Micron Technology, Inc., Reports Results for the Second Quarter of Fiscal 2013

Micron Technology, Inc., Reports Results for the Second Quarter of Fiscal 2013

BOISE, Idaho, March 21, 2013 (GLOBE NEWSWIRE) -- Micron Technology, Inc.,
(Nasdaq:MU) today announced results of operations for its second quarter of
fiscal 2013, which ended February 28, 2013. For the second quarter, the
company had a net loss attributable to Micron shareholders of $286 million, or
$0.28 per diluted share, on net sales of $2.1 billion. The results for the
second quarter of fiscal 2013 compare to a net loss of $275 million, or $0.27
per diluted share, on net sales of $1.8 billion for the first quarter of
fiscal 2013, and a net loss of $282 million, or $0.29 per diluted share, on
net sales of $2.0 billion for the second quarter of fiscal 2012.

Results of operations for the second quarter of fiscal 2013 include losses of
$120 million from changes in the market value of the company's currency hedges
entered into in connection with its planned acquisition of Elpida Memory, Inc.
and Rexchip Electronics Corporation. The results also include a loss of $62
million associated with the expected sale of the company's 200 millimeter
wafer fabrication facility in Avezzano, Italy, in the first half of calendar
2013.

The company's consolidated gross margin improved to 18 percent in the second
quarter of fiscal 2013 compared to 12 percent in the first quarter of fiscal
2013. Gross margin improvements were realized from sales of NAND Flash
products and from sales of DRAM products due to decreases in manufacturing
costs.

"We were pleased with the overall improvement in our operational performance
and excited to see the effects of our restructured partnership with Inotera
drive bit shipment growth during the quarter. We believe the resultant
increase in capacity from existing industry production will provide us the
scale we need to reinforce our leadership position," said Micron CEO Mark
Durcan.

Revenues from sales of DRAM products in the second quarter of fiscal 2013 were
24 percent higher compared to the first quarter of fiscal 2013, due to a 38
percent increase in sales volume partially offset by a 10 percent decrease in
average selling prices. Revenues from sales of NAND Flash products were 8
percent higher in the second quarter of fiscal 2013 compared to the first
quarter of fiscal 2013, primarily due to a 13 percent increase in Trade NAND
Flash sales volume. Sales of NOR Flash products were 14 percent lower in the
second quarter of fiscal 2013, compared to the first quarter of fiscal 2013,
due to decreases in sales volumes and average selling prices.

Cash flows from operations for the first six months of fiscal 2013 were $470
million, while investments in capital expenditures were $891 million. In the
second quarter of fiscal 2013, the company issued $600 million of convertible
senior notes. In connection therewith, the company used $477 million to
repurchase a portion of its 2014 notes. The company ended the quarter with
cash and investments of $2.8 billion.

The company will host a conference call Thursday, March 21 at 2:30 p.m. MDT to
discuss its financial results. The call, audio and slides will be available
online at http://investors.micron.com/events.cfm. A webcast replay will be
available on the company's website until March 28, 2014. A taped audio replay
of the conference call will also be available at 1-404-537-3406 or
1-855-859-2056 (conference number: 21046896) beginning at 5:30 p.m. MDT,
Thursday, March 21, 2013 and continuing until 5:30 p.m. MDT, Thursday, March
28, 2013.

Micron Technology, Inc., is one of the world's leading providers of advanced
semiconductor solutions. Through its worldwide operations, Micron manufactures
and markets a full range of DRAM, NAND Flash and NOR Flash memory, as well as
other innovative memory technologies, packaging solutions and semiconductor
systems for use in leading-edge computing, consumer, networking, embedded and
mobile products. Micron's common stock is traded on the NASDAQ under the MU
symbol. To learn more about Micron Technology, Inc., visit www.micron.com.

