The company's net sales declined 11 percent in the second quarter of fiscal 2008 compared to the immediately preceding quarter primarily due to lower selling prices partially offset by increased production of memory products. Average selling prices for the company's DRAM and NAND Flash memory products decreased 15 percent and 30 percent, respectively, in the second quarter compared to the first quarter. Comparing the second quarter to the same quarter of the previous fiscal year, average selling prices for the company's DRAM and NAND Flash memory products decreased approximately 60 percent and 70 percent, respectively.
The company achieved second quarter reductions in cost of goods sold per megabit of approximately 15 percent and 25 percent for DRAM and NAND Flash memory products, respectively, compared to the first quarter of fiscal 2008. These reductions resulted from continuing advancements in our industry-leading process technology and increased output from our 300mm operations.
The company had capital expenditures of $693 million during the second quarter bringing the expenditures for the first six months to $1.6 billion. The company estimates capital expenditures aggregating between $2.5 billion and $3 billion for the 2008 fiscal year. In the third quarter of fiscal 2008, TECH Semiconductor, a consolidated joint venture, entered into a $600 million credit facility to refinance its existing debt of $240 million and to finance future capital expenditures.
The company will host a conference call today at 2:30 p.m. MDT to discuss its financial results. The call, audio and slides will be available online at www.micron.com. A webcast replay will be available on the company's Web site until April 2, 2009. A taped audio replay of the conference call will also be available at 706-645-9291 (conference number: 39996231) beginning at 5:30 p.m. MDT today and continuing until 5:30 p.m. MDT on April 9, 2008.
Micron Technology, Inc., is one of the world's leading providers of advanced semiconductor solutions. Through its worldwide operations, Micron manufactures and markets DRAMs, NAND flash memory, CMOS image sensors, other semiconductor components, and memory modules for use in leading-edge computing, consumer, networking and mobile products. Micron's common stock is traded on the New York Stock Exchange (NYSE) under the MU symbol. To learn more about Micron visit www.micron.com.
MICRON TECHNOLOGY, INC.
CONSOLIDATED FINANCIAL SUMMARY
(Amounts in millions except per share data)
2nd 1st 2nd Six Months Ended
Qtr. Qtr. Qtr.
Feb. Nov. Mar. 1, Feb. 28, Mar. 1,
28, 29,
2008 2007 2007 2008 2007
------- ------- ------- -------- -------
Net sales $1,359 $1,535 $1,427 $ 2,894 $2,957
Cost of goods sold (1) 1,402 1,530 1,070 2,932 2,158
------- ------- ------- -------- -------
Gross margin (43) 5 357 (38) 799
Selling, general and
administrative 120 112 153 232 333
Research and development 180 163 243 343 426
Goodwill impairment (2) 463 -- -- 463 --
Restructure (3) 8 13 -- 21 --
Other operating (income)
expense (4) (42) (23) (5) (65) (36)
------- ------- ------- -------- -------
Operating income (loss) (772) (260) (34) (1,032) 76
Interest income (expense),
net 3 9 31 12 71
Other non-operating income
(expense) (6) (1) 5 (7) 8
Income tax benefit
(provision) (5) 4 (7) (6) (3) (15)
Noncontrolling interests in
net income (6) (3) (48) (9) (77)
------- ------- ------- -------- -------
Net income (loss) $ (777) $ (262) $ (52) $(1,039) $ 63
======= ======= ======= ======== =======
Earnings (loss) per share:
Basic $(1.01) $(0.34) $(0.07) $ (1.35) $ 0.08
Diluted (1.01) (0.34) (0.07) (1.35) 0.08
Number of shares used in per
share calculations:
Basic 772.4 771.9 768.7 772.2 767.9
Diluted 772.4 771.9 768.7 772.2 776.3
Reconciliation of GAAP to Non-GAAP Financial Measures (6)
Net income (loss):
On a GAAP basis $ (777) $ (262) $ (52) $(1,039) $ 63
Goodwill impairment 463 -- -- 463 --
------- ------- ------- -------- -------
On a non-GAAP basis $ (314) $ (262) $ (52) $ (576) $ 63
======= ======= ======= ======== =======
Diluted earnings (loss) per
share:
On a GAAP basis $(1.01) $(0.34) $(0.07) $ (1.35) $ 0.08
Goodwill impairment 0.60 -- -- 0.60 --
------- ------- ------- -------- -------
On a non-GAAP basis $(0.41) $(0.34) $(0.07) $ (0.75) $ 0.08
======= ======= ======= ======== =======
