Summary
Micron Technology, Inc. reported a net loss of $275 million for the first quarter ended November 29, 2012, a deterioration from the $187 million net loss in the same period of the prior year. Net sales declined to $1.834 billion from $2.090 billion year-over-year. This decline was primarily driven by significant decreases in average selling prices for both NAND Flash and DRAM products, impacted by increased supply and softer demand. While sales volumes saw increases, they were not enough to offset the pricing pressures. The company is actively pursuing strategic initiatives, notably the pending acquisition of Elpida Memory, Inc. and Rexchip, which are expected to close in the first half of calendar 2013, and could significantly alter Micron's market position and financial leverage.
Financial Highlights
53 data points| Revenue | $1.83B |
| Cost of Revenue | $1.62B |
| Gross Profit | $217.00M |
| R&D Expenses | $224.00M |
| SG&A Expenses | $119.00M |
| Operating Income | -$97.00M |
| Interest Expense | $57.00M |
| Net Income | -$275.00M |
| EPS (Basic) | $-0.27 |
| EPS (Diluted) | $-0.27 |
| Shares Outstanding (Basic) | 1.01B |
| Shares Outstanding (Diluted) | 1.01B |
Key Highlights
- 1Net loss widened to $275 million from $187 million year-over-year.
- 2Net sales decreased by 12% to $1.834 billion, driven by declining average selling prices for key products.
- 3Gross margin compressed to 12% from 15% year-over-year due to pricing pressures.
- 4Significant R&D and SG&A expenses continue, with R&D at $224 million and SG&A at $119 million.
- 5The company is in the process of acquiring Elpida Memory, Inc. and Rexchip, a transaction anticipated to close in the first half of 2013.
- 6Cash and equivalents stood at $2.102 billion, but the company faces ongoing capital expenditure needs and potential liabilities from acquisitions.