UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of The Securities Exchange Act of
1934
December
20, 2007
Date
of
Report (date of earliest event reported)
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MICRON
TECHNOLOGY, INC.
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(Exact
name of registrant as specified in its
charter)
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Delaware
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1-10658
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75-1618004
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(State
or other jurisdiction of incorporation)
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(Commission
File Number)
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(I.R.S.
Employer Identification No.)
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8000
South Federal Way
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Boise,
Idaho 83716-9632
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(Address
of principal executive offices)
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(208)
368-4000
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(Registrant’s
telephone number, including area code)
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Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
c
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
c
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
c
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
c
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4c))
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Item
2.02.
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Results
of Operations and Financial
Condition.
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On
December 20, 2007, Micron Technology, Inc. announced its financial results
for
the quarter ended November 29, 2007. The full text of the press
release issued in connection with the announcement is attached as Exhibit
99.1
to this Current Report on Form 8-K.
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Item
2.05.
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Costs
Associated with Exit or Disposal
Activities.
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The
Company is pursuing a number of initiatives beginning in the fourth quarter
of
fiscal 2007 to drive greater cost efficiencies and revenue growth across
its
operations. These initiatives include workforce reductions in certain
areas of the Company as the Company’s business is
realigned. Additional initiatives include establishing certain
operations closer in location to the Company’s global customers, evaluating
functions more efficiently performed through partnerships or other outside
relationships and reducing the Company’s overhead costs to meet or exceed
industry benchmarks.
During
the first quarter of fiscal 2008 and the fourth quarter of fiscal 2007, the
Company recorded restructure charges of $13 million and $19 million,
respectively, consisting primarily of employee severance and related costs
resulting from a reduction in the Company’s workforce. In addition, in the first
quarter of fiscal 2008, the Company recorded a charge to write down to their
estimated fair values certain facilities expected to be sold. The
Company anticipates that it will incur some level of restructure charges
through
the end of fiscal 2008 as it continues to implement these initiatives, but
is
currently unable to estimate the aggregate amount of the charges.
This
Current Report on Form 8-K contains forward-looking statements regarding
future
restructure charges. Actual events or results may differ materially from
those
contained in the forward-looking statements. Please refer to the documents
the
Company files on a consolidated basis from time to time with the Securities
and
Exchange Commission, specifically the Company's most recent Form 10-K and
Form
10-Q. These documents contain and identify important factors that could cause
the actual results for the Company on a consolidated basis to differ materially
from those contained in our forward-looking statements (see Certain Factors).
Although we believe that the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results, levels of
activity, performance or achievements. We are under no duty to update any
of the
forward-looking statements after the date of this report to conform to actual
results.
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Item
9.01.
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Financial
Statements and Exhibits.
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(d) Exhibits.
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The
following exhibits are filed
herewith:
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Exhibit
No.
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Description
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99.1
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Press
Release issued on December 20, 2007
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SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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MICRON
TECHNOLOGY, INC.
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Date:
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December
20, 2007
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By:
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/s/
Roderic W. Lewis
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Name:
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Roderic
W. Lewic
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Title:
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Vice
President of Legal Affairs, General Counsel
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and
Corporate Secretary
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INDEX
TO EXHIBITS FILED WITH
THE
CURRENT REPORT ON FORM 8-K DATED DECEMBER 20, 2007
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Exhibit
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Description
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99.1
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Press
Release issued on December 20, 2007
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EXHIBIT
99.1
FOR
IMMEDIATE RELEASE
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Contacts:
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Kipp
A. Bedard
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Daniel
Francisco
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Investor
Relations
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Media
Relations
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kbedard@micron.com
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dfrancisco@micron.com
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(208)
368-4400
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(208)
368-5584
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MICRON
TECHNOLOGY, INC., REPORTS RESULTS FOR THE
FIRST
QUARTER OF FISCAL 2008
BOISE,
Idaho, December 20, 2007 – Micron Technology, Inc., (NYSE: MU) today
announced results of operations for the company’s first quarter of fiscal 2008,
which ended November 29, 2007. For the first quarter of fiscal 2008, the company
incurred a net loss of $262 million, or $0.34 per diluted share, on net sales
of
$1.5 billion. These results compare to a net loss of $158 million, or $0.21
per
diluted share, on net sales of $1.4 billion for the fourth quarter of fiscal
2007.
