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MICRON TECHNOLOGY INC Quarterly Report for Q3 Ended Jun 1, 2006

Filing Date
Filed July 11, 2006
Period End
June 1, 2006
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 July 11, 2006. Cited figures are marked; the original filing is the authoritative source.

Micron Technology Inc. reported a return to profitability in the third quarter of fiscal year 2006, with net income of $88.5 milliona ($0.12 per diluted share), a significant improvement from a loss of $127.9 million ($0.20 per diluted share) in the same period last year.

This turnaround was driven by strong growth in the Imaging segment, which saw sales more than triple year-over-year, and a notable increase in DRAM average selling prices. The company also benefited from a strategic shift towards higher-margin products and ongoing diversification beyond traditional PC DRAM. Financially, the company demonstrated improved liquidity, with cash and investments increasing significantly to $2.8 billionb.

This was supported by strong operating cash flows, partly due to a substantial $230 millionc payment from Intel for NAND Flash technology. Significant investments in capital expenditures for future growth, particularly in the IMFT and TECH joint ventures, were also highlighted. However, the company continues to face challenges from declining average selling prices in memory products, intense industry competition, and ongoing legal proceedings, including antitrust investigations and intellectual property disputes.

02—Key points

Key Highlights

  1. Returned to profitability with a net income of $88.5 million in Q3 FY2006, a significant turnaround from a loss in the prior year.
  2. Imaging segment sales surged by 162% year-over-year, now representing 16.2% of total net sales.
  3. Overall gross margin improved to 25.1% from 8.2% in the prior year's quarter, driven by Memory and Imaging segment performance.
  4. Cash and marketable investment securities increased substantially to $2.8 billion as of June 1, 2006.
  5. The company acquired Lexar Media, Inc. for approximately $900 million in a stock-for-stock merger, diversifying its product portfolio.
  6. Consolidation of the TECH Semiconductor Singapore Pte. Ltd. joint venture began in Q3 FY2006, impacting financial results.
  7. Significant capital expenditures are planned for FY2006 ($2.2 billion) and FY2007 ($3.5 billion), reflecting investment in future growth, particularly in joint ventures.

03—Questions

Frequently Asked Questions

  1. What is the company's financial performance for the quarter ending June 1, 2006?

    Micron Technology reported a net income of $88.5 million, or $0.12 per diluted share, for the quarter ended June 1, 2006. This is a significant improvement compared to a net loss of $127.9 million, or $0.20 per diluted share, in the same quarter of the previous year. Revenue for the quarter was $1,312.3 million, up 24% from $1,054.2 million in the prior year's comparable quarter.

  2. What were the key drivers of the improved financial results?

    The improved performance was driven by strong growth in the Imaging segment, with sales increasing by 162% year-over-year, and a rebound in DRAM average selling prices. The company's strategic shift towards higher-margin products, including CMOS image sensors and NAND Flash memory, also contributed positively. Furthermore, a substantial $230 million payment from Intel for NAND Flash technology and license played a role in the operating results.

  3. What are the major upcoming investments or strategic initiatives mentioned in the report?

    Micron Technology plans significant capital expenditures for FY2006 ($2.2 billion) and FY2007 ($3.5 billion), focusing on its joint ventures, IMFT and TECH. The company also recently acquired Lexar Media, Inc. to expand its flash memory product offerings and began consolidating the TECH joint venture's financial results. These initiatives indicate a strategic focus on diversifying its product portfolio and increasing production capacity in key growth areas like NAND Flash and imaging sensors.

  4. What are the significant legal and risk factors mentioned by the company?

    The company is involved in several significant legal proceedings, including intellectual property disputes with Rambus and Tessera, antitrust investigations by the DOJ and various state attorneys general concerning DRAM pricing, and securities class action lawsuits. These legal matters, along with intense industry competition and fluctuations in semiconductor memory prices, are identified as key risks that could materially adversely affect the company's business, results of operations, or financial condition.

04—Continue

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