8-KEarnings & ResultsFinancial EventsExhibits & Filings

MICRON TECHNOLOGY INC 8-K Report, Financial Results (Sep 29, 2009)

Filed September 29, 2009For Securities:MU

Summary

Micron Technology Inc. (MU) filed an 8-K on September 29, 2009, to announce its financial results for the fourth quarter and full fiscal year ended September 3, 2009. The filing also detailed significant restructuring activities undertaken by the company due to the severe downturn in the semiconductor memory industry and global economic conditions. These actions included adjustments to its joint venture with Intel (IM Flash) for NAND Flash memory and the phasing out of 200mm wafer manufacturing operations in Boise, Idaho. Investors should note the financial impact of these restructuring efforts. The company recorded charges of $12 million in the fourth quarter and $70 million for the full fiscal year 2009 related to employee severance, relocation, retention bonuses, and the write-down of equipment. While these charges reflect the challenging operating environment, they are also indicative of Micron's strategic adjustments to align its operations with market realities and focus on future growth areas.

Key Highlights

  • 1Micron announced its Q4 and full fiscal year 2009 financial results.
  • 2The company is undertaking significant restructuring due to industry downturn and economic conditions.
  • 3Restructuring includes changes to the IM Flash joint venture agreement with Intel regarding NAND Flash supply.
  • 4Micron is phasing out all remaining 200mm wafer manufacturing operations at its Boise, Idaho facility.
  • 5Q4 2009 restructuring charges totaled $12 million, primarily for severance and equipment write-downs.
  • 6Full fiscal year 2009 restructuring charges amounted to $70 million.

Frequently Asked Questions

Micron is restructuring primarily in response to a severe downturn in the semiconductor memory industry and challenging global economic conditions. These factors have necessitated adjustments to the company's operational footprint and strategic partnerships.

The company has terminated its agreement with IM Flash, a joint venture with Intel, for the supply of NAND Flash memory from Micron's Boise facility. Additionally, the tooling and ramping of NAND Flash production at IM Flash's Singapore facility have been suspended.

In the fourth quarter of 2009, Micron recorded $12 million in restructuring charges. For the full fiscal year 2009, these charges totaled $70 million. These costs are primarily associated with employee severance, relocation and retention bonuses, and the write-down of certain 200mm wafer manufacturing equipment.

Phasing out the remaining 200mm wafer manufacturing operations at the Boise, Idaho facility signifies Micron's strategic shift away from older manufacturing technologies, likely to focus resources on more advanced and cost-effective production processes for current and future memory products.