MICRON TECHNOLOGY, INC.
CONSOLIDATED FINANCIAL SUMMARY
(in millions except per share amounts)
                                                        
                             2nd Qtr. 1st Qtr. 2nd Qtr. Six Months Ended
                             Feb. 28, Nov. 29, Mar. 1,  Feb. 28, Mar. 1,
                             2013     2012     2012     2013     2012
                                                                 
Net sales                     $2,078   $1,834   $2,009   $3,912   $4,099
Cost of goods sold            1,712    1,617    1,799    3,329    3,584
Gross margin                  366      217      210      583      515
Selling, general and          123      119      174      242      325
administrative
Research and development     214      224      222      438      452
Other operating (income)      52       (29)     18       23       13
expense, net (1)(2)
Operating loss                (23)     (97)     (204)    (120)    (275)
Interest income (expense),    (53)     (54)     (33)     (107)    (66)
net
Other non-operating income    (159)    (59)     37       (218)    26
(expense), net (2)
Income tax (provision)        9        (13)     (9 )     (4 )     (7)
benefit (3)
Equity in net losses of       (58)      (52)      (73)      (110)     (147)
equity method investees
Net income attributable to    (2)       --        --        (2)       --
noncontrolling interests
Net loss attributable to      $(286)   $(275)   $(282)   $(561)   $(469)
Micron
                                                                 
Loss per share:                                                   
Basic                         $(0.28)  $(0.27)  $(0.29)  $(0.55)  $(0.48)
Diluted                       (0.28)   (0.27)   (0.29)   (0.55)   (0.48)
                                                                 
Number of shares used in per                                      
share calculations:
Basic                         1,016.0  1,013.7  982.8    1,014.9  982.1
Diluted                       1,016.0  1,013.7  982.8    1,014.9  982.1


CONSOLIDATED FINANCIAL SUMMARY, Continued

                                        As of
                                        Feb. 28, Nov. 29, Aug. 30,
                                        2013     2012     2012
                                                          
Cash and short-term investments          $2,228   $2,271   $2,559
Receivables                              1,226    1,139    1,289
Inventories                              1,721    1,831    1,812
Total current assets                     5,364    5,315    5,758
Long-term marketable investments         546      527      374
Property, plant and equipment, net       6,973    7,199    7,103
Total assets                             13,912   14,067   14,328
                                                          
Accounts payable and accrued expenses    1,498    1,584    1,641
Current portion of long-term debt        350      266      224
Total current liabilities                2,117    2,138    2,243
Long-term debt (4)(5)                    3,301    3,169    3,038
                                                          
Total Micron shareholders' equity        7,231    7,469    7,700
Noncontrolling interests in subsidiaries 729      717      717
Total equity (4)(5)                      7,960    8,186    8,417
                                                          
                                                          
                                                  Six Months Ended
                                                  Feb. 28, Mar. 1,
                                                  2013     2012
                                                           
Net cash provided by operating activities          $470     $978
Net cash used for investing activities             (999)    (1,183)
Net cash provided by financing activities          131      139
                                                           
Depreciation and amortization                      970      1,167
Expenditures for property, plant and equipment     (761)    (1,089)
Payments on equipment purchase contracts           (130)    (86)
                                                           

(1) Other operating (income) expense consisted of the following:

                             2nd Qtr. 1st Qtr. 2nd Qtr. Six Months Ended
                             Feb. 28, Nov. 29, Mar. 1,  Feb. 28, Mar. 1,
                             2013     2012     2012     2013     2012
Loss on impairment of MIT     $62      $--      $--      $62      $--
(Gain) loss on disposition of (10)      (5)       5         (15)      6
property, plant and equipment
Other                         --       (24)     13       (24)     7
                             $52      $(29)    $18      $23      $13

On February 25, 2013, the company entered into an agreement to sell Micron
Technology Italia, Srl., ("MIT") a wholly-owned subsidiary, including its 200
millimeter semiconductor wafer fabrication facility assets in Avezzeno, Italy,
to LFoundry Marsica S.R.L. ("LFoundry"). As consideration for the shares of
MIT, the company expects to receive a long-term note from LFoundry. Under the
terms of the agreements, the company will assign to LFoundry its supply
agreement with Aptina Imaging Corporation ("Aptina") for CMOS image sensors
manufactured at the Avezzano facility. The assets and liabilities of MIT were
classified as held for sale in the second quarter of fiscal 2013 and were
written down to their estimated fair values. As a result, in the second
quarter of fiscal 2013, the company recorded an impairment loss of $62
million.

Other operating income for the first quarter of fiscal 2013 included a gain of
$25 million resulting from the termination of a lease by Transform Solar to a
portion of the company's manufacturing facilities in Boise, Idaho.


