Micron Technology, Inc. Reports Results for the Fourth

BOISE, Idaho, Sept. 29, 2022 (GLOBE NEWSWIRE) — Micron Technology, Inc. (Nasdaq: MU) as we speak introduced outcomes for its fourth quarter and full yr of fiscal 2022, which ended September 1, 2022.

Fiscal This fall 2022 highlights

• Revenue of $6.64 billion versus $8.64 billion for the prior quarter and $8.27 billion for the identical interval final yr
• GAAP web earnings of $1.49 billion, or $1.35 per diluted share
• Non-GAAP web earnings of $1.62 billion, or $1.45 per diluted share
• Operating money stream of $3.78 billion versus $3.84 billion for the prior quarter and $3.88 billion for the identical interval final yr

Fiscal 2022 highlights

• Revenue of $30.76 billion versus $27.71 billion for the prior yr
• GAAP web earnings of $8.69 billion, or $7.75 per diluted share
• Non-GAAP web earnings of $9.48 billion, or $8.35 per diluted share
• Operating money stream of $15.18 billion versus $12.47 billion for the prior yr

“In fiscal 2022, Micron generated record revenue of $30.8 billion and delivered our sixth consecutive year of positive free cash flow, allowing us to return a record $2.9 billion to our shareholders,” mentioned Micron Technology President and CEO Sanjay Mehrotra. “Our technology and manufacturing leadership in both DRAM and NAND, deep customer relationships, diverse product portfolio, and strong balance sheet put Micron on solid footing to navigate the weakened near-term supply-demand environment. We are taking decisive steps to reduce our supply growth including a nearly 50% wafer fab equipment capex cut versus last year, and we expect to emerge from this downcycle well positioned to capitalize on the long-term demand for memory and storage.”

Investments in capital expenditures, web⁽²⁾ had been $3.58 billion for the fourth quarter of 2022 and $11.98 billion for the full yr of 2022, which resulted in adjusted free money flows⁽²⁾ of $196 million for the fourth quarter of 2022 and $3.21 billion for the full yr of 2022. Micron repurchased roughly 13.2 million shares of its frequent inventory for $784 million throughout the fourth quarter of 2022 and 35.4 million shares of its frequent inventory for $2.43 billion throughout the full yr of 2022 and ended the yr with money, marketable investments, and restricted money of $11.06 billion, for a web money⁽²⁾ place of $4.15 billion. On September 29, 2022, Micron’s Board of Directors declared a quarterly dividend of $0.115 per share, payable in money on October 26, 2022, to shareholders of file as of the shut of business on October 11, 2022.

Business Outlook

The following desk presents Micron’s steering for the first quarter of 2023:

Further data concerning Micron’s business outlook is included in the ready remarks and slides, which have been posted at buyers.micron.com.

Investor Webcast

Micron will host a convention name on Thursday, September 29, 2022 at 2:30 p.m. Mountain Time to debate its fourth quarter monetary outcomes and supply forward-looking steering for its first quarter. A stay webcast of the name can be out there on-line at buyers.micron.com. A webcast replay can be out there for one yr after the name. For Investor Relations and different firm updates, observe @MicronTech on Twitter at twitter.com/MicronTech.

About Micron Technology, Inc.

We are an business chief in progressive reminiscence and storage options remodeling how the world makes use of data to complement life for all. With a relentless concentrate on our prospects, expertise management, and manufacturing and operational excellence, Micron delivers a wealthy portfolio of high-performance DRAM, NAND, and NOR reminiscence and storage merchandise by means of our Micron® and Crucial® manufacturers. Every day, the improvements that our folks create gas the information economy, enabling advances in synthetic intelligence and 5G functions that unleash alternatives — from the information heart to the clever edge and throughout the consumer and cell consumer expertise. To be taught extra about Micron Technology, Inc. (Nasdaq: MU), go to micron.com.

© 2022 Micron Technology, Inc. All rights reserved. Micron, the Micron emblem, and all different Micron logos are the property of Micron Technology, Inc. All different logos are the property of their respective house owners.

Forward-Looking Statements

This press launch accommodates forward-looking statements concerning our business, our strategic place, and our monetary and working outcomes. These forward-looking statements are topic to various dangers and uncertainties that might trigger precise outcomes to vary materially. Please discuss with the paperwork we file with the Securities and Exchange Commission, together with our most up-to-date Form 10-Okay and Form 10-Q. These paperwork comprise and determine necessary elements that might trigger our precise outcomes to vary materially from these contained in these forward-looking statements. These sure elements may be discovered at micron.com/certainfactors. Although we imagine that the expectations mirrored in the forward-looking statements are cheap, we can’t assure future outcomes, ranges of exercise, efficiency, or achievements. We are underneath no responsibility to replace any of the forward-looking statements to adapt these statements to precise outcomes.

