• Micron Technology, Inc. Reports Results for the First Quarter of Fiscal 2025

    Source: Nasdaq GlobeNewswire / 18 Dec 2024 15:02:49   America/Chicago

    Micron delivers record fiscal Q1 revenue, driven by strong AI demand
    Data center revenue grew over 40% sequentially and over 400% year over year

    BOISE, Idaho, Dec. 18, 2024 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its first quarter of fiscal 2025, which ended November 28, 2024.

    Fiscal Q1 2025 highlights

    • Revenue of $8.71 billion versus $7.75 billion for the prior quarter and $4.73 billion for the same period last year
    • GAAP net income of $1.87 billion, or $1.67 per diluted share
    • Non-GAAP net income of $2.04 billion, or $1.79 per diluted share
    • Operating cash flow of $3.24 billion versus $3.41 billion for the prior quarter and $1.40 billion for the same period last year

    “Micron delivered a record quarter, and our data center revenue surpassed 50% of our total revenue for the first time,” said Sanjay Mehrotra, President and CEO of Micron Technology. “While consumer-oriented markets are weaker in the near term, we anticipate a return to growth in the second half of our fiscal year. We continue to gain share in the highest margin and strategically important parts of the market and are exceptionally well positioned to leverage AI-driven growth to create substantial value for all stakeholders.”

    Quarterly Financial Results
    (in millions, except per share amounts)
    		GAAP(1) Non-GAAP(2)
    FQ1-25FQ4-24FQ1-24 FQ1-25FQ4-24FQ1-24
            
    Revenue$8,709 $7,750 $4,726  $8,709 $7,750 $4,726 
    Gross margin 3,348  2,737  (35)  3,441  2,826  37 
    percent of revenue 38.4% 35.3% (0.7%)  39.5% 36.5% 0.8%
    Operating expenses 1,174  1,215  1,093   1,047  1,081  992 
    Operating income (loss) 2,174  1,522  (1,128)  2,394  1,745  (955)
    percent of revenue 25.0% 19.6% (23.9%)  27.5% 22.5% (20.2%)
    Net income (loss) 1,870  887  (1,234)  2,037  1,342  (1,048)
    Diluted earnings (loss) per share 1.67  0.79  (1.12)  1.79  1.18  (0.95)


    Investments in capital expenditures, net(2) were $3.13 billion for the first quarter of 2025, which resulted in adjusted free cash flows(2) of $112 million for the first quarter of 2025. Micron ended the quarter with cash, marketable investments, and restricted cash of $8.75 billion. On December 18, 2024, Micron’s Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on January 15, 2025, to shareholders of record as of the close of business on December 30, 2024.

    Business Outlook

    The following table presents Micron’s guidance for the second quarter of 2025:

    FQ2-25GAAP(1) OutlookNon-GAAP(2) Outlook
       
    Revenue$7.90 billion ± $200 million$7.90 billion ± $200 million
    Gross margin37.5% ± 1.0%38.5% ± 1.0%
    Operating expenses$1.24 billion ± $15 million$1.10 billion ± $15 million
    Diluted earnings per share$1.26 ± $0.10$1.43 ± $0.10


    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, December 18, 2024 at 2:30 p.m. Mountain Time to discuss its first quarter financial results and provide forward-looking guidance for its second 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, 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 focus, demand for our products, and our financial and operating results, including our guidance for the second quarter of 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 our upcoming 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)
     
     1st Qtr.4th Qtr.1st Qtr.
     November 28,
    2024    		August 29,
    2024    		November 30,
    2023
        
    Revenue$8,709 $7,750 $4,726 
    Cost of goods sold 5,361  5,013  4,761 
    Gross margin 3,348  2,737  (35)
        
    Research and development 888  903  845 
    Selling, general, and administrative 288  295  263 
    Other operating (income) expense, net (2) 17  (15)
    Operating income (loss) 2,174  1,522  (1,128)
        
    Interest income 107  131  132 
    Interest expense (118) (136) (132)
    Other non-operating income (expense), net (11) (7) (27)
      2,152  1,510  (1,155)
        
    Income tax (provision) benefit (283) (623) (73)
    Equity in net income (loss) of equity method investees 1  —  (6)
    Net income (loss)$1,870 $887 $(1,234)
        
    Earnings (loss) per share   
    Basic$1.68 $0.80 $(1.12)
    Diluted 1.67  0.79  (1.12)
        
    Number of shares used in per share calculations   
    Basic 1,111  1,108  1,100 
    Diluted 1,122  1,125  1,100 


     
    MICRON TECHNOLOGY, INC.
    CONSOLIDATED BALANCE SHEETS
    (In millions)
    (Unaudited)
     
    As ofNovember 28,
    2024    		August 29,
    2024
       
    Assets  
    Cash and equivalents$6,693 $7,041 
    Short-term investments 895  1,065 
    Receivables 7,423  6,615 
    Inventories 8,705  8,875 
    Other current assets 777  776 
    Total current assets 24,493  24,372 
    Long-term marketable investments 1,156  1,046 
    Property, plant, and equipment 41,476  39,749 
    Operating lease right-of-use assets 622  645 
    Intangible assets 419  416 
    Deferred tax assets 474  520 
    Goodwill 1,150  1,150 
    Other noncurrent assets 1,671  1,518 
    Total assets$71,461 $69,416 
       