(2)Other non-operating income (expense) consisted of the following:

                             2nd Qtr. 1st Qtr. 2nd Qtr. Six Months Ended
                             Feb. 28, Nov. 29, Mar. 1,  Feb. 28, Mar. 1,
                             2013     2012     2012     2013     2012
Gain (loss) from changes in   $(127)   $(59)    $(2)     $(186)   $(13)
currency exchange rates
Loss on extinguishment of     (31)     --       --       (31)     --
debt
Gain from disposition of      --       --       39       --       39
investments
Other                         (1)      --       --       (1)      --
                             $(159)   $(59)    $37      $(218)   $26

Gain (loss) from changes in currency exchange rates in the second quarter and
first six months of fiscal 2013 included currency losses of $120 million and
$178 million, respectively, from changes in the market value of currency
hedges executed in connection with the company's planned acquisition of Elpida
Memory, Inc. and Rexchip Electronics Corporation. Loss from extinguishment of
debt for the second quarter of fiscal 2013 included a $31 million loss
recognized in connection with the partial repurchase of the 2014 Notes.

In order to improve comparability with the company's industry peers, gains and
losses from currency exchange rates have been reclassified to from operating
to non-operating. As a result, $59 million of losses for the first quarter of
fiscal 2013 and $2 million and $13 million of losses for the second quarter
and first six months of fiscal 2012, respectively, were reclassified from the
amounts previously reported in other operating (income) expense to other
non-operating income (expense).

(3) Income taxes for the second quarter of fiscal 2013 included tax benefits
of $19 million related to favorable adjustments in certain jurisdictions.
Income taxes for the first six months of fiscal 2012 included a tax benefit of
$14 million related to the favorable resolution of certain prior year tax
matters. Remaining taxes in fiscal 2013 and 2012 primarily reflected taxes on
the company's non-U.S. operations. The company has a valuation allowance for
its net deferred tax asset associated with its U.S. operations. Taxes
attributable to the company's U.S. operations in fiscal 2013 and 2012 were
substantially offset by changes in the valuation allowance.

(4) On February 12, 2013, the company issued $300 million of 1.625%
Convertible Senior Notes with a stated maturity of February 2033 (the "2033E
Notes") and $300 million of 2.125% Convertible Senior Notes with a stated
maturity of February 2033 (the "2033F Notes" and, together with the 2033E
Notes, the "2033 Notes"). Issuance costs for the 2033 Notes totaled $16
million. The initial conversion rates for the 2033 Notes are 91.4808 shares of
common stock per $1,000 principal amount, equivalent to initial conversion
prices of approximately $10.93 per share of common stock. Upon the issuance of
the 2033 Notes, the company recorded $526 million of debt, $72 million of
additional capital and $14 million of deferred debt issuance costs (included
in other noncurrent assets). The difference between the debt recorded at
inception and the principal amount ($31 million for the 2033E Notes and $43
million for the 2033F Notes) is being accreted to principal through interest
expense through February 2018 for the 2033E Notes and February 2020 for the
2033F Notes, the expected life of the notes.

Concurrent with the offering of the 2033 Notes, the company entered into
capped call transactions (the "2013E Capped Calls" and "2013F Capped Calls")
that have initial strike prices of approximately $10.93 per share, subject to
certain adjustments, which are equal to the initial conversion prices of the
2033 Notes. The Capped Calls have cap prices of $14.51 per share and are
intended to reduce the potential dilution upon conversion of the 2033E and
2033F Notes. The Capped Calls are considered capital transactions and the
related cost of $48 million was recorded as a charge to additional capital.

During the first quarter of fiscal 2013, the company entered into two credit
facilities. The first was a revolving credit facility providing for borrowings
of up to $255 million. Amounts drawn under the facility would be
collateralized by certain accounts receivable. As of the end of the second
quarter of fiscal 2013, no amounts had been drawn under the facility. The
second was a term note providing for borrowings of up to $214 million. Amounts
drawn under the facility are collateralized by semiconductor production
equipment. As of the end of the second quarter of fiscal 2013, the note was
fully drawn.

(5) In connection with the offering of the 2033 Notes, the company
repurchased $464 million in aggregate principal amount of its 2014 Notes for
$477 million in cash in the second quarter of fiscal 2013. As a result, the
company reduced debt, accrued interest and debt issuance costs by an aggregate
of $431 million; reduced equity by $15 million for the equity component of the
2014 Notes; and recognized a loss of $31 million.


CONTACT: Kipp A. Bedard
         Investor Relations
         kbedard@micron.com
         (208) 368-4465
        
         Daniel Francisco
         Media Relations
         dfrancisco@micron.com
         (208) 368-5584

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