Summary
Micron Technology, Inc. announced a significant restructuring of its memory operations on October 9, 2008, in response to a challenging global economic environment. The company plans to cease NAND Flash memory production at its Boise, Idaho fabrication facility, a move undertaken in conjunction with its joint venture partner, Intel Corporation. This operational shift is part of a broader initiative to reduce Micron's global workforce by approximately 15% over the next two years. Investors should note that this restructuring is expected to incur cash costs of around $60 million, but is projected to yield an annual benefit to cash operating margin of approximately $175 million. The company anticipates these restructuring charges will continue through at least the remainder of fiscal year 2009, though the total aggregate amount remains unestimable at this time. While the company believes its forward-looking statements are reasonable, actual results may differ materially, and investors are encouraged to review Micron's SEC filings for a comprehensive understanding of potential risks and factors.
Key Highlights
- 1Micron Technology is undertaking a restructuring of its memory operations due to challenging global economic conditions.
- 2NAND Flash memory production will be shut down at the Boise, Idaho 200mm wafer fabrication facility.
- 3This production change is a joint decision with NAND Flash partner, Intel Corporation.
- 4The company plans a global workforce reduction of approximately 15% over the next two years.
- 5Expected cash costs for the restructuring are approximately $60 million.
- 6Projected annual benefit to cash operating margin is approximately $175 million.
- 7Restructuring charges are anticipated through at least the remainder of fiscal year 2009, with an unestimated aggregate amount.