The
company’s growth in revenue in the first quarter compared to the previous
quarter was primarily driven by significant sales volume increases in memory
products (for both DRAM and NAND Flash). Sales of CMOS image sensors products
in
the first quarter of fiscal 2008 also increased approximately 15 percent
compared to the previous quarter as a result of a higher level of unit sales.
Megabit sales volume for DRAM and NAND Flash memory products increased
approximately 25 percent and 60 percent, respectively, comparing the first
quarter to the previous quarter, primarily as a result of higher levels of
production and strong demand. However, the company’s first quarter results
continued to be significantly affected by industry supply/demand dynamics.
Average selling prices decreased approximately 20 percent for DRAM and 30
percent for NAND Flash memory products compared to the already low prices
realized in the fourth quarter of fiscal 2007. Primarily due to prevailing
market conditions, the company recorded a $62 million write-down of its finished
goods and work in process inventories for memory products to reduce their
carrying values to their estimated market values. This write-down is included
in
the company’s reported cost of goods sold for the first quarter of fiscal
2008.
Despite
the write-down, the company achieved a decrease in cost of goods sold per
megabit in the first quarter of fiscal 2008 of approximately 10 percent and
15
percent for DRAM and NAND Flash memory products, respectively. Higher levels
of
production and lower manufacturing costs in the first quarter of fiscal 2008
compared to the fourth quarter of fiscal 2007 were a result of the company’s
acceleration of industry-leading process technology, transitions to higher
density memory products and significant improvements and growth in the company’s
300mm operations. The company continues to ramp production of 300mm NAND wafers
at its IM Flash joint venture fab in Lehi, Utah and 300mm DRAM wafers at its
TECH Semiconductor operation in Singapore.
The
company ended the first quarter with more than $2 billion in cash and
investments. The company had capital expenditures of approximately $885 million
during the first quarter and received $150 million in cash contributions from
Intel Corporation, a partner in the IM Flash joint ventures. The company
estimates capital expenditures aggregating between $2.5 billion and $3 billion
for the 2008 fiscal year, of which approximately $500 million is estimated
to be
funded by contributions from joint venture partners.
The
company will host a conference call today at 2:30 p.m. MST to discuss its
financial results. The call, audio and slides will be available online at
www.micron.com. A webcast replay will be available on the company’s Web site
until December 20, 2008. A taped audio replay of the conference call will also
be available at (706) 645-9291 (conference number: 27073959) beginning at 5:30
p.m. MST today and continuing until 5:30 p.m. MST on December 27,
2007.
Micron
Technology, Inc., is one of the world's leading providers of advanced
semiconductor solutions. Through its worldwide operations, Micron manufactures
and markets DRAMs, NAND flash memory, CMOS image sensors, other semiconductor
components, and memory modules for use in leading-edge computing, consumer,
networking and mobile products. Micron's common stock is traded on the New
York
Stock Exchange (NYSE) under the MU symbol. To learn more about Micron
Technology, Inc., visit www.micron.com.
MICRON
TECHNOLOGY, INC.
CONSOLIDATED
FINANCIAL SUMMARY
(Amounts
in millions except per share data)
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1st
Qtr.
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4th
Qtr.
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1st
Qtr.
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|||||||||
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Nov.
29,
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Aug.
30,
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Nov.
30,
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||||||||||
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2007
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2007
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2006
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||||||||||
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Net
sales
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$ |
1,535
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$ |
1,437
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$ |
1,530
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||||||
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Cost
of goods sold (1)
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1,530
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1,264
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1,088
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Gross
margin
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5
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173
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442
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Selling,
general and administrative
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112
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143
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180
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|||||||||
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Research
and development
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163
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184
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183
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Other
operating (income) expense (2)
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(23 | ) | (12 | ) | (31 | ) | ||||||
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Restructure
(3)
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13
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19
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--
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|||||||||
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Operating
income (loss)
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(260 | ) | (161 | ) |
110
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Interest
income (expense), net
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9
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15
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40
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|||||||||
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Other
non-operating income (expense)
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(1 | ) |
--
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3
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||||||||
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Income
tax (provision) (4)
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(7 | ) | (6 | ) | (9 | ) | ||||||
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Noncontrolling
interests in net income
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(3 | ) | (6 | ) | (29 | ) | ||||||
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Net
income (loss)
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$ | (262 | ) | $ | (158 | ) | $ |
115
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Earnings
(loss) per share:
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||||||||||||
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Basic
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$ | (0.34 | ) | $ | (0.21 | ) | $ |
0.15
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Diluted
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(0.34 | ) | (0.21 | ) |
0.15
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Number
of shares used in per share calculations:
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||||||||||||
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Basic
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771.9
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770.9
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767.0
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|||||||||
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Diluted
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771.9
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770.9
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779.6
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|||||||||
CONSOLIDATED
FINANCIAL SUMMARY, Continued
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As
of
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||||||||
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Nov.
