Quarterly Financial Results | ||||||||||||
(in millions, except per share amounts) |
GAAP(1)
|
Non-GAAP(2)
| ||||||||||
FQ4-23 | FQ3-23 | FQ4-22 | FQ4-23 | FQ3-23 | FQ4-22 | |||||||
Revenue | $ | 4,010 | $ | 3,752 | $ | 6,643 | $ | 4,010 | $ | 3,752 | $ | 6,643 |
Gross margin | (435) | (668) | 2,622 | (366) | (603) | 2,676 | ||||||
percent of revenue | (10.8 | %) | (17.8 | %) | 39.5 | % | (9.1 | %) | (16.1 | %) | 40.3 | % |
Operating expenses | 1,037 | 1,093 | 1,101 | 842 | 866 | 1,014 | ||||||
Operating income (loss) | (1,472) | (1,761) | 1,521 | (1,208) | (1,469) | 1,662 | ||||||
percent of revenue | (36.7 | %) | (46.9 | %) | 22.9 | % | (30.1 | %) | (39.2 | %) | 25.0 | % |
Net income (loss) | (1,430) | (1,896) | 1,492 | (1,177) | (1,565) | 1,621 | ||||||
Diluted earnings (loss) per share | (1.31) | (1.73) | 1.35 | (1.07) | (1.43) | 1.45 |
Annual Financial Results | ||||||||
(in millions, except per share amounts) |
GAAP(1)
|
Non-GAAP(2)
| ||||||
FY 23 | FY 22 | FY 23 | FY 22 | |||||
Revenue | $ | 15,540 | $ | 30,758 | $ | 15,540 | $ | 30,758 |
Gross margin | (1,416) | 13,898 | (1,196) | 14,113 | ||||
percent of revenue | (9.1 | %) | 45.2 | % | (7.7 | %) | 45.9 | % |
Operating expenses | 4,329 | 4,196 | 3,623 | 3,832 | ||||
Operating income (loss) | (5,745) | 9,702 | (4,819) | 10,281 | ||||
percent of revenue | (37.0 | %) | 31.5 | % | (31.0 | %) | 33.4 | % |
Net income (loss) | (5,833) | 8,687 | (4,862) | 9,475 | ||||
Diluted earnings (loss) per share | (5.34) | 7.75 | (4.45) | 8.35 |
FQ1-24 |
GAAP(1) Outlook
|
Non-GAAP(2) Outlook
|
Revenue
| $4.40 billion ± $200 million | $4.40 billion ± $200 million |
Gross margin
| (6.0%) ± 2.0% | (4.0%) ± 2.0% |
Operating expenses
| $1.01 billion ± $15 million | $900 million ± $15 million |
Diluted earnings (loss) per share
| ($1.24) ± $0.07 | ($1.07) ± $0.07 |
4th Qtr. | 3rd Qtr. | 4th Qtr. | Year Ended | |||||||
August 31, 2023 |
June 1, 2023 |
September 1, 2022 |
August 31, 2023 |
September 1, 2022 | ||||||
Revenue | $ | 4,010 | $ | 3,752 | $ | 6,643 | $ | 15,540 | $ | 30,758 |
Cost of goods sold | 4,445 | 4,420 | 4,021 | 16,956 | 16,860 | |||||
Gross margin | (435) | (668) | 2,622 | (1,416) | 13,898 | |||||
Research and development | 719 | 758 | 839 | 3,114 | 3,116 | |||||
Selling, general, and administrative | 219 | 219 | 280 | 920 | 1,066 | |||||
Restructure and asset impairments | 4 | 68 | 5 | 171 | 48 | |||||
Other operating (income) expense, net | 95 | 48 | (23) | 124 | (34) | |||||
Operating income (loss) | (1,472) | (1,761) | 1,521 | (5,745) | 9,702 | |||||
Interest income | 134 | 127 | 54 | 468 | 96 | |||||
Interest expense | (129) | (119) | (45) | (388) | (189) | |||||
Other non-operating income (expense), net | 9 | - | 23 | 7 | (38) | |||||
(1,458) | (1,753) | 1,553 | (5,658) | 9,571 | ||||||
Income tax (provision) benefit | 24 | (139) | (56) | (177) | (888) | |||||
Equity in net income (loss) of equity method investees | 4 | (4) | (5) | 2 | 4 | |||||
