1.73 ) $ 1.35 $ (5.34 ) $ 7.75 Effects of the above adjustments 0.24 0.30 0.10 0.89 0.60 Non-GAAP diluted earnings (loss) per share $ (1.07 ) $ (1.43 ) $ 1.45 $ (4.45 ) $ 8.35 RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
4th Qtr. 3rd Qtr. 4th Qtr. Year Ended August 31,
2023June 1,
2023September 1,
2022August 31,
2023September 1,
2022GAAP net cash provided by operating activities $ 249 $ 24 $ 3,777 $ 1,559 $ 15,181 Expenditures for property, plant, and equipment (1,461 ) (1,561 ) (3,613 ) (7,676 ) (12,067 ) Proceeds from sales of property, plant, and equipment 18 34 30 92 117 Payments on equipment purchase contracts (26 ) (36 ) (9 ) (138 ) (141 ) Amounts funded by partners 462 184 11 710 115 Investments in capital expenditures, net (1,007 ) (1,379 ) (3,581 ) (7,012 ) (11,976 ) Adjusted free cash flow $ (758 ) $ (1,355 ) $ 196 $ (5,453 ) $ 3,205 The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income (loss), net income (loss), diluted shares, diluted earnings (loss) per share, and adjusted free cash flow. 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;
- Employee severance;
- Gains and losses from settlements;
- Restructure and asset impairments;
- Goodwill impairment;
- Gains and losses from debt repurchases and conversions; 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 (loss).
MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOKFQ1-24 GAAP Outlook Adjustments Non-GAAP Outlook Revenue $4.40 billion ± $200 million — $4.40 billion ± $200 million Gross margin (6.0%) ± 2.0% 2.0 % A (4.0%) ± 2.0% Operating expenses $1.01 billion ± $15 million $113 million B $900 million ± $15 million Diluted earnings (loss) per share(1) ($1.24) ± $0.07 $0.17 A, B, C ($1.07) ± $0.07 Non-GAAP Adjustments
(in millions)A Stock-based compensation – cost of goods sold $ 66 A Other – cost of goods sold 4 B Stock-based compensation – research and development 69 B Stock-based compensation – sales, general, and administrative 44 C Tax effects of the above items and other tax adjustments (1 ) $ 182 (1) GAAP and non-GAAP earnings (loss) per share based on approximately 1.10 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, additional 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: Samir Patodia Investor Relations spatodia@micron.com (408) 834-1947 Erica Rodriguez Pompen Media Relations epompen@micron.com (408) 834-1873