    Liabilities and equity  
    Accounts payable and accrued expenses$7,126 $7,299 
    Current debt 533  431 
    Other current liabilities 1,356  1,518 
    Total current liabilities 9,015  9,248 
    Long-term debt 13,252  12,966 
    Noncurrent operating lease liabilities 588  610 
    Noncurrent unearned government incentives 570  550 
    Other noncurrent liabilities 1,239  911 
    Total liabilities 24,664  24,285 
       
    Commitments and contingencies  
       
    Shareholders’ equity  
    Common stock 126  125 
    Additional capital 12,317  12,115 
    Retained earnings 42,427  40,877 
    Treasury stock (7,852) (7,852)
    Accumulated other comprehensive income (loss) (221) (134)
    Total equity 46,797  45,131 
    Total liabilities and equity$71,461 $69,416 
       


     
    MICRON TECHNOLOGY, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In millions)
    (Unaudited)
     
    Three months endedNovember 28,
    2024    		November 30,
    2023
       
    Cash flows from operating activities  
    Net income (loss)$1,870 $(1,234)
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:  
    Depreciation expense and amortization of intangible assets 2,030  1,915 
    Stock-based compensation 220  188 
    Change in operating assets and liabilities:  
    Receivables (817) (501)
    Inventories 170  111 
    Accounts payable and accrued expenses (241) 271 
    Other current liabilities (161) 579 
    Other 173  72 
    Net cash provided by operating activities 3,244  1,401 
       
    Cash flows from investing activities  
    Expenditures for property, plant, and equipment (3,206) (1,796)
    Purchases of available-for-sale securities (377) (199)
    Proceeds from maturities and sales of available-for-sale securities 428  374 
    Proceeds from government incentives 65  85 
    Other (58) (22)
    Net cash provided by (used for) investing activities (3,148) (1,558)
       
    Cash flows from financing activities  
    Payments of dividends to shareholders (131) (129)
    Repayments of debt (84) (53)
    Payments on equipment purchase contracts —  (56)
    Other (207) (114)
    Net cash provided by (used for) financing activities (422) (352)
       
    Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash (29) (1)
       
    Net increase (decrease) in cash, cash equivalents, and restricted cash (355) (510)
    Cash, cash equivalents, and restricted cash at beginning of period 7,052  8,656 
    Cash, cash equivalents, and restricted cash at end of period$6,697 $8,146 


     
    MICRON TECHNOLOGY, INC.
    RECONCILIATION OF GAAP TO NON-GAAP MEASURES
    (In millions, except per share amounts)
     
     1st Qtr.4th Qtr.1st Qtr.
     November 28,
    2024    		August 29,
    2024    		November 30,
    2023
        
    GAAP gross margin$3,348 $2,737 $(35)
    Stock-based compensation 90  85  67 
    Other 3  4  5 
    Non-GAAP gross margin$3,441 $2,826 $37 
        
    GAAP operating expenses$1,174 $1,215 $1,093 
    Stock-based compensation (127) (128) (115)
    Other —  (6) 14 
    Non-GAAP operating expenses$1,047 $1,081 $992 
        
    GAAP operating income (loss)$2,174 $1,522 $(1,128)
    Stock-based compensation 217  213  182 
    Other 3  10  (9)
    Non-GAAP operating income (loss)$2,394 $1,745 $(955)
        
    GAAP net income (loss)$1,870 $887 $(1,234)
    Stock-based compensation 217  213  182 
    Other —  6  (10)
    Estimated tax effects of above and other tax adjustments (50) 236  14 
    Non-GAAP net income (loss)$2,037 $1,342 $(1,048)
        
    GAAP weighted-average common shares outstanding - Diluted 1,122  1,125  1,100 
    Adjustment for stock-based compensation 16  12  — 
    Non-GAAP weighted-average common shares outstanding - Diluted 1,138  1,137  1,100 
        
    GAAP diluted earnings (loss) per share$1.67 $0.79 $(1.12)
    Effects of the above adjustments 0.12  0.39  0.17 
    Non-GAAP diluted earnings (loss) per share$1.79 $1.18 $(0.95)


     
    RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
     
     1st Qtr.4th Qtr.1st Qtr.
     November 28,
    2024    		August 29,
    2024    		November 30,
    2023
        
    GAAP net cash provided by operating activities$3,244 $3,405 $1,401 
        
    Expenditures for property, plant, and equipment (3,206) (3,120) (1,796)
    Payments on equipment purchase contracts —  (22) (56)
    Proceeds from sales of property, plant, and equipment 9  12  33 
    Proceeds from government incentives 65  48  85 
    Investments in capital expenditures, net (3,132) (3,082) (1,734)
    Adjusted free cash flow$112 $323 $(333)
     

    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 as applicable 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 OUTLOOK
     
    FQ2-25GAAP Outlook Adjustments Non-GAAP Outlook
           
    Revenue$7.90 billion ± $200 million —   $7.90 billion ± $200 million
    Gross margin37.5% ± 1.0% 1.0% A 38.5% ± 1.0%
    Operating expenses$1.24 billion ± $15 million $140 million B $1.10 billion ± $15 million
    Diluted earnings per share(1)$1.26 ± $0.10 $0.17 A, B, C $1.43 ± $0.10
     


    Non-GAAP Adjustments
    (in millions)
     
    AStock-based compensation – cost of goods sold$78 
    BStock-based compensation – research and development 85 
    BStock-based compensation – sales, general, and administrative 55 
    CTax effects of the above items and other tax adjustments (24)
     $194 

     

    (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

Mark Plungy
Media Relations
mplungy@micron.com
(408) 203-2910

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