29,
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Aug.
30,
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|||||||
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2007
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2007
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|||||||
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Cash
and short-term investments
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$ |
2,031
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$ |
2,616
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Receivables
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1,067
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994
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Inventories
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1,443
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1,532
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Total
current assets
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4,652
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5,234
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Property,
plant and equipment, net
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8,576
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8,279
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Goodwill
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515
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515
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Total
assets
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14,498
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14,818
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||||||
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Accounts
payable and accrued expenses
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1,317
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1,385
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Current
portion of long-term debt
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281
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423
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Total
current liabilities
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1,852
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2,026
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Long-term
debt
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1,936
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1,987
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||||||
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Noncontrolling
interests in subsidiaries
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2,760
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2,607
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||||||
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Total
shareholders’ equity
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7,501
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7,752
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Quarter
Ended
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||||||||
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Nov.
29,
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Nov.
30,
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|||||||
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2007
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2006
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|||||||
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Net
cash provided by operating activities
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$ |
276
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$ |
429
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Net
cash used for investing activities
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(406 | ) | (768 | ) | ||||
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Net
cash provided by (used for) financing activities
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(182 | ) |
211
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|||||
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Depreciation
and amortization
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504
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380
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||||||
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Expenditures
for property, plant and equipment
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(765 | ) | (1,099 | ) | ||||
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Cash
received from noncontrolling interests
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150
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388
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||||||
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Payments
on equipment purchase contracts
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(122 | ) | (161 | ) | ||||
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Noncash
equipment acquisitions on contracts payable and capital
leases
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152
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208
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||||||
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(1)
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The
results for the first quarter of fiscal 2008 and the fourth quarter
of
fiscal 2007 include charges of $62 million and $20 million, respectively,
to write down the carrying value of work in process and finished
goods
inventories of memory products to their estimated fair market
values.
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(2)
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Other
operating (income) expense for the first quarter of fiscal 2008 includes
$38 million in receipts from the U.S. government in connection with
anti-dumping tariffs, losses of $27 million from changes in currency
exchange rates and gains of $10 million on disposals of semiconductor
equipment. Other operating (income) expense for the fourth
quarter of fiscal 2007 includes gains of $18 million from disposals
of
semiconductor equipment and losses of $11 million from changes in
currency
exchange rates. Other operating income for the first quarter of
fiscal 2007 includes a gain of $30 million from the sale of certain
intellectual property to Toshiba
Corporation.
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(3)
|
In
the fourth quarter of fiscal 2007, the company announced it was pursuing
a
number of initiatives to drive greater cost efficiencies and revenue
growth across its operations. During the first quarter of fiscal
2008 and
the fourth quarter of fiscal 2007, the company recorded restructure
charges of $13 million and $19 million, respectively, consisting
primarily
of employee severance and related costs resulting from a reduction
in the
company’s workforce. In addition, in the first quarter of fiscal 2008, the
company recorded a charge to write down to their estimated fair values
certain facilities expected to be sold. At the end of the first quarter
of
fiscal 2008, liabilities for unpaid portions of the restructure charge
were approximately $4 million.
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(4)
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Income
taxes for 2008 and 2007 primarily reflect taxes on the company’s non-U.S.
operations and U.S. alternative minimum tax. The company has a valuation
allowance for its net deferred tax asset associated with its U.S.
operations. Tax attributable to U.S. operations in 2008 and 2007
were
substantially offset by changes in the valuation
allowance.
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