8-KEarnings & ResultsFinancial EventsExhibits & Filings

MICRON TECHNOLOGY INC 8-K Report, Financial Results (Jun 30, 2016)

Filed June 30, 2016For Securities:MU

Summary

Micron Technology Inc. (MU) filed an 8-K on June 30, 2016, announcing its financial results for the third quarter of fiscal year 2016 and a new restructure plan. The company is implementing a cost savings program expected to yield approximately $80 million in savings per quarter starting in fiscal year 2017. This initiative involves a more focused project strategy, a halt on new hiring, workforce reductions in specific areas, and other spending cuts. In connection with this plan, Micron anticipates incurring charges of roughly $70 million, with the majority being cash expenditures. Most of these charges are expected in the fourth quarter of fiscal year 2016, with the remainder recognized in early fiscal year 2017. Investors should note that while these are management's current expectations, actual results may differ, and forward-looking statements carry inherent risks.

Key Highlights

  • 1Micron announced Q3 FY16 financial results on June 30, 2016.
  • 2A new restructure plan was unveiled in response to the current business environment.
  • 3The company expects to achieve $80 million in cost savings per quarter starting in fiscal year 2017.
  • 4Savings will be driven by project focus, headcount reductions, and spending cuts.
  • 5An estimated $70 million in charges will be incurred due to the restructure plan, largely in Q4 FY16.
  • 6The majority of restructure charges are expected to be cash expenditures.
  • 7Forward-looking statements indicate potential for deviation from actual results.

Frequently Asked Questions

The restructure plan is a proactive measure by Micron to adapt to the current business environment and to accelerate its focus on key company priorities.

Micron anticipates saving approximately $80 million per quarter in fiscal year 2017 as a result of this cost savings program.

Micron expects to incur charges of approximately $70 million, substantially all in cash expenditures. The majority of these charges are projected for the fourth quarter of fiscal year 2016, with the remainder in early fiscal year 2017.

The savings will be achieved through a combination of factors, including a more focused approach to projects and programs, the permanent closure of open headcount requisitions, workforce reductions in certain business areas, and other non-headcount related spending reductions.