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Micron Technology, Inc. Reports Results for the Fourth Quarter and Full Year of Fiscal 2024
Source: Nasdaq GlobeNewswire / 25 Sep 2024 16:07:05 America/New_York
BOISE, Idaho, Sept. 25, 2024 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its fourth quarter and full year of fiscal 2024, which ended August 29, 2024.
Fiscal Q4 2024 highlights
- Revenue of $7.75 billion versus $6.81 billion for the prior quarter and $4.01 billion for the same period last year
- GAAP net income of $887 million, or $0.79 per diluted share
- Non-GAAP net income of $1.34 billion, or $1.18 per diluted share
- Operating cash flow of $3.41 billion versus $2.48 billion for the prior quarter and $249 million for the same period last year
Fiscal 2024 highlights
- Revenue of $25.11 billion versus $15.54 billion for the prior year
- GAAP net income of $778 million, or $0.70 per diluted share
- Non-GAAP net income of $1.47 billion, or $1.30 per diluted share
- Operating cash flow of $8.51 billion versus $1.56 billion for the prior year
“Micron delivered 93% year-over-year revenue growth in fiscal Q4, as robust AI demand drove a strong ramp of our data center DRAM products and our industry-leading high bandwidth memory. Our NAND revenue record was led by data center SSD sales, which exceeded $1 billion in quarterly revenue for the first time,” said Micron Technology President and CEO Sanjay Mehrotra. “We are entering fiscal 2025 with the best competitive positioning in Micron's history. We forecast record revenue in fiscal Q1 and a substantial revenue record with significantly improved profitability in fiscal 2025.”
Quarterly Financial Results (in millions, except per share amounts) GAAP(1) Non-GAAP(2) FQ4-24 FQ3-24 FQ4-23 FQ4-24 FQ3-24 FQ4-23 Revenue $ 7,750 $ 6,811 $ 4,010 $ 7,750 $ 6,811 $ 4,010 Gross margin 2,737 1,832 (435 ) 2,826 1,917 (366 ) percent of revenue 35.3 % 26.9 % (10.8 %) 36.5 % 28.1 % (9.1 %) Operating expenses 1,215 1,113 1,037 1,081 976 842 Operating income (loss) 1,522 719 (1,472 ) 1,745 941 (1,208 ) percent of revenue 19.6 % 10.6 % (36.7 %) 22.5 % 13.8 % (30.1 %) Net income (loss) 887 332 (1,430 ) 1,342 702 (1,177 ) Diluted earnings (loss) per share 0.79 0.30 (1.31 ) 1.18 0.62 (1.07 ) Annual Financial Results (in millions, except per share amounts) GAAP(1) Non-GAAP(2) FY-24 FY-23 FY-24 FY-23 Revenue $ 25,111 $ 15,540 $ 25,111 $ 15,540 Gross margin 5,613 (1,416 ) 5,943 (1,196 ) percent of revenue 22.4 % (9.1 %) 23.7 % (7.7 %) Operating expenses 4,309 4,329 4,008 3,623 Operating income (loss) 1,304 (5,745 ) 1,935 (4,819 ) percent of revenue 5.2 % (37.0 %) 7.7 % (31.0 %) Net income (loss) 778 (5,833 ) 1,472 (4,862 ) Diluted earnings (loss) per share 0.70 (5.34 ) 1.30 (4.45 ) Investments in capital expenditures, net(2) were $3.08 billion for the fourth quarter of 2024 and $8.12 billion for the full year of 2024, which resulted in adjusted free cash flows(2) of $323 million for the fourth quarter of 2024 and $386 million for the full year of 2024. Micron ended the year with cash, marketable investments, and restricted cash of $9.16 billion. On September 25, 2024, Micron’s Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on October 23, 2024, to shareholders of record as of the close of business on October 7, 2024.
Business Outlook
The following table presents Micron’s guidance for the first quarter of 2025:
FQ1-25 GAAP(1) Outlook Non-GAAP(2) Outlook Revenue $8.70 billion ± $200 million $8.70 billion ± $200 million Gross margin 38.5% ± 1.0% 39.5% ± 1.0% Operating expenses $1.211 billion ± $15 million $1.085 billion ± $15 million Diluted earnings per share $1.54 ± $0.08 $1.74 ± $0.08 Further information regarding Micron’s business outlook is included in the prepared remarks and slides, which have been posted at investors.micron.com.