⁽¹⁾ GAAP represents U.S. Generally Accepted Accounting Principles.
⁽²⁾ Non-GAAP represents GAAP excluding the affect of sure actions, which administration excludes in analyzing our working outcomes and understanding tendencies in our earnings, adjusted free money stream, web money, and business outlook. Further data concerning Micron’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included inside this press launch.

MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In hundreds of thousands, besides per share quantities)
(Unaudited)

MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(In hundreds of thousands)
(Unaudited)

MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In hundreds of thousands)
(Unaudited)

MICRON TECHNOLOGY, INC.
NOTES
(Unaudited)

Lehi, Utah, Fab and 3D XPoint

In the second quarter of 2021, we up to date our portfolio technique to additional strengthen our concentrate on reminiscence and storage improvements for the information heart market. In connection therewith, we decided that there was inadequate market validation to justify the ongoing investments required to commercialize 3D XPoint at scale. Accordingly, we ceased growth of 3D XPoint expertise and engaged in discussions with potential patrons for the sale of our facility situated in Lehi, Utah that was devoted to 3D XPoint manufacturing. As a end result, we labeled the property, plant, and tools as held for sale as of the second quarter of 2021 and ceased depreciating the belongings. On June 30, 2021, we introduced a definitive settlement to promote our Lehi facility to Texas Instruments Incorporated (“TI”) and closed the sale on October 22, 2021.

In the first quarter of 2022, we received $893 million from TI for the sale of the Lehi facility and disposed of $918 million of net assets, consisting primarily of property, plant, and equipment of $921 million; $55 million of other assets, consisting primarily of a receivable for reimbursement of property taxes, equipment spare parts, and raw materials; and $58 million of liabilities, consisting primarily of a finance lease obligation. As a result of the disposition of the Lehi facility and other related adjustments, we recognized a loss of $23 million included in restructure and asset impairments in the first quarter of 2022.

In 2021, we recognized a charge of $435 million included in restructure and asset impairments in connection with the definitive agreement with TI (and a tax benefit of $104 million included in income tax (provision) benefit) to write down the assets held for sale to the expected consideration, net of estimated selling costs. The impairment charge was based on Level 3 inputs including expected consideration and the composition of assets included in the sale, which were derived from the agreement with TI. We also recognized a charge of $49 million to cost of goods sold in 2021 to write down 3D XPoint inventory due to our decision to cease further development of this technology. Our 3D XPoint technology development and Lehi facility operations were primarily included in our CNBU segment results.

Debt Activity

On November 1, 2021, we issued in a public offering $1.00 billion in principal amount of 2.703% senior notes due 2032 (green bonds), $500 million in principal amount of 3.366% senior notes due 2041, and $500 million in principal amount of 3.477% senior notes due 2051, and received aggregate net proceeds of $1.99 billion.

On November 17, 2021, we redeemed $1.25 billion in principal amount of our 2.497% senior notes due 2023 and $600 million in principal amount of our 4.640% senior notes due 2024 for $1.93 billion in cash and recognized a non-operating loss of $83 million.

MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In millions, except per share amounts)

RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued

The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income, net income, diluted shares, diluted earnings per share, adjusted free cash flow, and net cash. The non-GAAP adjustments above may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. We believe this non-GAAP information is helpful in understanding trends and in analyzing our operating results and earnings. We are providing this information to investors to assist in performing analysis of our operating results. When evaluating performance and making decisions on how to allocate our resources, management uses this non-GAAP information and believes investors should have access to similar data when making their investment decisions. We believe these non-GAAP financial measures increase transparency by providing investors with useful supplemental information about the financial performance of our business, enabling enhanced comparison of our operating results between periods and with peer companies. The presentation of these adjusted amounts varies from amounts presented in accordance with U.S. GAAP and therefore may not be comparable to amounts reported by other companies. Our management excludes the following items in analyzing our operating results and understanding trends in our earnings:

• Stock-based compensation;
• Flow-through of business acquisition-related inventory adjustments;
• Acquisition-related costs;
• Employee severance;
• Gains and losses from settlements and patent license charges;
• Restructure and asset impairments;
• Amortization of debt discount;
• Gains and losses from debt repurchases and conversions;
• Gains and losses from business acquisition activities;
• Initial impact of inventory accounting policy change to FIFO and change in inventory cost absorption in the second quarter of 2021; and
• The estimated tax effects of above, non-cash changes in net deferred income taxes, assessments of tax exposures, certain tax matters related to prior fiscal periods, and significant changes in tax law.

Non-GAAP diluted shares are adjusted for the impact of additional shares resulting from the exclusion of stock-based compensation from non-GAAP income.

MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK

The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, restructuring activities, balance sheet valuation adjustments, strategic investments, financing transactions, and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.