Micron Technology, Inc., Reports Results for the 2005 Fiscal Year and Fourth Quarter

BOISE, Idaho—(BUSINESS WIRE)—Sept. 29, 2005— Micron Technology, Inc., (NYSE: MU) today announced results of operations for its 2005 fiscal year and fourth quarter, which ended September 1. For the 2005 fiscal year, the Company earned net income of $188 million, or $0.29 per diluted share, on net sales of $4.88 billion. For the fourth quarter, the Company earned net income of $43 million, or $0.07 per diluted share, on net sales of $1.26 billion. These quarterly results compare to a net loss of $128 million, or $0.20 per diluted share, on net sales of $1.05 billion for the third quarter of fiscal 2005.

The growth in net sales in the fourth quarter compared to the third quarter of fiscal 2005 primarily resulted from an approximate 15% increase in DRAM sales, a 40% increase in sales of CMOS image sensors and NAND Flash memory sales that were five times higher compared to the prior quarter. In the fourth quarter, sales of specialty DRAM products (including synchronous and pseudo-static) represented approximately 30% of net sales and sales of CMOS image sensors and NAND Flash memory products combined to represent approximately 15% of net sales. Sales of DDR and DDR2 DRAM products represented slightly more than one half of the Company's net sales for the fourth quarter. The higher level of DRAM sales reflects the combination of a 10% increase in megabit sales and a 3% increase in average selling prices.

"Micron's efforts to strengthen our product lines through expansion of our specialty DRAM products, CMOS image sensors and NAND Flash memory products continue to have a positive impact on our gross margin," said Steve Appleton, Micron Chairman, President, and CEO. "We continue to dedicate additional resources to expanding our presence in the mobile, consumer and server markets while remaining a leading DRAM supplier for computing applications."

Megabit production in the fourth quarter increased approximately 15% compared to the third quarter of fiscal 2005. During the fourth quarter, the Company continued its ramp of 300mm wafer production, reaching its initial target of 5,000 wafer outs per week. The level of megabits in finished goods inventories remained flat compared to the third quarter, but decreased in terms of days sales in inventory due to the higher level of sales in the fourth quarter of fiscal 2005.

For the 2005 fiscal year, the Company's megabit sales increased approximately 40% compared to the previous fiscal year. The Company's overall average selling price in fiscal 2005 decreased approximately 25% compared to fiscal 2004, while the average selling price for DDR2 DRAM products decreased approximately 40%. Megabit production in fiscal 2005 was approximately 50% higher than the previous fiscal year, reflecting significant improvements in manufacturing efficiencies across the Company's diversified product portfolio and the ramp of the Company's 300mm wafer production.

At the end of fiscal 2005, the Company had $1.3 billion in cash and short-term investments. During the fourth quarter of fiscal 2005, the Company generated $304 million in cash from operations and invested $169 million in capital expenditures. In the fourth quarter of fiscal 2005, the Company prepaid the $100 million remaining amount outstanding on its subordinated notes that were due in September 2005.

The Company will host a conference call today at 3:30 p.m. MDT to discuss its financial results. The conference call, audio and slides, will be available online at www.micron.com. A Webcast replay will be available on the Company's Web site until September 29, 2006. A taped audio replay of the conference call will also be available at 973-341-3080 (confirmation code: 6496152) beginning at 5:30 p.m. MDT today and continuing until 5:30 p.m. MDT on October 6, 2005.

Micron Technology, Inc., is one of the world's leading providers of advanced semiconductor solutions. Through its worldwide operations, Micron manufactures and markets DRAMs, NAND Flash memory, CMOS image sensors, other semiconductor components, and memory modules for use in leading-edge computing, consumer, networking and mobile products. Micron's common stock is traded on the New York Stock Exchange (NYSE) under the MU symbol. To learn more about Micron Technology, Inc., visit its Web site at www.micron.com.

