BOISE, Idaho, March 23, 2017 (GLOBE NEWSWIRE) -- Micron Technology, Inc., (NASDAQ:MU) today announced results of operations for its second quarter of fiscal 2017, which ended March 2, 2017. Revenues for the second quarter of fiscal 2017 were $4.65 billion and were 17 percent higher compared to the first quarter of fiscal 2017 and 58 percent higher compared to the second quarter of fiscal 2016.
"Strong demand and limited industry supply for NAND and DRAM solutions, combined with significant progress on our cost reduction plan, produced excellent results for our second quarter," said Micron CEO Mark Durcan. "I'm proud of the team's execution on critical technology and operational initiatives, which will allow us to continue to capitalize on market trends."
GAAP Income and Per Share Data – On a GAAP(1) basis, gross margin was 36.7 percent and net income attributable to Micron shareholders was $894 million, or $0.77 per diluted share, for the second quarter of fiscal 2017 compared to gross margin of 25.5 percent and net income of $180 million, or $0.16 per diluted share, for the first quarter of fiscal 2017 and gross margin of 19.7 percent and a net loss of $97 million, or ($0.09) per diluted share, for the second quarter of fiscal 2016.
Non-GAAP Income and Per Share Data – On a non-GAAP(2) basis, gross margin was 38.5 percent and net income attributable to Micron shareholders was $1.03 billion, or $0.90 per diluted share, for the second quarter of fiscal 2017 compared to gross margin of 26.0 percent and net income of $335 million, or $0.32 per diluted share, for the first quarter of fiscal 2017 and gross margin of 20.4 percent and net income of $12 million, or $0.01 per diluted share, for the second quarter of fiscal 2016. For a reconciliation of GAAP to non-GAAP results, see the accompanying financial tables and footnotes.
The increase in the company's revenues of 17 percent for the second quarter of fiscal 2017 compared to the first quarter of fiscal 2017 was due primarily to a 21 percent increase in DRAM average selling prices and an 18 percent increase in trade NAND sales volumes. The company's overall consolidated GAAP gross margin of 36.7 percent for the second quarter of fiscal 2017 was 11.2 percentage points higher compared to the first quarter of fiscal 2017 primarily due to increases in DRAM average selling prices and manufacturing cost reductions for both NAND and DRAM.
Investments in capital expenditures, net of amounts funded by partners, were $1.17 billion for the second quarter of fiscal 2017. The company ended the second quarter of fiscal 2017 with cash, marketable investments, and restricted cash of $4.58 billion.
The company will host a conference call Thursday, March 23, 2017 at 2:30 p.m. MT to discuss its financial results. The call, audio, and slides will be available online at http://edge.media-server.com/m/p/vuwo88xr. A webcast replay will be available on the company's website until March 23, 2018. A taped audio replay of the conference call will also be available at 1-404-537-3406 or 1-855-859-2056 (conference number: 77440341) beginning at 5:30 p.m. MT, Thursday, March 23, 2017 and continuing through Friday, March 31, 2017. For Investor Relations and other company updates, follow @MicronTech on Twitter at https://twitter.com/MicronTech.
Micron Technology is a world leader in innovative memory solutions. Through the company's global brands – Micron®, Crucial®, Lexar®, and Ballistix® – the company's broad portfolio of high-performance memory technologies, including DRAM, NAND, NOR Flash, and 3D XPoint™ memory, is transforming how the world uses information. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer, enterprise storage, data center, mobile, embedded, and automotive applications. Micron's common stock is traded on the Nasdaq under the MU symbol. To learn more about Micron Technology, Inc., visit www.micron.com.
The Micron logo and Micron symbol are trademarks of Micron Technology, Inc. All other trademarks are the property of their respective owners.
This press release contains forward-looking statements regarding the company's strategic position and financial results. 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 the company files with the Securities and Exchange Commission, specifically its most recent Form 10-K and Form 10-Q. These documents contain and identify important factors that could cause the company's actual results to differ materially from those contained in its forward-looking statements. These certain factors can be found at http://www.micron.com/certainfactors. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. The company is under no duty to update any of the forward-looking statements after the date of this release 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 the company's management excludes in analyzing the company's operating results and understanding trends in the company's earnings. Non-GAAP also includes the impact on shares used in per share calculations of the company's outstanding capped call transactions and from the exclusion of stock-based compensation. For a reconciliation of GAAP to non-GAAP results, see the accompanying financial tables and footnotes.
|MICRON TECHNOLOGY, INC.|
|CONSOLIDATED FINANCIAL SUMMARY|
(in millions except per share amounts)
|2nd Qtr.||1st Qtr.||2nd Qtr.||Six Months Ended|
|Cost of goods sold||2,944||2,959||2,355||5,903||4,856|
|Selling, general, and administrative||187||159||175||346||354|
|Research and development||473||470||403||943||824|
|Restructure and asset impairments (1)||4||29||1||33||16|
|Other operating (income) expense, net||(4||)||(6||)||5||(10||)||7|
|Operating income (loss)||1,044||359||(5||)||1,403||227|
|Interest income (expense), net (2)||(153||)||(132||)||(85||)||(285||)||(170||)|
|Other non-operating income (expense), net||34||(14||)||(6||)||20||(10||)|
|Income tax (provision) benefit (3)||(38||)||(31||)||(5||)||(69||)||(1||)|
|Equity in net income (loss) of equity method investees||7||(2||)||5||5||64|
|Net (income) attributable to noncontrolling interests||—||—||(1||)||—||(1||)|
|Net income (loss) attributable to Micron||$||894||$||180||$||(97||)||$||1,074||$||109|
|Earnings (loss) per share|
|Number of shares used in per share calculations|