Here it is:
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Boise, Idaho, September 19, 1996 -- Micron Technology, Inc., today reported net income of $593 million, or $2.76 per fully diluted share, on net
sales of $3,654 million for the fiscal year ended August 29, 1996. Fiscal 1995's net income was $844 million, or $3.90 per fully diluted share, on
net sales of $2,953 million. Net income for fiscal 1996 declined 30% from 1995 as the semiconductor memory business was impacted by sharp
declines in average selling prices.
Net sales for the fourth quarter of fiscal 1996 were $700 million and net income was $19 million, or $0.09 per fully diluted share, compared to net
sales of $771 million and net income of $58 million ($0.27 per fully diluted share) for the third fiscal quarter of 1996, and net sales of $1,028 million
and net income of $281 million ($1.29 per fully diluted share) for the fourth fiscal quarter of 1995. The Company incurred a $9 million pretax charge
in the fourth quarter for estimated selling costs on personal computer systems. Results for the fourth quarter of fiscal 1996 benefited from 1) a
decrease in the estimated effective income tax rate for fiscal 1996, resulting in a reduction of income tax expense of approximately $6 million and 2)
the release of previously established accruals upon resolution of product and process rights contingencies for both semiconductor and personal
computer operations in the aggregate amount of $34 million after tax. Fully diluted earnings per share for fiscal 1996 benefited by approximately
$0.16 from such fourth quarter adjustments. Resolution of product and process rights contingencies will have a modest ongoing benefit to cost of
goods sold of semiconductor products.
Fiscal 1996 results were adversely affected by a one-time $30 million pre-tax restructuring charge for discontinuing sales of ZEOS brand PC
systems and closing the related PC manufacturing operations in Minneapolis, Minnesota, in the second fiscal quarter. The restructuring charge
reduced 1996 fully diluted earnings per share by approximately $0.11.
The Company's net sales increased 24% in fiscal 1996 as compared to fiscal 1995 as a result of growth in personal computer sales and a significant
increase in megabits of semiconductor memory sold. PC system sales increased primarily due to greater market acceptance of Micron brand
desktop systems, a higher level of government sales, and an increase in sales of notebook systems. The effect on net sales of the increase in
megabits of semiconductor memory produced was offset by a severe decline (over 75%) in average selling prices for semiconductor memory.
Production of semiconductor memory was 95% higher in 1996 as compared to 1995, measured in megabits, primarily as a result of transitions to
shrink versions of 4 Meg and 16 Meg DRAMs and conversions of a substantial portion of the Company's fabrication capacity to 8-inch wafer
processing. Sales of semiconductor memory products in fiscal 1996 comprised approximately 60% of total net sales (40% in the fourth quarter).
Personal computer system sales, excluding the value of the Company's semiconductor memory included therein, represented approximately 31% of
total net sales in fiscal 1996 (50% in the fourth quarter).
Steve Appleton, Chairman, President, and CEO, commented on the fiscal 1996 results, saying, "We are extremely proud of our team's outstanding
efforts resulting in the second most profitable year in the Company's history. The execution of the conversion to 8-inch wafer processing and the
transition to the 16 Meg DRAM as our primary product has been phenomenal. The emergence of Micron Electronics as a major competitor in the
personal computer direct sales channel is additionally a significant accomplishment."
In recent years, the Company has been able to fund its capacity enhancement programs and working capital requirements from operations. Given
the uncertainity of the length of each downturn, management is evaluating multiple financing alternatives for potential future needs.
Micron Technology, Inc., and its subsidiaries manufacture and market DRAMs, very fast SRAMs, FLASH, other semiconductor memory
components, remote intelligent communications (RIC) products, complex printed circuit board assemblies, and personal computer systems.
Micron's common stock is traded on the New York Stock Exchange (NYSE) under the symbol MU.
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Regards...Craig |