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

                   4th Qtr.    3rd Qtr.  4th Qtr.      Year Ended
                    Sep. 1,     Jun. 2,   Sep. 2,   Sep. 1,   Sep. 2,
                     2005        2005      2004      2005      2004
                   ---------   --------- --------- --------- ---------
Net sales          $1,257.8    $1,054.2  $1,189.2  $4,880.2  $4,404.2
Cost of goods sold    975.6       967.6     796.6   3,734.4   3,089.5
                   ---------   --------- --------- --------- ---------
  Gross margin        282.2        86.6     392.6   1,145.8   1,314.7

Selling, general
 and
 administrative        88.0        88.6      74.7     348.3     332.0
Research and
 development          150.5       153.4     199.2     603.7     754.9
Restructure (1)          --          --      (0.6)     (1.4)    (22.5)
Other operating
 (income) expense
 (2)                   (2.6)      (25.3)     (6.1)    (22.3)      0.6
                   ---------   --------- --------- --------- ---------
Operating income
 (loss)                46.3      (130.1)    125.4     217.5     249.7

Interest expense,
 net                   (2.1)       (3.8)     (5.0)    (15.4)    (20.8)
Other non-
 operating income
 (expense)             (1.0)       (1.3)      0.9      (3.5)      3.1
Income tax
 (provision)
 benefit  (3)          (0.1)        7.3     (27.8)    (10.6)    (74.8)
                   ---------   --------- --------- --------- ---------
Net income (loss)  $   43.1    $ (127.9) $   93.5  $  188.0  $  157.2
                   =========   ========= ========= ========= =========
Earnings (loss)
 per share:
     Basic         $   0.07  $    (0.20) $   0.14  $   0.29  $   0.24
     Diluted           0.07       (0.20)     0.14      0.29      0.24

Number of shares
 used in per share
 calculations:
     Basic                   649.4              648.2          645.1          647.7          641.5
          Diluted                    650.0              648.2          701.4          702.0          645.7


CONSOLIDATED  FINANCIAL  SUMMARY,  Continued

                                                                                                        As  of
                                                                                  Sep.  1,      Jun.  2,      Sep.  2,
                                                                                    2005              2005            2004
                                                                                --------  ----------  ---------
Cash  and  short-term  investments                  $1,290.4  $    1,295.6  $  1,231.0
Receivables                                                                794.4            735.4          773.7
Inventories                                                                771.5            826.7          578.1
Total  current  assets                                          2,925.6        2,920.4      2,638.7
Property,  plant  and  equipment,  net              4,683.8        4,770.9      4,712.7
Restricted  cash                                                          50.2              50.4            27.6
Total  assets                                                          8,006.4        8,086.2      7,760.0

Accounts  payable  and  accrued  expenses            752.5            733.5          796.2
Current  portion  of  long-term  debt  (4)            147.0            248.8            70.6
Total  current  liabilities                                    978.6        1,093.3          972.1
Long-term  debt  (4)                                              1,020.2        1,045.6      1,027.9
Shareholders'  equity                                          5,846.8        5,791.6      5,614.8

                                                                                                            Year  Ended
                                                                                                      Sep.  1,        Sep.  2,
                                                                                                          2005            2004
                                                                                                  ----------  ---------
Net  cash  provided  by  operating
  activities                                                                            $    1,237.8  $  1,158.8
Net  cash  used  for  investing  activities
  (4)                                                                                            (1,083.9  )  (1,312.7)
Net  cash  (used  for)  provided  by
  financing  activities                                                              (115.5  )          69.7

Depreciation  and  amortization                                              1,264.5      1,217.5
Expenditures  for  property,  plant  and
  equipment                                                                                (1,064.8  )  (1,080.7)
Payments  on  equipment  purchase  contracts                        (236.0  )      (343.7)

Noncash  equipment  acquisitions  on
  contracts  payable  and  capital  leases                                  372.3          280.0

The  Company's  fiscal  year  is  the  52  or  53-week  period  ending  on  the
Thursday  closest  to  August  31.  The  Company's  fiscal  2004  contained  53
weeks  and  its  first  quarter  of  fiscal  2004  contained  14  weeks.

