MICRON TECHNOLOGY, INC., REPORTS RECORD RESULTS FOR FOURTH FISCAL
QUARTER AND FISCAL YEAR 2000
(Consolidated Financial Summary)
Boise, Idaho, October 4, 2000 - Micron Technology, Inc., today reported net income of $727 million,
or $1.20 per share - diluted, on net sales of $2.6 billion for its fourth fiscal quarter ended August 31,
2000. For fiscal 2000 the Company had net income of $1.5 billion, or $2.56 per share - diluted, on net
sales of $7.3 billion. Net loss for fiscal 1999 was $69 million, or $0.13 per share - diluted, on net sales
of $3.8 billion. Net income for the third fiscal quarter of 2000 was $275 million, or $0.47 per share -
diluted on net sales of $1.8 billion.
Steve Appleton, Chairman, CEO and President, commented on the fourth fiscal quarter and year-end
results: "We are very proud of our execution and extremely pleased to announce these outstanding
results. This was a strong quarter and an exceptional year for Micron Technology."
Fiscal 2000 net income of $1.5 billion is primarily attributable to the Company's semiconductor
operations. For fiscal 2000, megabit sales of semiconductor memory were approximately 140% higher
than in 1999, principally as a result of the Company's efforts to enhance capacity utilization and
increase manufacturing efficiencies in its facilities including those acquired from Texas Instruments at
the beginning of fiscal 1999. The Company's semiconductor operations gross margin improved to 51%
for fiscal 2000 as compared to 25% for fiscal 1999, primarily as a result of reduced costs per megabit
for semiconductor memory products.
The increase in fourth fiscal quarter net income from third fiscal quarter resulted principally from an
increase in per megabit in average sales price and, to a lesser extent, an increase in megabits sold. The
gross margin for the Company's semiconductor operations was 58% in the fourth fiscal quarter as
compared to 43% for the third fiscal quarter.
On August 30, 2000, the Company completed the sale of its Richardson, Texas, facility to TriQuint
Semiconductor, Inc. for a pre-tax gain of $42 million (approximately $0.04 per diluted share for the
fourth fiscal quarter).
Net sales for the Company's PC operations decreased as a percentage of the Company's total net
sales to 15% in fiscal 2000 from 33% in fiscal 1999. Net sales for the Company's PC operations
increased 15% and unit sales of PC systems increased approximately 35% in the fourth fiscal quarter
as compared to the third fiscal quarter. Gross margin percent for PC operations declined to 12% in
the fourth fiscal quarter from 13% in the third fiscal quarter.
The Company has called for the redemption, effective October 11, 2000, of the Company's 6-1/2%
Convertible Subordinated Notes due October 1, 2005 (the "Notes"). The Notes are held by Texas
Instruments and the aggregate principal amount outstanding on the Notes is $740 million. The Notes
may be converted into approximately 24.7 million shares of the Company's common stock.
This press release is intended to provide a summary of results for the fourth quarter and fiscal year
2000. The Company's quarter and year end conference call will be available online at www.micron.com
beginning at 3:30 p.m. MDT today. (In order to access the webcast, you need Internet Explorer 4.0 or
higher, RealPlayer or Windows Media Player and speakers for the audio.) A webcast replay will be
available until October 16, 2000. A taped replay of the conference call will be available at
402/220-9161 beginning at 5 p.m. MDT today and continuing through October 5, 2000.
Micron Technology, Inc., and its subsidiaries manufacture and market DRAMs, very fast SRAMs, Flash,
other semiconductor components, memory modules, graphic accelerators, and personal computer
systems. 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.
