Summary
Micron Technology Inc. reported a net loss of $286 million for the second quarter of fiscal year 2013, a slight increase from the $282 million loss in the same period of the prior year. While net sales saw a modest increase year-over-year, gross margins improved significantly, reflecting cost reduction efforts. However, substantial losses in "other operating (income) expense, net" and "other non-operating income (expense), net" negatively impacted the bottom line. These included a $62 million impairment loss related to the sale of its Italian subsidiary and significant losses on currency hedges associated with the pending Elpida acquisition. The company provided an update on its proposed acquisition of Elpida Memory, Inc., noting that creditor approval had been obtained and the Japan Court had approved the reorganization plan, though appeals were filed by certain creditors. The transaction remains subject to further conditions, including U.S. court recognition. Management continues to believe the acquisition will be consummated. The company also continues to manage its liquidity, with net cash provided by operating activities at $470 million for the first six months of fiscal year 2013, supported by robust cash and investments.
Financial Highlights
53 data points| Revenue | $2.08B |
| Cost of Revenue | $1.71B |
| Gross Profit | $366.00M |
| R&D Expenses | $214.00M |
| SG&A Expenses | $123.00M |
| Operating Income | -$23.00M |
| Interest Expense | $56.00M |
| Net Income | -$286.00M |
| EPS (Basic) | $-0.28 |
| EPS (Diluted) | $-0.28 |
| Shares Outstanding (Basic) | 1.02B |
| Shares Outstanding (Diluted) | 1.02B |
Key Highlights
- 1Net loss of $286 million for the quarter, compared to a $282 million net loss in the prior year's second quarter.
- 2Net sales increased to $2.078 billion from $2.009 billion year-over-year, driven by improvements in the DRAM Solutions Group (DSG).
- 3Gross margin improved significantly to 18% from 10% year-over-year due to cost reductions.
- 4The company incurred a $62 million impairment loss related to the planned sale of its Italian subsidiary (MIT).
- 5Substantial losses on currency hedges ($114 million in the quarter) were recorded due to the pending Elpida acquisition.
- 6The acquisition of Elpida Memory, Inc. is progressing, with creditor approval and Japanese court approval, though facing appeals.
- 7Operating cash flow remained strong at $470 million for the first six months of the fiscal year.