Micron Technology, Inc. Reports Results for the Third Quarter of Fiscal 2024

Quarterly Financial Results

(in millions, except per share amounts)

GAAP⁽¹⁾

Non-GAAP⁽²⁾

FQ3-24

FQ2-24

FQ3-23

FQ3-24

FQ2-24

FQ3-23

Revenue

$

6,811

$

5,824

$

3,752

$

6,811

$

5,824

$

3,752

Gross margin

1,832

1,079

(668

)

1,917

1,163

(603

)

percent of revenue

26.9

%

18.5

%

(17.8

%)

28.1

%

20.0

%

(16.1

%)

Operating expenses

1,113

888

1,093

976

959

866

Operating income (loss)

719

191

(1,761

)

941

204

(1,469

)

percent of revenue

10.6

%

3.3

%

(46.9

%)

13.8

%

3.5

%

(39.2

%)

Net income (loss)

332

793

(1,896

)

702

476

(1,565

)

Diluted earnings (loss) per share

0.30

0.71

(1.73

)

0.62

0.42

(1.43

)

FQ4-24

GAAP⁽¹⁾ Outlook

Non-GAAP⁽²⁾ Outlook

Revenue

$7.60 billion ± $200 million

$7.60 billion ± $200 million

Gross margin

33.5% ± 1.0%

34.5% ± 1.0%

Operating expenses

$1.19 billion ± $15 million

$1.06 billion ± $15 million

Diluted earnings per share

$0.61 ± $0.08

$1.08 ± $0.08

⁽¹⁾

GAAP represents U.S. Generally Accepted Accounting Principles.

⁽²⁾

Non-GAAP represents GAAP excluding the impact of certain activities, which management excludes in analyzing our operating results and understanding trends in our earnings, adjusted free cash flow, and business outlook. Further information regarding Micron’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release.

MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts)
(Unaudited)

3rd Qtr.

2nd Qtr.

3rd Qtr.

Nine months ended

May 30,
2024

February 29,
2024

June 1,
2023

May 30,
2024

June 1,
2023

Revenue

$

6,811

$

5,824

$

3,752

$

17,361

$

11,530

Cost of goods sold

4,979

4,745

4,420

14,485

12,511

Gross margin

1,832

1,079

(668

)

2,876

(981

)

Research and development

850

832

758

2,527

2,395

Selling, general, and administrative

291

280

219

834

701

Restructure and asset impairments

—

—

68

—

167

Other operating (income) expense, net

(28

)

(224

)

48

(267

)

29

Operating income (loss)

719

191

(1,761

)

(218

)

(4,273

)

Interest income

136

130

127

398

334

Interest expense

(150

)

(144

)

(119

)

(426

)

(259

)

Other non-operating income (expense), net

10

(7

)

—

(24

)

(2

)

715

170

(1,753

)

(270

)

(4,200

)

Income tax (provision) benefit

(377

)

622

(139

)

172

(201

)

Equity in net income (loss) of equity method investees

(6

)

1

(4

)

(11

)

(2

)

Net income (loss)

$

332

$

793

$

(1,896

)

$

(109

)

$

(4,403

)

Earnings (loss) per share

Basic

$

0.30

$

0.72

$

(1.73

)

$

(0.10

)

$

(4.03

)

Diluted

0.30

0.71

(1.73

)

(0.10

)

(4.03

)

Number of shares used in per share calculations

Basic

1,107

1,104

1,094

1,104

1,092

Diluted

1,123

1,114

1,094

1,104

1,092

MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)

As of

May 30,
2024

February 29,
2024

August 31,
2023

Assets

Cash and equivalents

$

7,594

$

8,016

$

8,577

Short-term investments

785

990

1,017

Receivables

5,131

4,296

2,443

Inventories

8,512

8,443

8,387

Other current assets

1,297

1,690

820

Total current assets

23,319

23,435

21,244

Long-term marketable investments

775

627

844

Property, plant, and equipment

37,926

37,587

37,928

Operating lease right-of-use assets

660

642

666

Intangible assets

413

414

404

Deferred tax assets

597

664

756

Goodwill

1,150

1,150

1,150

Other noncurrent assets

1,415

1,199

1,262

Total assets

$

66,255

$

65,718

$

64,254

Liabilities and equity

Accounts payable and accrued expenses

$

5,145

$

4,680

$

3,958

Current debt

398

344

278

Other current liabilities

1,297

1,235

529

Total current liabilities

6,840

6,259

4,765

Long-term debt

12,860

13,378

13,052

Noncurrent operating lease liabilities

609

593

603

Noncurrent unearned government incentives

672

662

727

Other noncurrent liabilities

1,049

956

987

Total liabilities

22,030

21,848

20,134

Commitments and contingencies

Shareholders’ equity

Common stock

125

125

124

Additional capital

11,794

11,564

11,036

Retained earnings

40,169

39,997

40,824

Treasury stock

(7,552

)

(7,552

)

(7,552

)

Accumulated other comprehensive income (loss)

(311

)

(264

)

(312

)

Total equity

44,225

43,870

44,120

Total liabilities and equity

$

66,255

$

65,718

$

64,254

MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)

Nine months ended

May 30,
2024

June 1,
2023

Cash flows from operating activities

Net income (loss)

$

(109

)

$

(4,403

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation expense and amortization of intangible assets

5,794

5,819

Stock-based compensation

620

448

Provision to write-down inventories to net realizable value

—

1,831

Change in operating assets and liabilities:

Receivables

(2,562

)

2,728

Inventories

(125

)

(3,406

)

Other current assets

(435

)

(35

)

Accounts payable and accrued expenses

846

(1,113

)