(1)  In  the  second  quarter  of  fiscal  2003,  the  Company  initiated  a
        series  of  cost-reduction  initiatives.  In  connection  therewith,  the
        Company  recorded  a  restructure  charge  in  fiscal  2003  that  included
        the  shutdown  of  the  Company's  200mm  production  line  in  Virginia,
        the  discontinuance  of  certain  memory  products,  including  SRAM  and
        TCAM  products,  and  a  10%  reduction  of  the  Company's  worldwide
        workforce.  The  credit  to  restructure  in  fiscal  2004  primarily
        reflects  sales  of  equipment  associated  with  the  Company's  200mm
        production  line  in  Virginia.

(2)  Other  operating  (income)  expense  for  fiscal  2005  includes  gains
        net  of  losses  on  write-downs  and  disposals  of  semiconductor
        equipment  of  $13  million  and  $12  million  in  receipts  from  the  U.S.
        Government  in  connection  with  anti-dumping  tariffs.  Other
        operating  (income)  expense  for  the  third  quarter  of  fiscal  2005
        includes  gains  net  of  losses  on  write-downs  and  disposals  of
        semiconductor  equipment  of  $15  million  and  net  gains  of  $12
        million  from  changes  in  currency  exchange  rates.  Other  operating
        (income)  expense  for  fiscal  2004  includes  losses  of  $17  million
        from  changes  in  currency  exchange  rates  and  $7  million  from  the
        Commonwealth  of  Virginia  for  meeting  investment  commitments  at  the
        Virginia  wafer  fab.

(3)  Income  taxes  for  fiscal  2005  and  2004  primarily  reflect  taxes  on
        the  Company's  non-U.S.  operations.  U.S.  operating  results  are  not
        expected  to  reflect  an  income  tax  provision,  until  such  time  as
        the  Company  utilizes  a  substantial  portion  of  its  U.S.  net
        operating  loss  carryforwards  and  unused  tax  credits,  as  any  such
        provision  is  substantially  offset  by  a  corresponding  reduction  in
        the  deferred  tax  valuation  allowance.

(4)  In  the  fourth  quarter  of  fiscal  2005,  the  Company  prepaid  the  $100
        million  remaining  amount  outstanding  on  its  subordinated  notes
        that  were  due  in  September  2005.  In  the  third  quarter  of  fiscal
        2005,  the  Company  entered  into  two  financing  arrangements  with
        banks  aggregating  23.5  billion  yen  ($221  million).  The
        yen-denominated  notes  are  payable  in  semi-annual  installments
        through  2010  and  bear  interest  at  a  weighted  average  rate  of  1.2%.
        During  fiscal  2005,  the  Company  received  $161  million  in  proceeds
        from  sales-leaseback  transactions  which  are  payable  in  periodic
        installments  through  January  2009.

 


1 | 2  Next Page »



Review Article Be the first to review this article
CST Webinar Series

EMA:

Featured Video
Editorial
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
Retail Therapy: Jump starting Black Friday
Peggy AycinenaIP Showcase
by Peggy Aycinena
REUSE 2016: Addressing the Four Freedoms
More Editorial  
Jobs
FAE FIELD APPLICATIONS SAN DIEGO for EDA Careers at San Diego, CA
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, CA
ACCOUNT MANAGER MUNICH GERMANY EU for EDA Careers at MUNICH, Germany
AE-APPS SUPPORT/TMM for EDA Careers at San Jose-SOCAL-AZ, CA
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
Upcoming Events
Zuken Innovation World 2017, April 24 - 26, 2017, Hilton Head Marriott Resort & Spa in Hilton Head Island, SC at Hilton Head Marriott Resort & Spa Hilton Head Island NC - Apr 24 - 26, 2017
CST Webinar Series



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy