For those looking for the PR...
biz.yahoo.com
go some MUPG's, this POS will probably be up tommorrow. Got to get some upgrades issued to prop up the stock so the big institutions can unload their shares.
mbd
Micron Technology, Inc., Reports Results for the Second Quarter of Fiscal 1998
BOISE, Idaho--(BUSINESS WIRE)--March 16, 1998--Micron Technology, Inc., today reported a net loss for the second quarter of fiscal 1998, ended February 26, of $48
million, or $0.23 per share -- diluted, on net sales of $755 million. Operating losses incurred in the Company's semiconductor memory and PC systems operations were partially
offset in the second quarter of fiscal 1998, by an $0.18 per share -- diluted (after tax and minority interests) gain on the sale of 90% of the Company's contract manufacturing
subsidiary. For the first quarter of fiscal 1998, net sales were $955 million and net income was $10 million, or $0.04 per share -- diluted. As of February 26, 1998, the Company had
cash and liquid investments of $935 million.
In the second quarter of fiscal 1998, the Company's semiconductor memory operations lost $0.26 per share -- diluted, on net sales of $283 million. Semiconductor memory sales for
the second quarter declined from $440 million in the first quarter of fiscal 1998, primarily due to lower pricing for semiconductor memory products and fewer megabits sold. Test
capacity constraints, previously limiting overall productivity gains, were substantially resolved in the last few weeks of the second quarter, allowing megabits of production to
increase 10% as compared to the first quarter of fiscal 1998. Gross margins on semiconductor memory products averaged approximately 5% in the second quarter, as compared to
32% in the first quarter of 1998.
The Company's semiconductor memory operations have been severely impacted by pricing pressure from Asian competitors who were recently found by the U.S. Department of
Commerce to be dumping product below their cost of production. Steve Appleton, the Company's Chairman, CEO and President stated, ''We are hopeful that the U.S. Department
of Commerce will continue to monitor these ongoing trade violations and that Congress will view carefully the impact upon U.S. businesses of any further International Monetary
Fund support of these practices.''
In the second quarter of fiscal 1998, PC systems operations incurred a pre-tax operating loss in excess of $100 million principally as a result of write-downs of inventories and the
effect of significant price declines for notebook products, a 10% decline in unit sales from the prior quarter, and actions taken to reposition PC operations to more efficiently and
cost-effectively serve core markets. ''Other operating expenses'' in the second quarter include employee severance costs and costs to consolidate domestic and international PC
operations.
During recent months, the Company's approximate 64% owned subsidiary, Micron Electronics, successfully recruited five experienced executives from the PC industry including
new President and Chief Operating Officer Joel Kocher, a former top executive at Dell Computer. ''While Micron Electronics' products have long been recognized for their excellent
price/performance characteristics, we have taken decisive actions this quarter to competitively position our organization with an infrastructure that will allow us to serve our core
customers in a more efficient, cost-effective way,'' said Kocher.
The Company sold 90% of its contract manufacturing services subsidiary on February 26, 1998. Net sales for such operations, exclusive of the Company's memory content included
therein, were $63 million in the second quarter of fiscal 1998.
Micron Technology, Inc., and its subsidiaries manufacture and market DRAMs, very fast SRAMs, Flash, other semiconductor components, memory modules, personal computer
systems, and remote intelligent communications (RIC) products. Micron's common stock is traded on the New York Stock Exchange (NYSE) under the symbol MU.
MICRON TECHNOLOGY, INC., CONSOLIDATED FINANCIAL SUMMARY
(Amounts in millions except per share data)
SELECTED RESULTS OF OPERATIONS
QUARTER ENDED 6 MONTHS ENDED
Feb. 26, Feb. 27, Feb. 26, Feb. 27,
1998 1997 1998 1997
-------- -------- -------- --------
Net sales (1)
Semiconductor memory
products $283.4 $401.5 $723.5 $743.7
Personal computer
systems 396.5 395.4 841.6 729.2
Other 75.5 79.3 144.9 131.4
Total net sales 755.4 876.2 1,710.0 1,604.3
Costs and expenses:
Cost of goods sold 733.1 657.5 1,477.2 1,230.3
Selling, general and
administrative 135.7 97.4 260.2 173.9
Research and development 69.9 46.8 133.8 94.0
Other operating expense
(income), net (2) 24.2 (2.2) 28.8 (2.0)
Total costs and expenses 962.9 799.5 1,900.0 1,496.2
Operating income (loss) (207.5) 76.7 (190.0) 108.1
Gain on sale of
subsidiary stock
and investments, net (3) 157.1 176.8 157.1 187.7
Gain on issuance of
subsidiary stock, net 0.5 28.6 0.6 27.7
Interest income (expense), net 1.9 (1.8) 0.7 (3.9)
Income (loss) before
income taxes
and minority interests (48.0) 280.3 (31.6) 319.6
Income tax provision
(benefit) (8.9) 131.2 (2.3) 146.8
Minority interests in
net income (loss) 9.0 6.4 9.2 9.5
Net income (loss) ($48.1) $142.7 ($38.5) $163.3
Earnings (loss) per share
Basic ($0.23) $0.68 ($0.18) $0.78
Diluted ($0.23) $0.67 ($0.18) $0.77
Number of shares used in
per share calculations
Basic 211.8 209.7 211.6 209.4
Diluted 211.8 213.3 211.6 212.9
(1) The value of the Company's semiconductor memory products
included in PC systems and other products is included under
"Semiconductor memory products." "Other" includes revenue from
contract manufacturing and module assembly services, government
research and development contracts, and licensing fees.
(2) Other expense for the second quarter of 1998 includes charges of
$13 million associated with the Company's PC operations resulting from
a reduction in workforce and consolidation of domestic and
international operations. In addition, other expense includes $4
million related to the disposal and writedown of semiconductor memory
operations equipment.
(3) Net gains on sale of investments and subsidiary stock for the
second quarter of 1998 includes a pretax gain of $157 million on the
sale of 90% of the Company's contract manufacturing subsidiary. Net
gains on sale of investments and subsidiary stock for the second
quarter of 1997 includes a pretax gain of $190 million on the sale of
shares of Micron Electronics, Inc. common stock.
SELECTED CASH FLOW DATA
(For the six months ended)
Feb. 26, Feb. 27,
1998 1997
Depreciation and amortization 283.6 227.9
Net cash provided by operating
activities 125.9 348.2
Expenditures for property, plant
and equipment (381.3) (228.3)
Net cash provided by (used for)
investing activities (130.5) 3.2
Payments on equipment purchase
contracts (20.1) (32.3)
Net repayments on lines of credit -- (90.0)
Proceeds from issuance of debt 31.4 70.7
Repayments of debt (72.5) (53.1)
Net cash used for financing
activities (53.8) (44.6)
Net increase (decrease) in cash
and equivalents (58.4) 306.8
Proceeds from sale of subsidiary
stock 237.3 248.9
Equipment acquisitions on contracts
payable and capital leases 48.7 20.5
SELECTED FINANCIAL DATA
Feb. 26, Aug. 28,
1998 1997
Cash and liquid investments $934.9 $987.7
Receivables 353.6 458.9
Inventories 448.0 454.2
Total current assets 1,829.0 1,972.4
Property, plant and equipment, net 2,848.3 2,761.2
Total assets 4,839.1 4,851.3
Accounts payable and accrued
expenses 578.9 546.1
Short-term debt 10.6 10.6
Current portion of long-term debt 98.0 116.0
Total current liabilities 737.9 749.9
Long-term debt 740.7 762.3
Shareholders' equity 2,874.7 2,883.1 |
