Micron Technology, Inc., Reports Results for the Third Quarter of Fiscal 2016

BOISE, Idaho, June 30, 2016 (GLOBE NEWSWIRE) -- Micron Technology, Inc., (NASDAQ:MU) today announced results of operations for its third quarter of fiscal 2016, which ended June 2, 2016. Revenues for the third quarter of fiscal 2016 were $2.90 billion and were slightly lower compared to the second quarter of fiscal 2016 and 25 percent lower compared to the third quarter of fiscal 2015. Cash flows from operations were $389 million for the third quarter of fiscal 2016.

GAAP Income and Per Share Data – On a GAAP(1) basis, net loss attributable to Micron shareholders for the third quarter of fiscal 2016 was $215 million, or ($0.21) per diluted share, compared to net loss of $97 million, or ($0.09) per diluted share, for the second quarter of fiscal 2016.

Non-GAAP Income and Per Share Data – On a non-GAAP(2) basis, net loss attributable to Micron shareholders for the third quarter of fiscal 2016 was $79 million, or ($0.08) per diluted share, compared to net loss of $48 million, or ($0.05) per diluted share, for the second quarter of fiscal 2016. For a reconciliation of GAAP to non-GAAP results, see the accompanying financial tables and footnotes.

"Although we have made good progress in deploying our advanced DRAM and NAND technologies, we continue to face challenging market conditions," said Micron CEO Mark Durcan. "To address the current market environment and strengthen our competitive position, we are implementing a number of initiatives to reduce costs, drive greater efficiencies, and increase focus on our strategic priorities."

The initiatives, which include a global workforce reduction, are expected to save the company over $300 million in fiscal 2017.

Revenues for the third quarter of fiscal 2016 were slightly lower compared to the second quarter of fiscal 2016 as increases in sales of DRAM products were offset by decreases in sales of trade Non-Volatile products. DRAM revenues increased in the third quarter of fiscal 2016 as a result of a 22 percent increase in unit sales partially offset by an 11 percent decline in average selling prices. Sales of trade Non-Volatile products decreased due to a 10 percent decrease in units sales and a six percent decline in average selling prices. The company's overall consolidated gross margin of 17 percent for the third quarter of fiscal 2016 was three percent lower compared to the second quarter primarily due to lower average selling prices partially offset by manufacturing cost reductions.

Investments in capital expenditures for the third quarter of fiscal 2016 were $1.69 billion. The company ended the third quarter of fiscal 2016 with cash and marketable investments of $5.65 billion.

The company will host a conference call Thursday, June 30, 2016 at 2:30 p.m. MT to discuss its financial results. The call, audio, and slides will be available online at http://edge.media-server.com/m/p/4thwofg6. A webcast replay will be available on the company's website until June 30, 2017. A taped audio replay of the conference call will also be available at 1-404-537-3406 or 1-855-859-2056 (conference number: 29438318) beginning at 5:30 p.m. MT, Thursday, June 30, 2016 and continuing through Friday, July 8, 2016. For Investor Relations and other company updates, follow @MicronTech on Twitter at https://twitter.com/MicronTech.

Micron Technology, Inc., is a global leader in advanced semiconductor systems. Micron's broad portfolio of high-performance memory technologies—including DRAM, NAND, and NOR Flash—is the basis for solid state drives, modules, multichip packages, and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer, enterprise storage, networking, mobile, embedded, and automotive applications. Micron's common stock is traded on the NASDAQ under the MU symbol. To learn more about Micron Technology, Inc., visit www.micron.com.

(1) GAAP represents U.S. Generally Accepted Accounting Principles.
(2) Non-GAAP represents GAAP excluding the impact of certain activities which the company's management excludes in analyzing the company's operating results and understanding trends in the company's earnings. Non-GAAP also includes the impact on shares used in per share calculations of the company's outstanding capped call transactions. For a reconciliation of GAAP to non-GAAP results, see the accompanying financial tables and footnotes.

MICRON TECHNOLOGY, INC.
CONSOLIDATED FINANCIAL SUMMARY
(in millions except per share amounts)

   3rd Qtr.  2nd Qtr.  3rd Qtr.  Nine Months Ended
   June 2,
 2016
  March 3,
 2016
  June 4,
 2015
  June 2,
 2016
  June 4,
 2015
Net sales $2,898  $2,934  $3,853  $9,182  $12,592 
Cost of goods sold 2,400  2,355  2,651  7,256  8,347 
Gross margin 498  579  1,202  1,926  4,245 
Selling, general, and administrative 148  175  169  502  549 
Research and development 382  403  406  1,206   1,161  
Other operating (income) expense, net   (5 )   6     (4 )   18     (36 )
Operating income (loss)   (27 )   (5 )   631     200     2,571  
Interest income (expense), net   (99 )   (85 )   (88 )   (269 )   (246 )
Other non-operating income (expense), net (1)   (34 )   (6 )   (16 )   (44 )   (71 )
Income tax (provision) benefit (2)   (15 )   (5 )   (104 )   (16 )   (226 )
Equity in net income (loss) of equity method investees   (40 )   5     68     24     400  
Net (income) loss attributable to noncontrolling interests       (1 )       (1 )    
Net income (loss) attributable to Micron   $ (215 )   $ (97 )   $ 491     $ (106 )   $ 2,428  
                     
Earnings (loss) per share:                    
Basic   $ (0.21 )   $ (0.09 )   $ 0.46     $ (0.10 )   $ 2.26  
Diluted   (0.21 )   (0.09 )   0.42     (0.10 )   2.05  
                     
Number of shares used in per share calculations:                    
Basic   1,036     1,036     1,073     1,035     1,072  
Diluted   1,036     1,036     1,170     1,035     1,185  
                               

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