Investor Webcast
Micron will host a conference call on Wednesday, September 25, 2024 at 2:30 p.m. Mountain Time to discuss its fourth quarter financial results and provide forward-looking guidance for its first quarter. A live webcast of the call will be available online at investors.micron.com. A webcast replay will be available for one year after the call. For Investor Relations and other company updates, follow us on X @MicronTech.
About Micron Technology, Inc.
We are an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND, and NOR memory and storage products through our Micron® and Crucial® brands. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence (AI) and compute-intensive applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.
© 2024 Micron Technology, Inc. All rights reserved. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners.
Forward-Looking Statements
This press release contains forward-looking statements regarding our industry, our strategic position, and our financial and operating results, including our guidance for the first quarter and full year fiscal 2025. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents we file with the Securities and Exchange Commission, including our most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at investors.micron.com/risk-factor. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements to conform these statements to actual results.
(1) GAAP represents U.S. Generally Accepted Accounting Principles. (2) Non-GAAP represents GAAP excluding the impact of certain activities, which management excludes in analyzing our operating results and understanding trends in our earnings, adjusted free cash flow, and business outlook. Further information regarding Micron’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release. MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share amounts)
(Unaudited)4th Qtr. 3rd Qtr. 4th Qtr. Year Ended August 29,
2024May 30,
2024August 31,
2023August 29,
2024August 31,
2023Revenue $ 7,750 $ 6,811 $ 4,010 $ 25,111 $ 15,540 Cost of goods sold 5,013 4,979 4,445 19,498 16,956 Gross margin 2,737 1,832 (435 ) 5,613 (1,416 ) Research and development 903 850 719 3,430 3,114 Selling, general, and administrative 295 291 219 1,129 920 Restructure and asset impairments 1 — 4 1 171 Other operating (income) expense, net 16 (28 ) 95 (251 ) 124 Operating income (loss) 1,522 719 (1,472 ) 1,304 (5,745 ) Interest income 131 136 134 529 468 Interest expense (136 ) (150 ) (129 ) (562 ) (388 ) Other non-operating income (expense), net (7 ) 10 9 (31 ) 7 1,510 715 (1,458 ) 1,240 (5,658 ) Income tax (provision) benefit (623 ) (377 ) 24 (451 ) (177 ) Equity in net income (loss) of equity method investees — (6 ) 4 (11 ) 2 Net income (loss) $ 887 $ 332 $ (1,430 ) $ 778 $ (5,833 ) Earnings (loss) per share Basic $ 0.80 $ 0.30 $ (1.31 ) $ 0.70 $ (5.34 ) Diluted 0.79 0.30 (1.31 ) 0.70 (5.34 ) Number of shares used in per share calculations Basic 1,108 1,107 1,095 1,105 1,093 Diluted 1,125 1,123 1,095 1,118 1,093 MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)As of August 29,
2024May 30,
2024August 31,
2023Assets Cash and equivalents $ 7,041 $ 7,594 $ 8,577 Short-term investments 1,065 785 1,017 Receivables 6,615 5,131 2,443 Inventories 8,875 8,512 8,387 Other current assets 776 1,297 820 Total current assets 24,372 23,319 21,244 Long-term marketable investments 1,046 775 844 Property, plant, and equipment 39,749 37,926 37,928 Operating lease right-of-use assets 645 660 666 Intangible assets 416 413 404 Deferred tax assets 520 597 756 Goodwill 1,150 1,150 1,150 Other noncurrent assets 1,518 1,415 1,262 Total assets $ 69,416 $ 66,255 $ 64,254 Liabilities and equity Accounts payable and accrued expenses $ 7,299 $ 5,145 $ 3,958 Current debt 431 398 278 Other current liabilities 1,518 1,297 529 Total current liabilities 9,248 6,840 4,765 Long-term debt 12,966 12,860 13,052 Noncurrent operating lease liabilities 610 609 603 Noncurrent unearned government incentives 550 672 727 Other noncurrent liabilities 911 1,049 987 Total liabilities 24,285 22,030 20,134 Commitments and contingencies Shareholders’ equity Common stock 125 125 124 Additional capital 12,115 11,794 11,036 Retained earnings 40,877 40,169 40,824 Treasury stock (7,852 ) (7,552 ) (7,552 ) Accumulated other comprehensive income (loss) (134 ) (311 ) (312 ) Total equity 45,131 44,225 44,120 Total liabilities and equity $ 69,416 $ 66,255 $ 64,254 MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)For the year ended August 29,
