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10-QPeriod: Q2 FY2011

MICRON TECHNOLOGY INC Quarterly Report for Q1 Ended Dec 2, 2010

Filed January 11, 2011For Securities:MU

Summary

Micron Technology, Inc. reported net sales of $2,252 million for the quarter ended December 2, 2010, a significant increase from $1,740 million in the same quarter of the previous year. This growth was primarily driven by the integration of Numonyx Holdings B.V., acquired in May 2010, which contributed $573 million in net sales to the Numonyx segment. Despite the revenue increase, net income attributable to Micron decreased to $155 million ($0.15 per diluted share) from $204 million ($0.23 per diluted share) year-over-year. This was influenced by higher cost of goods sold, increased selling, general, and administrative expenses, and a substantial loss of $114 million in other non-operating income/expense. The company's balance sheet shows total assets remaining relatively stable at $14,617 million. Total liabilities decreased slightly to $4,623 million. Significant changes include a decrease in cash and equivalents to $2,411 million from $2,913 million, and an increase in accounts payable and accrued expenses. The company also executed a debt restructure in November 2010, exchanging and repurchasing convertible notes, which resulted in a loss of $111 million related to these transactions. Micron continues to invest heavily in property, plant, and equipment, with capital expenditures of $465 million in the quarter.

Financial Statements
Beta

Key Highlights

  • 1Net sales increased by 29% year-over-year to $2,252 million, driven by the Numonyx acquisition.
  • 2Net income attributable to Micron decreased by 24% year-over-year to $155 million, impacting earnings per diluted share to $0.15 from $0.23.
  • 3The company reported a significant gain of $200 million from a patent cross-license agreement with Samsung in the quarter.
  • 4Cash and equivalents decreased by $502 million sequentially to $2,411 million.
  • 5Micron completed a debt restructure involving convertible notes, resulting in a $111 million loss related to these transactions.
  • 6Capital expenditures for property, plant, and equipment totaled $465 million for the quarter, indicating continued investment in infrastructure.
  • 7The company faces ongoing legal proceedings, including antitrust and patent litigation, with potential material impacts on financial condition.

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