Net income (loss) | $ | (1,430) | $ | (1,896) | $ | 1,492 | $ | (5,833) | $ | 8,687 |
Earnings (loss) per share | ||||||||||
Basic | $ | (1.31) | $ | (1.73) | $ | 1.36 | $ | (5.34) | $ | 7.81 |
Diluted | (1.31) | (1.73) | 1.35 | (5.34) | 7.75 | |||||
Number of shares used in per share calculations | ||||||||||
Basic | 1,095 | 1,094 | 1,097 | 1,093 | 1,112 | |||||
Diluted | 1,095 | 1,094 | 1,106 | 1,093 | 1,122 |
As of |
August 31, 2023 |
June 1, 2023 |
September 1, 2022 | |||
Assets | ||||||
Cash and equivalents | $ | 8,577 | $ | 9,298 | $ | 8,262 |
Short-term investments | 1,017 | 1,054 | 1,069 | |||
Receivables | 2,443 | 2,429 | 5,130 | |||
Inventories | 8,387 | 8,238 | 6,663 | |||
Other current assets | 820 | 715 | 657 | |||
Total current assets | 21,244 | 21,734 | 21,781 | |||
Long-term marketable investments | 844 | 973 | 1,647 | |||
Property, plant, and equipment | 37,928 | 38,727 | 38,549 | |||
Operating lease right-of-use assets | 666 | 655 | 678 | |||
Intangible assets | 404 | 410 | 421 | |||
Deferred tax assets | 756 | 708 | 702 | |||
Goodwill | 1,150 | 1,252 | 1,228 | |||
Other noncurrent assets | 1,262 | 1,221 | 1,277 | |||
Total assets | $ | 64,254 | $ | 65,680 | $ | 66,283 |
Liabilities and equity | ||||||
Accounts payable and accrued expenses | $ | 3,958 | $ | 4,177 | $ | 6,090 |
Current debt | 278 | 259 | 103 | |||
Other current liabilities | 529 | 668 | 1,346 | |||
Total current liabilities | 4,765 | 5,104 | 7,539 | |||
Long-term debt | 13,052 | 12,986 | 6,803 | |||
Noncurrent operating lease liabilities | 603 | 603 | 610 | |||
Noncurrent unearned government incentives | 727 | 632 | 589 | |||
Other noncurrent liabilities | 987 | 950 | 835 | |||
Total liabilities | 20,134 | 20,275 | 16,376 | |||
Commitments and contingencies | ||||||
Shareholders' equity | ||||||
Common stock | 124 | 124 | 123 | |||
Additional capital | 11,036 | 10,782 | 10,197 | |||
Retained earnings | 40,824 | 42,391 | 47,274 | |||
Treasury stock | (7,552) | (7,552) | (7,127) | |||
Accumulated other comprehensive income (loss) | (312) | (340) | (560) | |||
Total equity | 44,120 | 45,405 | 49,907 | |||
Total liabilities and equity | $ | 64,254 | $ | 65,680 | $ | 66,283 |
For the year ended |
August 31, 2023 |
September 1, 2022 | ||
Cash flows from operating activities | ||||
Net income (loss) | $ | (5,833) | $ | 8,687 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
| ||||
Depreciation expense and amortization of intangible assets | 7,756 | 7,116 | ||
Provision to write down inventories to net realizable value | 1,831 | - | ||
Stock-based compensation | 596 | 514 | ||
Goodwill impairment
| 101 | - | ||
Restructure and asset impairments
| 11 | 44 | ||
Loss on debt repurchases and conversions
| - | 83 | ||
Change in operating assets and liabilities:
| ||||
Receivables | 2,763 | 190 | ||
Inventories | (3,555) | (2,179) | ||
Accounts payable and accrued expenses | (2,104) | 744 | ||
Other | (7) | (18) | ||
Net cash provided by operating activities | 1,559 | 15,181 | ||
Cash flows from investing activities | ||||