2024August 31,
2023Cash flows from operating activities Net income (loss) $ 778 $ (5,833 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation expense and amortization of intangible assets 7,780 7,756 Stock-based compensation 833 596 Provision to write down inventories to net realizable value — 1,831 Goodwill impairment — 101 Change in operating assets and liabilities: Receivables (3,581 ) 2,763 Inventories (488 ) (3,555 ) Accounts payable and accrued expenses 1,915 (1,302 ) Other current liabilities 989 (817 ) Other 281 19 Net cash provided by operating activities 8,507 1,559 Cash flows from investing activities Expenditures for property, plant, and equipment (8,386 ) (7,676 ) Purchases of available-for-sale securities (1,999 ) (723 ) Proceeds from maturities and sales of available-for-sale securities 1,794 1,591 Proceeds from government incentives 315 710 Other (33 ) (93 ) Net cash provided by (used for) investing activities (8,309 ) (6,191 ) Cash flows from financing activities Repayments of debt (1,897 ) (761 ) Payments of dividends to shareholders (513 ) (504 ) Repurchases of common stock - repurchase program (300 ) (425 ) Payments on equipment purchase contracts (149 ) (138 ) Proceeds from issuance of debt 999 6,716 Other 18 95 Net cash provided by (used for) financing activities (1,842 ) 4,983 Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash 40 (34 ) Net increase (decrease) in cash, cash equivalents, and restricted cash (1,604 ) 317 Cash, cash equivalents, and restricted cash at beginning of period 8,656 8,339 Cash, cash equivalents, and restricted cash at end of period $ 7,052 $ 8,656 MICRON TECHNOLOGY, INC.
NOTES
(Unaudited)Inventories
In 2023, we recorded charges of $1.83 billion to cost of goods sold to write down the carrying value of work in process and finished goods inventories to their estimated net realizable values (“NRV”). The impact of inventory NRV write-downs for each period reflects (1) inventory write-downs in that period, offset by (2) lower costs in that period on the sale of inventory written down in prior periods. The impacts of inventory NRV write-downs are summarized below:4th Qtr. 3rd Qtr. 4th Qtr. Year Ended August 29,
2024May 30,
2024August 31,
2023August 29,
2024August 31,
2023Provision to write down inventory to NRV $ — $ — $ — $ — $ (1,831 ) Lower costs from sale of inventory written down in prior periods — — 563 987 844 $ — $ — $ 563 $ 987 $ (987 ) MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In millions, except per share amounts)4th Qtr. 3rd Qtr. 4th Qtr. Year Ended August 29,
2024May 30,
2024August 31,
2023August 29,
2024August 31,
2023GAAP gross margin $ 2,737 $ 1,832 $ (435 ) $ 5,613 $ (1,416 ) Stock-based compensation 85 80 64 312 201 Other 4 5 5 18 19 Non-GAAP gross margin $ 2,826 $ 1,917 $ (366 ) $ 5,943 $ (1,196 ) GAAP operating expenses $ 1,215 $ 1,113 $ 1,037 $ 4,309 $ 4,329 Stock-based compensation (128 ) (137 ) (87 ) (509 ) (363 ) Restructure and asset impairments (1 ) — (4 ) (1 ) (171 ) Patent cross-license agreement gain — — — 200 — Goodwill impairment — — (101 ) — (101 ) Litigation settlement — — — — (68 ) Other (5 ) — (3 ) 9 (3 ) Non-GAAP operating expenses $ 1,081 $ 976 $ 842 $ 4,008 $ 3,623 GAAP operating income (loss) $ 1,522 $ 719 $ (1,472 ) $ 1,304 $ (5,745 ) Stock-based compensation 213 217 151 821 564 Restructure and asset impairments 1 — 4 1 171 Patent cross-license agreement gain — — — (200 ) — Goodwill impairment — — 101 — 101 Litigation settlement — — — — 68 Other 9 5 8 9 22 Non-GAAP operating income (loss) $ 1,745 $ 941 $ (1,208 ) $ 1,935 $ (4,819 ) GAAP net income (loss) $ 887 $ 332 $ (1,430 ) $ 778 $ (5,833 ) Stock-based compensation 213 217 151 821 564 Restructure and asset impairments 1 — 4 1 171 Patent cross-license agreement gain — — — (200 ) — Goodwill impairment — — 101 — 101 Litigation settlement — — — — 68 Other 5 3 7 — 32 Estimated tax effects of above and other tax adjustments 236 150 (10 ) 72 35 Non-GAAP net income (loss) $ 1,342 $ 702 $ (1,177 ) $ 1,472 $ (4,862 ) GAAP weighted-average common shares outstanding - Diluted 1,125 1,123 1,095 1,118 1,093 Adjustment for stock-based compensation 12 13 — 16 — Non-GAAP weighted-average common shares outstanding - Diluted 1,137 1,136 1,095 1,134 1,093 GAAP diluted earnings (loss) per share $ 0.79 $ 0.30 $ (1.31 ) $ 0.70 $ (5.34 ) Effects of the above adjustments 0.39 0.32 0.24 0.60 0.89 Non-GAAP diluted earnings (loss) per share $ 1.18 $ 0.62 $ (1.07 ) $ 1.30 $ (4.45 ) RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued 4th Qtr. 3rd Qtr. 4th Qtr. Year Ended August 29,
