01—Abstract
Summary
Summary of the 10-Q filed April 10, 2015. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb, 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.
02—Key points
Key Highlights
- Net sales for the quarter were $4.17 billion, slightly up from $4.11 billion in the prior year's second quarter.
- Net income attributable to Micron shareholders increased to $934 million from $731 million in the comparable prior year period.
- Diluted earnings per share (EPS) rose to $0.78 from $0.61 year-over-year.
- Gross margin remained strong at 34%, indicating effective cost management.
- The company's balance sheet showed growth, with total assets reaching $23.82 billion and shareholders' equity at $13.24 billion.
- The 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.
- Micron continued its share repurchase program, buying back 7 million shares for $192 million during the quarter.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2015, Micron Technology Inc kept $0.13.
- Revenue$3.85B100.0%
- Cost of revenue−$2.65B68.8%
- Gross profit$1.20B31.2%
- Operating costs−$571.0M14.8%
- Operating income$631.0M16.4%
- Interest, other & tax−$140.0M3.6%
- Net income$491.0M12.7%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2015filed April 10, 2015Financial Statements
Q3 FY2015 against Q3 FY2014
| Line item | Q3 FY2015Q3 FY2014 | Change |
|---|---|---|
| Revenue | $3.85B$3.98B | −3.2% |
| Cost of Revenue | $2.65B$2.61B | +1.4% |
| Gross Profit | $1.20B$1.37B | −12.1% |
| R&D Expenses | $406.00M$349.00M | +16.3% |
| SG&A Expenses | $169.00M$174.00M | −2.9% |
| Operating Income | $631.00M$839.00M | −24.8% |
| Interest Expense | $97.00M$80.00M | +21.3% |
| Net Income | $491.00M$806.00M | −39.1% |
| EPS (Basic) | $0.46$0.76 | −39.5% |
| EPS (Diluted) | $0.42$0.68 | −38.2% |
| Shares Outstanding (Basic) | 1.07B1.07B | +0.6% |
| Shares Outstanding (Diluted) | 1.17B1.19B | −1.7% |
05—Questions
Frequently Asked Questions
How did Micron's revenue and profitability compare to the prior year's second quarter?
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.
What is the financial health of Micron based on its balance sheet?
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.
What are the key operational segments for Micron, and how did they perform?
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.
What significant agreements or legal matters were mentioned in the filing that could impact Micron?
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.
06—Continue