What is Micron's financial performance for the second quarter of fiscal year 2002?

For the second quarter ended February 28, 2002, Micron reported net sales of $645.9 million and a net loss of $30.4 million. This represents a sequential improvement in sales and a reduction in net loss compared to the prior year period.

What are the key drivers behind the revenue increase in the current quarter?

The significant sequential increase in net sales was primarily driven by a substantial rise in average selling prices (ASPs) for semiconductor memory products, which increased by approximately 70% from the first quarter of 2002. Total megabits sold also increased by about 55% year-over-year.

What is the status of the proposed acquisition of Toshiba's DRAM business?

Micron has entered into a memorandum of understanding to acquire substantially all of the assets of Toshiba's DRAM business. The purchase price is expected to be $250 million in cash and 1.5 million shares of Micron's common stock. The transaction is expected to close in the second quarter of calendar 2002, subject to definitive agreements and regulatory approvals.

What is the company's liquidity position?

As of February 28, 2002, Micron had $677.9 million in cash and equivalents and $803.0 million in liquid investments, totaling $1.48 billion. The company generated $316.0 million in cash from operating activities during the first six months of fiscal 2002, which included a significant income tax refund.

MU 10-Q Quarterly Report Q2 FY2002 — Revenue, Net Income, EPS

Summary

Micron Technology, Inc. reported a net loss of $30.4 million for the second quarter ended February 28, 2002, on net sales of $645.9 million. This represents a significant improvement from the net loss of $88.3 million in the prior year period. The company saw a substantial increase in sales sequentially, up 52% from the previous quarter, driven by a sharp increase in average selling prices (ASPs) of semiconductor memory products. Despite this revenue recovery, the industry continues to face challenging pricing conditions, as evidenced by a year-over-year decline in ASPs of 58% for the quarter. For the first six months of fiscal year 2002, Micron reported a net loss of $296.3 million on net sales of $1.07 billion, compared to a net income of $263.9 million on net sales of $2.64 billion in the prior year period. The company's cash position remains strong, with $677.9 million in cash and equivalents, and operating activities generated $316.0 million in cash during the first six months. Management is actively pursuing strategic initiatives, including a proposed acquisition of Toshiba's DRAM business, to strengthen its market position.

Key Highlights

1Net sales for the quarter increased 52% sequentially to $645.9 million, recovering from $424 million in the prior quarter.
2Despite a sequential sales increase, year-over-year net sales declined 39% due to a 58% decrease in average selling prices (ASPs) for memory products.
3The company reported a net loss of $30.4 million for the quarter, a significant improvement from a net loss of $88.3 million in the same quarter last year.
4Operating cash flow was positive at $316.0 million for the first six months of the fiscal year, aided by a significant income tax refund.
5Micron has entered into a memorandum of understanding to acquire substantially all of the assets of Toshiba's DRAM business for $250 million in cash and 1.5 million shares of common stock.
6Inventories continue to be a concern, with significant write-downs recorded in prior periods, though the gross margin improved sequentially due to increased ASPs and the effects of these write-downs.
7The company faces ongoing litigation with Rambus, Inc. concerning patent infringement, which could lead to significant liabilities.

MICRON TECHNOLOGY INC Quarterly Report for Q2 Ended Feb 28, 2002

Summary

Key Highlights

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