8-KEarnings & ResultsFinancial EventsExhibits & Filings

MICRON TECHNOLOGY INC 8-K Report, Financial Results (Dec 20, 2007)

Filed December 20, 2007For Securities:MU

Summary

Micron Technology, Inc. (MU) filed a Form 8-K on December 20, 2007, primarily announcing its financial results for the quarter ended November 29, 2007. While the full details of the financial results are in an attached press release (Exhibit 99.1), the 8-K also disclosed significant restructuring activities undertaken to enhance cost efficiencies and revenue growth. These restructuring initiatives involve workforce reductions, consolidation of operations to be closer to global customers, evaluation of outsourcing opportunities, and a general reduction in overhead costs. The company has already incurred $13 million in restructure charges in the first quarter of fiscal 2008 and $19 million in the fourth quarter of fiscal 2007, largely attributed to employee severance. Further charges are anticipated through fiscal year 2008 as these changes are implemented, though the total aggregate amount remains uncertain.

Key Highlights

  • 1Micron Technology announced its financial results for the quarter ended November 29, 2007, via an attached press release.
  • 2The company is implementing strategic initiatives to improve cost efficiencies and drive revenue growth.
  • 3These initiatives include workforce reductions in specific areas.
  • 4Operations are being realigned to be closer to global customers.
  • 5Micron is evaluating the potential for partnerships and outsourcing to enhance efficiency.
  • 6Overhead costs are being reduced to meet industry benchmarks.
  • 7Restructure charges totaling $32 million ($19 million in Q4 FY2007 and $13 million in Q1 FY2008) have been recorded, primarily for employee severance.

Frequently Asked Questions

The restructure charges were primarily related to employee severance and related costs resulting from workforce reductions and the broader restructuring initiatives aimed at improving cost efficiencies and operational alignment.

Yes, Micron anticipates incurring some level of restructure charges through the end of fiscal 2008 as it continues to implement these initiatives. However, the company is currently unable to estimate the aggregate amount of these future charges.

The detailed financial results for the quarter ended November 29, 2007, are provided in the press release attached as Exhibit 99.1 to this Form 8-K filing.

Micron is making several operational changes, including workforce reductions, relocating certain operations closer to customers, evaluating potential partnerships or outsourcing for functions, and reducing overall overhead costs.