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MICRON TECHNOLOGY INC Quarterly Report for Q1 Ended Nov 28, 2002

Filing Date
Filed January 13, 2003
Period End
November 28, 2002
Security
MU
In the record · 2016–202610-K1110-Q348-K171

MU filed 11 annual reports (10-K), 34 quarterly reports (10-Q) and 171 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Dec ’16Dec ’16
  2. FY2019 annual report10-K · Oct ’19Oct ’19
  3. Leadership change8-K · Jan ’22Jan ’22
  4. Leadership change8-K · Oct ’25Oct ’25

01—Abstract

Summary

Summary of the 10-Q filed January 13, 2003. Cited figures are marked; the original filing is the authoritative source.

Micron Technology Inc. (MU) reported its first quarter fiscal year 2003 results on January 13, 2003, for the period ending November 28, 2002.

The company posted a net sales increase of 62% year-over-year to $685.1 milliona, driven by a 52% rise in average selling prices and a 6% increase in megabit sales volume. However, despite the top-line growth, Micron continued to report a net loss of $315.9 million, a wider loss than the $265.9 million reported in the same quarter last year. This widening loss was largely due to a significant inventory write-down of $90.8 million, compared to $172.8 million in the prior year's quarter, indicating ongoing challenges with pricing and inventory valuation in the volatile semiconductor market.

Operating expenses, particularly research and development, remained high, contributing to the overall loss. The company's financial position shows total assets of $7.39 billionb and total liabilities of $1.31 billion.

While cash and equivalents increased slightly to $401.3 millionc, the company's liquidity remains dependent on industry demand and pricing. Investors should note the significant legal proceedings, including an ongoing DOJ investigation into potential antitrust violations in the DRAM market and litigation with Rambus, which pose substantial risks to future financial performance and could lead to significant liabilities.

02—Key points

Key Highlights

  1. Net sales increased significantly by 62% year-over-year to $685.1 million, driven by higher average selling prices (up 52%) and a modest increase in sales volume (up 6%).
  2. Despite revenue growth, the company reported a net loss of $315.9 million for the quarter, an increase from the $265.9 million net loss in the prior year's quarter.
  3. Inventory write-downs amounted to $90.8 million, which, while lower than the $172.8 million in the prior year's quarter, still impacted profitability and highlights ongoing pricing pressures.
  4. Research and development expenses remained substantial at $154.5 million, reflecting continued investment in new technologies and products.
  5. The company has significant ongoing legal proceedings, including a DOJ investigation into alleged antitrust violations in the DRAM market and patent litigation with Rambus, which could result in substantial liabilities.
  6. Cash and cash equivalents increased slightly to $401.3 million, but overall liquidity is heavily dependent on semiconductor market conditions.
  7. The company plans significant capital expenditures, expecting to spend approximately $1 billion in fiscal 2003, contingent on market conditions.

03—Questions

Frequently Asked Questions

  1. What was Micron's revenue performance in the first quarter of fiscal 2003 compared to the previous year?

    Micron reported a 62% year-over-year increase in net sales, reaching $685.1 million for the quarter ended November 28, 2002. This growth was primarily driven by a 52% increase in average selling prices and a 6% rise in megabit sales volume.

  2. Despite increased sales, why did Micron report a larger net loss?

    Although sales improved, Micron's net loss widened to $315.9 million from $265.9 million in the prior year's quarter. This was significantly impacted by ongoing inventory write-downs, which totaled $90.8 million for the quarter, and high research and development expenses.

  3. What are the major legal risks facing Micron Technology?

    Micron faces significant legal challenges, including a Department of Justice investigation into potential antitrust violations in the DRAM industry and ongoing patent litigation with Rambus, Inc. Adverse outcomes in these matters could result in substantial financial liabilities and materially impact the company's operations and financial condition.

  4. How is Micron's liquidity situation?

    As of November 28, 2002, Micron had $401.3 million in cash and equivalents. The company stated its liquidity is highly dependent on overall industry demand for semiconductor memory and average selling prices, and it expects significant capital spending of approximately $1 billion in fiscal 2003, depending on market conditions.

04—Continue

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