Expenditures for property, plant, and equipment | (7,676) | (12,067) | ||
Purchases of available-for-sale securities | (723) | (1,770) | ||
Proceeds from maturities of available-for-sale securities | 1,566 | 1,321 | ||
Proceeds from government incentives | 710 | 115 | ||
Proceeds from sales of available-for-sale securities | 25 | 294 | ||
Proceeds from sale of Lehi, Utah fab | - | 888 | ||
Other | (93) | (366) | ||
Net cash provided by (used for) investing activities | (6,191) | (11,585) | ||
Cash flows from financing activities | ||||
Proceeds from issuance of debt | 6,716 | 2,000 | ||
Repayments of debt | (761) | (2,032) | ||
Payments of dividends to shareholders | (504) | (461) | ||
Repurchases of common stock - repurchase program | (425) | (2,432) | ||
Payments on equipment purchase contracts | (138) | (141) | ||
Other | 95 | 86 | ||
Net cash provided by (used for) financing activities | 4,983 | (2,980) | ||
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash
| (34) | (106) | ||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 317 | 510 | ||
Cash, cash equivalents, and restricted cash at beginning of period | 8,339 | 7,829 | ||
Cash, cash equivalents, and restricted cash at end of period | $ | 8,656 | $ | 8,339 |
4th Qtr. | 3rd Qtr. | 4th Qtr. | Year Ended | |||||||
August 31, 2023 |
June 1, 2023 |
September 1, 2022 |
August 31, 2023 |
September 1, 2022 | ||||||
Provision to write down inventory to NRV | $ | - | $ | (401) | $ | - | $ | (1,831) | $ | - |
Lower costs from sale of inventory written down in prior periods | 563 | 281 | - | 844 | - | |||||
$ | 563 | $ | (120) | $ | - | $ | (987) | $ | - |
4th Qtr. | 3rd Qtr. | 4th Qtr. | Year Ended | |||||||
August 31, 2023 |
June 1, 2023 |
September 1, 2022 |
August 31, 2023 |
September 1, 2022 | ||||||
GAAP gross margin | $ | (435) | $ | (668) | $ | 2,622 | $ | (1,416) | $ | 13,898 |
Stock-based compensation | 64 | 60 | 49 | 201 | 193 | |||||
Other | 5 | 5 | 5 | 19 | 22 | |||||
Non-GAAP gross margin | $ | (366) | $ | (603) | $ | 2,676 | $ | (1,196) | $ | 14,113 |
GAAP operating expenses | $ | 1,037 | $ | 1,093 | $ | 1,101 | $ | 4,329 | $ | 4,196 |
Stock-based compensation | (87) | (91) | (82) | (363) | (308) | |||||
Restructure and asset impairments | (4) | (68) | (5) | (171) | (48) | |||||
Goodwill impairment
| (101) | - | - | (101) | - | |||||
Litigation settlement | - | (68) | - | (68) | - | |||||
Other | (3) | - | - | (3) | (8) | |||||
Non-GAAP operating expenses | $ | 842 | $ | 866 | $ | 1,014 | $ | 3,623 | $ | 3,832 |
GAAP operating income (loss) | $ | (1,472) | $ | (1,761) | $ | 1,521 | $ | (5,745) | $ | 9,702 |
Stock-based compensation | 151 | 151 | 131 | 564 | 501 | |||||
Restructure and asset impairments | 4 | 68 | 5 | 171 | 48 | |||||
Goodwill impairment
| 101 | - | - | 101 | - | |||||
Litigation settlement | - | 68 | - | 68 | - | |||||
Other | 8 | 5 | 5 | 22 | 30 | |||||
Non-GAAP operating income (loss) | $ | (1,208) | $ | (1,469) | $ | 1,662 | $ | (4,819) | $ | 10,281 |
