8-KEarnings & ResultsFinancial EventsExhibits & Filings

MICRON TECHNOLOGY INC 8-K Report, Financial Results (Jun 25, 2009)

Filed June 25, 2009For Securities:MU

Summary

Micron Technology Inc. (MU) filed an 8-K on June 25, 2009, to announce its financial results for the fiscal quarter ended June 4, 2009. The filing also details significant restructuring activities undertaken in response to the severe downturn in the semiconductor memory industry and global economic conditions. These restructuring efforts, primarily impacting the Memory segment, involve a reduction in NAND Flash production and the phasing out of 200mm wafer manufacturing operations at its Boise, Idaho facility, leading to substantial employment reductions. The company has recorded a net credit to restructuring in the first quarter of fiscal 2009, largely due to a gain from the termination of a NAND Flash supply agreement with Intel. However, this was offset by charges related to asset write-downs and severance costs. Subsequent quarters have also seen further charges associated with these restructuring initiatives, with additional costs expected to be incurred through fiscal 2009. Investors should note that these are forward-looking statements and actual results may differ materially.

Key Highlights

  • 1Micron announced financial results for the fiscal quarter ended June 4, 2009.
  • 2The company is undertaking significant restructuring due to industry downturn and economic conditions.
  • 3IM Flash joint venture terminated a NAND Flash memory supply agreement, reducing Micron's production by approximately 35,000 wafers/month.
  • 4Tooling and ramp of NAND Flash production at IM Flash's Singapore facility will be suspended.
  • 5Micron will phase out all remaining 200mm wafer manufacturing operations at its Boise, Idaho facility, impacting up to 2,000 positions.
  • 6A net $66 million credit was recorded in Q1 fiscal 2009 for restructuring, including a $144 million gain from the terminated NAND agreement, offset by asset write-downs and severance.
  • 7Additional restructure charges of $105 million (Q2 fiscal 2009) and $19 million (Q3 fiscal 2009) were recorded, primarily for asset write-downs and severance.

Frequently Asked Questions

Micron is undertaking restructuring due to a severe downturn in the semiconductor memory industry and challenging global economic conditions.

The termination led to a significant reduction in Micron's NAND Flash production by approximately 35,000 200mm wafers per month and resulted in a $144 million gain in the first quarter of fiscal 2009, which was part of a net restructuring credit.

This action will lead to the elimination of all remaining 200mm wafer manufacturing operations at the Boise, Idaho facility and is expected to impact employment by as many as 2,000 positions by the end of fiscal 2009. It also involved charges for reducing the carrying value of equipment and for severance.

Yes, excluding any gains or losses from equipment sales, the Company expects to incur additional restructuring costs through fiscal 2009 of approximately $7 million, primarily related to severance and other employee costs.