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MICRON TECHNOLOGY INC Quarterly Report for Q1 Ended Nov 30, 2006

Filing Date
Filed January 16, 2007
Period End
November 30, 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 January 16, 2007. Cited figures are marked; the original filing is the authoritative source.

Micron Technology Inc.'s quarterly report for the period ending November 30, 2006, demonstrates a significant increase in revenue and net income compared to the prior year's quarter.

Net sales grew by 12% to $1.53 billiona, driven by strong performance in both the Memory and Imaging segments. The Memory segment saw a substantial surge in NAND Flash sales, largely due to the recent acquisition of Lexar Media, Inc., and increased production from the IM Flash Technologies joint venture. The Imaging segment also continued its growth trajectory.

Despite increased selling, general, and administrative expenses, largely influenced by a settlement charge related to DRAM price-fixing litigation, the company achieved a net income of $115 millionb, or $0.15 per diluted share, a substantial improvement from $63 million, or $0.09 per diluted share, in the same period last year. Financially, Micron's balance sheet shows robust growth in property, plant, and equipment, reflecting continued investment in manufacturing capacity. Cash flow from operations remained strong, providing $429 million, though significant capital expenditures of $1.1 billion were made, primarily for facility upgrades and joint ventures.

The company also resolved a significant portion of its DRAM price-fixing litigation by agreeing to a $91 millionc settlement, which was reflected in the current quarter's results. Investors should note the company's strategic focus on diversifying its product portfolio beyond traditional DRAM, particularly into NAND Flash and image sensors, as well as ongoing investments in joint ventures like IMFT and TECH.

02—Key points

Key Highlights

  1. Net sales increased by 12% year-over-year to $1.53 billion, driven by growth in both Memory and Imaging segments.
  2. Net income more than doubled year-over-year, reaching $115 million ($0.15 per diluted share), up from $63 million ($0.09 per diluted share) in the prior year's quarter.
  3. The acquisition of Lexar Media and the ramp-up of the IM Flash Technologies (IMFT) joint venture significantly boosted NAND Flash memory sales, which grew by 102% sequentially and 224% year-over-year.
  4. Gross margin improved to 29% from 23% in the prior year's quarter, mainly due to better margins in the Memory segment, particularly from DRAM products.
  5. The company settled a significant portion of the DRAM price-fixing litigation with direct purchasers for $91 million, impacting SG&A expenses and revenue in the current quarter.
  6. Capital expenditures were substantial at $1.1 billion, reflecting ongoing investments in manufacturing capacity and joint ventures.
  7. The company reported strong cash flow from operations of $429 million for the quarter.

03—Questions

Frequently Asked Questions

  1. What were the key drivers of Micron's revenue growth in this quarter?

    Micron's revenue growth was primarily driven by a significant increase in NAND Flash memory sales, a result of the Lexar Media acquisition and increased production from the IM Flash Technologies (IMFT) joint venture with Intel. The Imaging segment also contributed positively to the overall revenue increase.

  2. How did the DRAM price-fixing litigation settlement affect the financial results?

    Micron reached a $91 million settlement with direct purchasers of DRAM. This settlement resulted in a $50 million charge to revenue and a $31 million net charge to selling, general and administrative expenses in the first quarter of fiscal year 2007. The total net impact on net income was a reduction of $77 million.

  3. What is the company's outlook regarding its strategic diversification into NAND Flash and Imaging?

    Micron is strategically diversifying its product portfolio beyond traditional DRAM, with a strong focus on NAND Flash and CMOS image sensors. The company expects continued growth in these segments, with NAND Flash sales anticipated to increase further as IMFT ramps production capacity. The Imaging segment is also expected to stabilize at current levels after recent strong growth.

  4. What is the company's capital expenditure plan and how is it being funded?

    Micron projects capital spending to approximate $4 billion for fiscal year 2007. Approximately $1.5 billion of this spending is expected to be funded by capital contributions from joint venture partners. Significant investments are being made in facility upgrades and joint ventures such as IMFT and TECH.

04—Continue

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