GAAP net income (loss)
| $ | (1,430) | $ | (1,896) | $ | 1,492 | $ | (5,833) | $ | 8,687 |
Stock-based compensation | 151 | 151 | 131 | 564 | 501 | |||||
Restructure and asset impairments | 4 | 68 | 5 | 171 | 48 | |||||
Goodwill impairment
| 101 | - | - | 101 | - | |||||
Litigation settlement | - | 68 | - | 68 | - | |||||
Loss on debt repurchases and conversions
| - | - | - | - | 83 | |||||
Other | 7 | 7 | 11 | 32 | 61 | |||||
Impact of Idaho income tax reform | - | - | - | - | 189 | |||||
Estimated tax effects of above and other tax adjustments
| (10) | 37 | (18) | 35 | (94) | |||||
Non-GAAP net income (loss) | $ | (1,177) | $ | (1,565) | $ | 1,621 | $ | (4,862) | $ | 9,475 |
GAAP weighted-average common shares outstanding - Diluted
| 1,095 | 1,094 | 1,106 | 1,093 | 1,122 | |||||
Adjustment for stock-based compensation
| - | - | 15 | - | 13 | |||||
Non-GAAP weighted-average common shares outstanding - Diluted
| 1,095 | 1,094 | 1,121 | 1,093 | 1,135 | |||||
GAAP diluted earnings (loss) per share
| $ | (1.31) | $ | (1.73) | $ | 1.35 | $ | (5.34) | $ | 7.75 |
Effects of the above adjustments
| 0.24 | 0.30 | 0.10 | 0.89 | 0.60 | |||||
Non-GAAP diluted earnings (loss) per share
| $ | (1.07) | $ | (1.43) | $ | 1.45 | $ | (4.45) | $ | 8.35 |
4th Qtr. | 3rd Qtr. | 4th Qtr. | Year Ended | |||||||
August 31, 2023 |
June 1, 2023 |
September 1, 2022 |
August 31, 2023 |
September 1, 2022 | ||||||
GAAP net cash provided by operating activities
| $ | 249 | $ | 24 | $ | 3,777 | $ | 1,559 | $ | 15,181 |
Expenditures for property, plant, and equipment
| (1,461) | (1,561) | (3,613) | (7,676) | (12,067) | |||||
Proceeds from sales of property, plant, and equipment | 18 | 34 | 30 | 92 | 117 | |||||
Payments on equipment purchase contracts
| (26) | (36) | (9) | (138) | (141) | |||||
Amounts funded by partners
| 462 | 184 | 11 | 710 | 115 | |||||
Investments in capital expenditures, net | (1,007) | (1,379) | (3,581) | (7,012) | (11,976) | |||||
Adjusted free cash flow
| $ | (758) | $ | (1,355) | $ | 196 | $ | (5,453) | $ | 3,205 |
FQ1-24 | GAAP Outlook | Adjustments | Non-GAAP Outlook | |
Revenue
|
$4.40 billion ± $200 million
| - |
$4.40 billion ± $200 million
| |
Gross margin
|
(6.0%) ± 2.0%
|
2.0%
| A |
(4.0%) ± 2.0%
|
Operating expenses
|
$1.01 billion ± $15 million
|
$113 million
| B |
$900 million ± $15 million
|
Diluted earnings (loss) per share(1)
|
($1.24) ± $0.07
|
$0.17
| A, B, C |
($1.07) ± $0.07
|
Non-GAAP Adjustments
(in millions)
| |||
A
|
Stock-based compensation - cost of goods sold
| $ | 66 |
A
|
Other - cost of goods sold
| 4 | |
B
|
Stock-based compensation - research and development
| 69 | |
B
|
Stock-based compensation - sales, general, and administrative
| 44 | |
C
| Tax effects of the above items and other tax adjustments | (1) | |
$ | 182 |
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Micron Technology Inc. published this content on 27 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 September 2023 20:03:21 UTC.