Micron Technology, Inc. Reports Results for the Second Quarter of Fiscal 2023
4:09 PM ET 3/28/23 | GlobeNewswire
Micron Technology, Inc. Reports Results for the Second Quarter of Fiscal 2023
Achieving technology milestones while cutting expenses and reducing supply
BOISE, Idaho, March 28, 2023 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its second quarter of fiscal 2023, which ended March 2, 2023.
Fiscal Q2 2023 highlights
-- Revenue of $3.69 billion versus $4.09 billion for the prior quarter and $7.79 billion for the same period last year -- GAAP net loss of $2.31 billion, or $2.12 per diluted share -- Non-GAAP net loss of $2.08 billion, or $1.91 per diluted share -- Inventory write-downs of $1.43 billion, impact of $1.34 per diluted share -- Operating cash flow of $343 million versus $943 million for the prior quarter and $3.63 billion for the same period last year
"Micron delivered fiscal second quarter revenue within our guidance range in a challenging market environment," said Micron Technology President and CEO Sanjay Mehrotra. "Customer inventories are getting better, and we expect gradual improvements to the industry's supply-demand balance. We remain confident in long-term demand and are investing prudently to preserve our technology and product portfolio competitiveness."
Quarterly Financial Results GAAP((1) Non-GAAP((2) -------------- ----------------------------------- ----------------------------------- (in millions, except per share amounts) FQ2-23 FQ1-23 FQ2-22 FQ2-23 FQ1-23 FQ2-22 -------------- ----------- ---------- ---------- ----------- ---------- ---------- Revenue $ 3,693 $4,085 $7,786 $ 3,693 $4,085 $7,786 Gross margin (1,206) 893 3,676 (1,161) 934 3,724 percent of revenue (32.7%) 21.9% 47.2% (31.4%) 22.9% 47.8% Operating expenses 1,097 1,102 1,130 916 999 974 Operating income (loss) (2,303) (209) 2,546 (2,077) (65) 2,750 percent of revenue (62.4%) (5.1%) 32.7% (56.2%) (1.6%) 35.3% Net income (loss) (2,312) (195) 2,263 (2,081) (39) 2,444 Diluted earnings (loss) per share (2.12) (0.18) 2.00 (1.91) (0.04) 2.14
Investments in capital expenditures, net((2) were $2.16 billion for the second quarter of 2023, which resulted in adjusted free cash flows(2) of negative $1.81 billion. Micron ended the second quarter of 2023 with cash, marketable investments, and restricted cash of $12.12 billion. Micron's Board of Directors has declared a quarterly dividend of $0.115 per share, payable in cash on April 25, 2023, to shareholders of record as of the close of business on April 10, 2023.
Business Outlook
The table below presents Micron's guidance for the third quarter of 2023. This guidance assumes a write down of approximately $500 million associated with inventory produced during the third quarter, impacting both GAAP and non-GAAP diluted earnings (loss) per share by approximately $0.45.
FQ3-23 GAAP((1) Outlook Non-GAAP((2) Outlook Revenue $3.70 billion +/- $200 $3.70 billion +/- $200 million million Gross margin (23.0%) +/- 2.5% (21.0%) +/- 2.5% Operating expenses $1.07 billion +/- $15 $900 million +/- $15 million million Diluted earnings (loss) ($1.79) +/- $0.07 ($1.58) +/- $0.07 per share
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 Tuesday, March 28, 2023 at 2:30 p.m. Mountain Time to discuss its second quarter financial results and provide forward-looking guidance for its third 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(R) and Crucial(R) 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.
(c) 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)
2nd 2nd Qtr. 1st Qtr. Qtr. Six months ended March March 2, December 3, March 2, March 3, 2023 1, 2022 2022 2023 2022 --------------- -------- ---------- ------- -------- ---------- Revenue $ 3,693 $ 4,085 $7,786 $ 7,778 $15,473 Cost of goods sold 4,899 3,192 4,110 8,091 8,232 ------ ----- ----- ------ ------ Gross margin (1,206) 893 3,676 (313) 7,241 Research and development 788 849 792 1,637 1,504 Selling, general, and administrative 231 251 263 482 522 Restructure and asset impairments 86 13 5 99 43 Other operating (income) expense, net (8) (11) 70 (19) (5) ------ ----- ----- ------ ------ Operating income (loss) (2,303) (209) 2,546 (2,512) 5,177 Interest income 119 88 12 207 22 Interest expense (89) (51) (55) (140) (100) Other non-operating income (expense), net 2 (4) 6 (2) (69) ------ ----- ----- ------ ------ (2,271) (176) 2,509 (2,447) 5,030 Income tax (provision) benefit (54) (8) (255) (62) (474) Equity in net income (loss) of equity method investees 13 (11) 9 2 13 ------ ----- ----- ------ ------ Net income (loss) $(2,312) $ (195) $2,263 $(2,507) $ 4,569 ====== ===== ===== ====== ====== Earnings (loss) per share Basic $ (2.12) $ (0.18) $ 2.02 $ (2.30) $ 4.08 Diluted (2.12) (0.18) 2.00 (2.30) 4.04 Number of shares used in per share calculations Basic 1,091 1,090 1,119 1,091 1,119 Diluted 1,091 1,090 1,130 1,091 1,130
MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(In millions)
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