10-QPeriod: Q3 FY2015

MICRON TECHNOLOGY INC Quarterly Report for Q2 Ended Mar 5, 2015

Filed April 10, 2015For Securities:MU

Summary

Micron Technology, Inc. (MU) reported its financial results for the fiscal second quarter ended March 4, 2015. The company demonstrated resilience with net sales of $4.17 billion, a slight increase from the same period last year, indicating stable demand for its memory products. Net income attributable to Micron shareholders rose to $934 million, or $0.78 per diluted share, up from $731 million, or $0.61 per diluted share, in the prior year's second quarter. This improvement in profitability reflects effective cost management and a favorable product mix. The company's balance sheet remains robust, with total assets growing to $23.82 billion and shareholders' equity increasing to $13.24 billion, underscoring financial stability and capacity for future investments. Management's focus on strategic product development and operational efficiency continues to drive performance in a competitive market.

Financial Highlights

51 data points
Beta

Revenue

$3.85B

31.2% Gross Margin

Net Income

$491.00M

12.7% Net Margin

EPS (Diluted)

$0.42

Total Assets

$25.14B

Cash & Equivalents

$3.69B

Free Cash Flow

$601.00M

Financial Statements
Beta
Revenue$3.85B
Cost of Revenue$2.65B
Gross Profit$1.20B
R&D Expenses$406.00M
SG&A Expenses$169.00M
Operating Income$631.00M
Interest Expense$97.00M
Net Income$491.00M
EPS (Basic)$0.46
EPS (Diluted)$0.42
Shares Outstanding (Basic)1.07B
Shares Outstanding (Diluted)1.17B

Key Highlights

  • 1Net sales for the quarter were $4.17 billion, slightly up from $4.11 billion in the prior year's second quarter.
  • 2Net income attributable to Micron shareholders increased to $934 million from $731 million in the comparable prior year period.
  • 3Diluted earnings per share (EPS) rose to $0.78 from $0.61 year-over-year.
  • 4Gross margin remained strong at 34%, indicating effective cost management.
  • 5The company's balance sheet showed growth, with total assets reaching $23.82 billion and shareholders' equity at $13.24 billion.
  • 6The company executed a new supply agreement with Inotera, set to take effect in 2016, which is expected to alter the cost-sharing dynamics for DRAM products.
  • 7Micron continued its share repurchase program, buying back 7 million shares for $192 million during the quarter.

Frequently Asked Questions

Micron's net sales for the second quarter of fiscal year 2015 were $4.17 billion, a modest increase from $4.11 billion in the second quarter of fiscal year 2014. Net income attributable to Micron shareholders saw a significant improvement, rising to $934 million from $731 million in the same period last year. Diluted earnings per share increased to $0.78 from $0.61.

Micron's balance sheet indicates strong financial health. Total assets grew to $23.82 billion as of March 5, 2015, up from $22.50 billion at the end of the previous fiscal year. Shareholders' equity also increased significantly to $13.24 billion, providing a solid foundation for future operations and investments. The company maintained a healthy liquidity position with $3.55 billion in cash and equivalents.

Micron operates four reportable segments: Compute and Networking (CNBU), Storage (SBU), Mobile (MBU), and Embedded (EBU). For the second quarter of fiscal year 2015, CNBU and SBU showed stable to slightly improved sales compared to the prior year. MBU experienced a slight decline in sales, while EBU showed strong year-over-year growth, reflecting diversified demand across various end markets.

The filing highlights the execution of a new '2016 Supply Agreement' with Inotera, which will replace the current agreement in 2016 and is expected to change the margin-sharing formula for DRAM products. Additionally, several patent infringement lawsuits are ongoing, and the company is involved in legal proceedings related to the reorganization of MMJ Companies. While these present potential risks, their ultimate impact is uncertain.