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17:01 ET BOISE, Idaho--(BUSINESS WIRE)--Sept. 24, 2002--Micron Technology,
Inc. (NYSE:MU.N), today announced results of operations for its fourth
quarter and fiscal year ended August 29, 2002, with operating losses
of $468 million and $1,025 million, respectively, on net sales of $748
million and $2,589 million, respectively. Operating results for the
fourth quarter of fiscal 2002 include a write-down of $174 million to
record inventories of semiconductor products at their estimated market
values.
Average selling prices for the Company's semiconductor products
decreased approximately 30% in the fourth quarter compared to the
immediately preceding quarter ended May 30, 2002. The decrease in
average selling prices was substantially offset by an approximate 40%
increase in the Company's megabit shipments during the fourth quarter
resulting in only slightly lower net sales for the fourth quarter
compared to the third quarter.
Despite adverse market conditions, the Company is executing
successfully with respect to its products and technology. In the
fourth quarter the Company completed its transition from the 256 Meg
Sync DRAM to the 256 Meg DDR DRAM as its primary product. Finished
goods inventory levels of DDR products are minimal as demand for DDR
memory remains strong. The Company spent approximately $2.6 billion
over the past two fiscal years on capital expenditures for leading
edge R&D and manufacturing capability. The Company's recent efficiency
measures reduced fourth quarter per megabit manufacturing costs by
approximately 10% as compared to the immediately preceding quarter.
Near term cost reductions are expected to result from utilization of
.13 and .11 micron manufacturing capacity. Megabit production in the
fourth quarter was approximately 20% higher than the immediately
preceding quarter. In addition to next generation memory development
efforts, research and development expense includes costs incurred in
design and development of devices for data networking applications and
CMOS imagers.
Due to historically low average selling prices, estimated market
values of certain of the Company's products, in particular synchronous
DRAM products, held in finished goods and work in process inventories
are currently below their costs, requiring an inventory write-down to
estimated market values. Excluding the effects on gross margin of the
fourth quarter write-down and of previous write-downs on products sold
in the fourth quarter, gross margin for the fourth quarter of fiscal
2002 would have been higher by approximately $130 million.
In the fourth quarter of fiscal 2002, as part of the income tax
provision for the period, the Company recorded a non-cash charge of
$348 million, or $0.58 per diluted share, through the establishment of
a valuation allowance against its deferred tax asset consisting
primarily of U.S. net operating loss carryforwards ($1.3 billion as of
August 29, 2002). The valuation allowance is in accordance with
generally accepted accounting principles, which require the assessment
of the Company's performance and other relevant factors when
determining the need for a valuation allowance. Factors such as recent
losses are given substantially more weight than forecast future
profitability. Until the Company utilizes these U.S. operating loss
carryforwards, the income tax provision will reflect modest levels of
foreign taxation.
Including the aforementioned effects of the lower of cost or
market write-downs and the deferred tax asset valuation allowance, the
Company's after-tax net loss for the fourth quarter was $587 million,
or $0.97 per diluted share, and for fiscal year 2002 was $907 million,
or $1.51 per diluted share. For fiscal year 2001, the Company had a
net loss from continuing operations of $521 million, or $0.88 per
diluted share, on net sales of $3,936 million.
The Company finished its 2002 fiscal year with approximately $1.1
billion in cash and investments (including $160 million ofmarketable
investments, classified as other long-term assets, with average
duration of less than one year).
The Company will host a conference call today at 3:30 p.m. MDT to
discuss its financial results. The conference call, along with audio
and slides will be available online at www.micron.com. (In order to
access the webcast, you will need current versions of RealPlayer or
Windows Media Player and speakers for the audio.) A webcast replay
will be available until October 1, 2002. A taped replay of the audio
portion of the call will be available at 973/341-3080 (confirmation
code: 3497940) beginning at 5:30 p.m. MDT today and continuing until
5:30 p.m. MDT on September 26, 2002.
Micron Technology, Inc., and its subsidiaries manufacture and
market DRAMs, very fast SRAMs, Flash memory, CMOS imagers, other
semiconductor components and memory modules. 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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*T
MICRON TECHNOLOGY, INC.
CONSOLIDATED FINANCIAL SUMMARY
(Amounts in millions except per share data)
QUARTER ENDED YEAR ENDED
Aug. 29, May 30, Aug. 30, Aug. 29, Aug. 30,
2002 2002 2001 2002 2001
-------- -------- -------- -------- --------
Net sales:
Semiconductor
Operations $ 748.0 $ 771.2 $ 470.5 $ 2,589.0 $ 3,882.6
Web-hosting
Operations -- -- 9.6 -- 53.0
Other -- -- 0.2 -- 0.3
-------- -------- -------- -------- --------
Total net
sales 748.0 771.2 480.3 2,589.0 3,935.9
Cost of goods
sold(1) 957.2 603.0 1,056.6 2,699.6 3,825.2
-------- -------- -------- -------- --------
Gross margin (209.2) 168.2 (576.3) (110.6) 110.7
Selling, general
and
administrative(2) 95.9 77.2 204.4 332.3 524.1
Research and
development 136.5 134.4 105.1 561.3 489.5
Other operating
expense(3) 26.0 3.3 42.8 21.1 73.6
-------- -------- -------- -------- --------
Operating loss (467.6) (46.7) (928.6) (1,025.3) (976.5)
Interest income,
net 4.1 5.0 16.4 34.5 119.1
Other non-operating
income
(expense)(4) (0.9) 1.4 (107.9) (7.7) (102.1)
Income tax
(provision)
benefit(5) (122.1) 16.1 445.2 91.5 446.0
Minority interest
in net income -- -- (0.6) -- (7.7)
-------- -------- -------- -------- --------
Loss from
continuing
operations (586.5) (24.2) (575.5) (907.0) (521.2)
Loss from
discontinued
PC Operations -- -- -- -- (103.8)
-------- -------- -------- -------- --------
Net loss $ (586.5) $ (24.2) $ (575.5) $ (907.0) $ (625.0)
======== ======== ======== ======== ========
Basic loss per
share:(6)
Continuing
operations $ (0.97) $ (0.04) $ (0.96) $ (1.51) $ (0.88)
Net loss (0.97) (0.04) (0.96) (1.51) (1.05)
Diluted loss
per share:(6)
Continuing
operations $ (0.97) $ (0.04) $ (0.96) $ (1.51) $ (0.88)
Net loss (0.97) (0.04) (0.96) (1.51) (1.05)
Number of shares
used in per share
calculations:
Basic 604.0 602.3 597.7 601.5 592.4
Diluted 604.0 602.3 597.7 601.5 592.4
SELECTED FINANCIAL DATA
AS OF
Aug. 29, May 30, Aug. 30,
2002 2002 2001
---------- ---------- ---------
Cash and liquid investments $ 985.7 $ 1,251.8 $ 1,678.3
Receivables 537.9 585.0 791.6
Inventories(1) 545.4 686.5 491.1
Total current assets 2,118.8 2,563.3 3,137.7
Property, plant and equipment, net 4,699.5 4,706.2 4,704.1
Total assets 7,555.4 8,120.4 8,363.2
Accounts payable and accrued expenses 554.1 528.3 512.9
Current portion of long-term debt 93.1 91.5 86.2
Total current liabilities 752.7 731.3 687.0
Long-term debt 360.8 360.3 445.0
Commitments and contingencies(7)
Redeemable common stock(6) 60.2 58.7 --
Shareholders' equity 6,306.4 6,893.8 7,134.8 |