2024May 30,
2024August 31,
2023August 29,
2024August 31,
2023GAAP net cash provided by operating activities $ 3,405 $ 2,482 $ 249 $ 8,507 $ 1,559 Expenditures for property, plant, and equipment (3,120 ) (2,086 ) (1,461 ) (8,386 ) (7,676 ) Payments on equipment purchase contracts (22 ) (45 ) (26 ) (149 ) (138 ) Proceeds from sales of property, plant, and equipment 12 41 18 99 92 Proceeds from government incentives 48 33 462 315 710 Investments in capital expenditures, net (3,082 ) (2,057 ) (1,007 ) (8,121 ) (7,012 ) Adjusted free cash flow $ 323 $ 425 $ (758 ) $ 386 $ (5,453 ) The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income (loss), net income (loss), diluted shares, diluted earnings (loss) per share, and adjusted free cash flow. The non-GAAP adjustments above may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. We believe this non-GAAP information is helpful in understanding trends and in analyzing our operating results and earnings. We are providing this information to investors to assist in performing analysis of our operating results. When evaluating performance and making decisions on how to allocate our resources, management uses this non-GAAP information and believes investors should have access to similar data when making their investment decisions. We believe these non-GAAP financial measures increase transparency by providing investors with useful supplemental information about the financial performance of our business, enabling enhanced comparison of our operating results between periods and with peer companies. The presentation of these adjusted amounts varies from amounts presented in accordance with U.S. GAAP and therefore may not be comparable to amounts reported by other companies. Our management excludes the following items in analyzing our operating results and understanding trends in our earnings:
- Stock-based compensation;
- Gains and losses from settlements;
- Restructure and asset impairments;
- Goodwill impairment; and
- The estimated tax effects of above, non-cash changes in net deferred income taxes, assessments of tax exposures, certain tax matters related to prior fiscal periods, and significant changes in tax law. The divergence between our GAAP and non-GAAP income tax provision relates to the difference in our GAAP and non-GAAP estimated annual effective tax rates, which are computed separately.
Non-GAAP diluted shares are adjusted for the impact of additional shares resulting from the exclusion of stock-based compensation from non-GAAP income (loss).
MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOKFQ1-25 GAAP Outlook Adjustments Non-GAAP Outlook Revenue $8.70 billion ± $200 million — $8.70 billion ± $200 million Gross margin 38.5% ± 1.0% 1.0% A 39.5% ± 1.0% Operating expenses $1.211 billion ± $15 million $126 million B $1.085 billion ± $15 million Diluted earnings per share(1) $1.54 ± $0.08 $0.20 A, B, C $1.74 ± $0.08 Non-GAAP Adjustments
(in millions)A Stock-based compensation – cost of goods sold $ 87 A Other – cost of goods sold 4 B Stock-based compensation – research and development 76 B Stock-based compensation – sales, general, and administrative 50 C Tax effects of the above items and other tax adjustments 3 $ 220 (1) GAAP earnings per share based on approximately 1.12 billion diluted shares and non-GAAP earnings per share based on approximately 1.14 billion diluted shares. The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, additional restructuring activities, balance sheet valuation adjustments, strategic investments, financing transactions, and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.
Contacts: Satya Kumar Investor Relations satyakumar@micron.com (408) 450-6199 Erica Rodriguez Pompen Media Relations epompen@micron.com (408) 834-1873