Other current liabilities

769

(677

)

Other

304

118

Net cash provided by operating activities

5,102

1,310

Cash flows from investing activities

Expenditures for property, plant, and equipment

(5,266

)

(6,215

)

Purchases of available-for-sale securities

(1,110

)

(496

)

Proceeds from maturities and sales of available-for-sale securities

1,433

1,192

Proceeds from government incentives

267

248

Other

(35

)

(90

)

Net cash provided by (used for) investing activities

(4,711

)

(5,361

)

Cash flows from financing activities

Repayments of debt

(1,816

)

(706

)

Payments of dividends to shareholders

(384

)

(378

)

Payments on equipment purchase contracts

(127

)

(112

)

Repurchases of common stock – repurchase program

—

(425

)

Proceeds from issuance of debt

999

6,716

Other

(40

)

—

Net cash provided by (used for) financing activities

(1,368

)

5,095

Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash

(15

)

(13

)

Net increase (decrease) in cash, cash equivalents, and restricted cash

(992

)

1,031

Cash, cash equivalents, and restricted cash at beginning of period

8,656

8,339

Cash, cash equivalents, and restricted cash at end of period

$

7,664

$

9,370

MICRON TECHNOLOGY, INC.
NOTES
(Unaudited)
(All tabular amounts in millions)

3rd Qtr.

2nd Qtr.

3rd Qtr.

Nine months ended

May 30,
2024

February 29,
2024

June 1,
2023

May 30,
2024

June 1,
2023

Provision to write down inventory to NRV

$

—

$

—

$

(401

)

$

—

$

(1,831

)

Lower costs from sale of inventory written down in prior periods

—

382

281

987

281

$

—

$

382

$

(120

)

$

987

$

(1,550

)

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

3rd Qtr.

2nd Qtr.

3rd Qtr.

May 30,
2024

February 29,
2024

June 1,
2023

GAAP gross margin

$

1,832

$

1,079

$

(668

)

Stock-based compensation

80

80

60

Other

5

4

5

Non-GAAP gross margin

$

1,917

$

1,163

$

(603

)

GAAP operating expenses

$

1,113

$

888

$

1,093

Stock-based compensation

(137

)

(129

)

(91

)

Restructure and asset impairments

—

—

(68

)

Patent cross-license agreement gain

—

200

—

Litigation settlement

—

—

(68

)

Non-GAAP operating expenses

$

976

$

959

$

866

GAAP operating income (loss)

$

719

$

191

$

(1,761

)

Stock-based compensation

217

209

151

Restructure and asset impairments

—

—

68

Patent cross-license agreement gain

—

(200

)

—

Litigation settlement

—

—

68

Other

5

4

5

Non-GAAP operating income (loss)

$

941

$

204

$

(1,469

)

GAAP net income (loss)

$

332

$

793

$

(1,896

)

Stock-based compensation

217

209

151

Restructure and asset impairments

—

—

68

Patent cross-license agreement gain

—

(200

)

—

Litigation settlement

—

—

68

Other

3

2

7

Estimated tax effects of above and other tax adjustments⁽¹⁾

150

(328

)

37

Non-GAAP net income (loss)

$

702

$

476

$

(1,565

)

GAAP weighted-average common shares outstanding – Diluted

1,123

1,114

1,094

Adjustment for stock-based compensation

13

20

—

Non-GAAP weighted-average common shares outstanding – Diluted

1,136

1,134

1,094

GAAP diluted earnings (loss) per share

$

0.30

$

0.71

$

(1.73

)

Effects of the above adjustments

0.32

(0.29

)

0.30

Non-GAAP diluted earnings (loss) per share

$

0.62

$

0.42

$

(1.43

)

⁽¹⁾

The second fiscal quarter tax benefit arose from applying our estimated annual effective tax rate to our year-to-date results. A portion of this benefit is included in our non-GAAP net income, with a larger benefit in our GAAP net income. The divergence between the GAAP and non-GAAP tax relates to the difference in our GAAP and non-GAAP estimated annual effective tax rates, which are computed separately.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued

3rd Qtr.

2nd Qtr.

3rd Qtr.

May 30,
2024

February 29,
2024

June 1,
2023

GAAP net cash provided by operating activities

$

2,482

$

1,219

$

24

Expenditures for property, plant, and equipment

(2,086

)

(1,384

)

(1,561

)

Payments on equipment purchase contracts

(45

)

(26

)

(36

)

Proceeds from sales of property, plant, and equipment

41

13

34

Proceeds from government incentives

33

149

184

Investments in capital expenditures, net

(2,057

)

(1,248

)

(1,379

)

Adjusted free cash flow

$

425

$

(29

)

$

(1,355

)

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

FQ4-24

GAAP Outlook

Adjustments

Non-GAAP Outlook

Revenue

$7.60 billion ± $200 million

—

$7.60 billion ± $200 million

Gross margin

33.5% ± 1.0%

1.0%

A

34.5% ± 1.0%

Operating expenses

$1.19 billion ± $15 million

$125 million

B

$1.06 billion ± $15 million

Diluted earnings per share⁽¹⁾

$0.61 ± $0.08

$0.47

A, B, C

$1.08 ± $0.08

Non-GAAP Adjustments
(in millions)

A

Stock-based compensation – cost of goods sold

$

84

A

Other – cost of goods sold

4

B

Stock-based compensation – research and development

77

B

Stock-based compensation – sales, general, and administrative

48

C

Tax effects of the above items and other tax adjustments

315

$

528

⁽¹⁾

GAAP earnings per share based on approximately 1.12 billion diluted shares and non-GAAP earnings per share based on approximately 1.14 billion diluted shares.