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MICRON TECHNOLOGY, INC., CONSOLIDATED FINANCIAL SUMMARY
(Amounts in millions except per share data)
QUARTER ENDED
YEAR ENDED
Aug 31, 2000
Sep 2, 1999
Aug 31, 2000
Sep 2, 1999
Net sales
Semiconductor operations
$2,294.7
$820.9
$6,329.7
$2,569.7
PC operations
295.1
269.6
1,065.7
1,239.9
All other
0.1
0.4
0.4
5.2
Intersegment (1)
(19.7)
(10.1)
(59.5)
(50.8)
Total net sales
2,570.2
1,080.8
7,336.3
3,764.0
Costs and expenses:
Cost of goods sold
1,208.5
852.8
3,957.1
2,950.4
Selling, general and administrative
181.3
133.4
666.5
486.0
Research and development
131.7
87.3
427.5
322.1
Other operating expense (income),
net (2)
(49.1)
15.2
(8.1)
52.5
Total costs and expenses
1,472.4
1,088.7
5,043.0
3,811.0
Operating income (loss)
1,097.8
(7.9)
2,293.3
(47.0)
Gain (loss) on investments and subsidiary
stock transactions, net (3)
0.1
---
14.2
(0.1)
Gain on issuance of subsidiary stock, net
0.3
0.6
1.0
2.1
Interest income (expense), net
12.5
(12.5)
8.5
(46.5)
Income (loss) before income taxes
and minority interests
1,110.7
(19.8)
2,317.0
(91.5)
Income tax benefit (provision)
(375.0)
7.4
(796.7)
36.0
Minority interests in net income
(9.0)
(5.0)
(16.1)
(13.4)
Net income (loss)
$726.7
($17.4)
$1,504.2
($68.9)
Income (loss) per share (4)
Basic
$1.28
($0.03)
$2.73
($0.13)
Diluted
$1.20
($0.03)
$2.56
($0.13)
Number of shares used in per share calculations
Basic
566.0
533.9
550.9
521.5
Diluted
614.4
533.9
605.4
521.5
SELECTED CASH FLOW DATA
(For the twelve months ended)
Aug 31, 2000
Sep 2, 1999
Depreciation and amortization
$994.3
$843.3
Net cash provided by operating activities
2,068.3
847.9
Expenditures for property, plant and equipment
(1,188.2)
(803.9)
Net cash used for investing activities
(1,522.7)
(2,028.0)
Cash received in conjunction with acquisition
---
681.1
Proceeds from issuance of common stock
244.0
617.2
Payments on equipment purchase contracts
(210.7)
(302.9)
Net cash provided by (used for) financing activities
(138.5)
915.9
Net increase (decrease) in cash and equivalents
407.1
(264.2)
SUPPLEMENTAL DISCLOSURES
Aug 31, 2000
Sep 2, 1999
Equipment acquisitions on contracts payable
and capital leases
177.0
219.3
Conversion of notes to equity
498.6
---
SELECTED FINANCIAL DATA
Aug 31, 2000
Sep 2, 1999
Cash and liquid investments
$2,466.4
$1,613.5
Receivables
1,573.7
692.6
Inventories
704.8
365.7
Total current assets
4,904.4
2,830.0
Property, plant and equipment, net
4,257.6
3,799.6
Total assets
9,631.5
6,965.2
Accounts payable and accrued expenses
1,456.8
705.4
Current portion of long-term debt
47.9
111.7
Total current liabilities
1,647.5
922.0
Long-term debt (5)
933.7
1,527.5
Shareholders' equity
6,432.0
3,964.1
The Company has two segments, "Semiconductor operations" and "PC operations." The Semiconductor operations segment's
primary product is semiconductor memory. The PC operations segment's primary products include desktop and notebook PC
systems, multiprocessor network servers, hardware services and e-services.
(1)
Intersegment sales are primarily comprised of sales of semiconductor memory from Semiconductor operations to PC
operations.
(2)
Other operating income for fiscal 2000 includes a pre-tax gain of $42 million (approximately $0.05 per diluted share) on the
sale of the Company's Richardson, Texas, facility and net pre-tax losses of $23 million from the write down and disposal of
semiconductor operations equipment. Other operating expense for fiscal 1999 includes a $15 million charge to write down
certain flat panel display assets sold and net pre-tax losses of $12 million from the write down and disposal of
semiconductor memory operations equipment.
(3)
Subsidiary stock transactions for fiscal 2000 includes pre-tax gains of $14 million on the reduction of the Company's
ownership interest in Micron Electronics, Inc., to approximately 61%.
(4)
All share and per share data have been restated to reflect retroactively the 2-for-1 stock split, effected in the form of a
stock dividend on May 1, 2000.
(5)
In the third fiscal quarter of 2000, the Company redeemed its 7.0% convertible subordinated notes due July 2004, reducing
long-term debt by $500 million. The notes were converted into 14.8 million shares of the Company's common stock. The
Company has called for the redemption, effective October 11, 2000, of the Company's 6-1/2% Convertible Subordinated
Notes due October 1, 2005. The notes are held by Texas Instruments, Incorporated, and the aggregate principal amount
outstanding on the notes is $740 million. The notes may be converted into approximately 24.7 million shares of the
Company's common stock. |
