8-KEarnings & ResultsFinancial EventsExhibits & Filings

MICRON TECHNOLOGY INC 8-K Report, Financial Results (Apr 2, 2009)

Filed April 2, 2009For Securities:MU

Summary

Micron Technology Inc. (MU) filed an 8-K on April 2, 2009, to report on its financial results for the fiscal quarter ended March 5, 2009, and to disclose significant restructuring activities. The company is undergoing substantial changes due to a severe downturn in the semiconductor memory industry and the global economic climate. These actions include the termination of a NAND Flash memory supply agreement with IM Flash (a joint venture with Intel) and the suspension of NAND Flash production ramp-up in Singapore.

Key Highlights

  • 1Termination of NAND Flash memory supply agreement with IM Flash, reducing NAND Flash production by approximately 35,000 wafers per month.
  • 2Suspension of NAND Flash production tooling and ramp-up at IM Flash's Singapore facility.
  • 3Phase-out of all remaining 200mm wafer manufacturing operations at the Boise, Idaho facility.
  • 4Anticipated reduction of up to 2,000 positions at the Boise facility by the end of fiscal 2009.
  • 5Recorded a net $66 million credit to restructure in the first quarter of fiscal 2009.
  • 6Recorded a $105 million restructure charge in the second quarter of fiscal 2009.
  • 7Expects to incur additional restructure costs of approximately $27 million through fiscal 2009, primarily for severance and employee-related costs.

Frequently Asked Questions

Micron's restructuring efforts were driven by a severe downturn in the semiconductor memory industry and challenging global economic conditions.

The termination of the NAND Flash memory supply agreement with IM Flash significantly reduced Micron's NAND Flash production by about 35,000 200mm wafers per month. Additionally, production ramp-up and tooling in Singapore were suspended.

In Q1 fiscal 2009, Micron recorded a net $66 million credit, which included a $144 million gain from the supply agreement termination offset by other charges. In Q2 fiscal 2009, a $105 million charge was recorded, mainly for equipment write-downs and severance. Additional costs of about $27 million are expected through fiscal 2009.

Micron announced it will phase out 200mm wafer manufacturing at its Boise, Idaho facility, leading to a potential reduction of up to 2,000 positions by the end of fiscal 2009.