Micron Technology, Inc. Reports Results for the Second Quarter of Fiscal 2024
AI demand and tight supply accelerate return to profitability
BOISE, Idaho, March 20, 2024 (GLOBE NEWSWIRE) — Micron Technology, Inc. (Nasdaq: MU) today announced results for its second quarter of fiscal 2024, which ended February 29, 2024.
Fiscal Q2 2024 highlights
-- Revenue of $5.82 billion versus $4.73 billion for the prior quarter and
$3.69 billion for the same period last year
-- GAAP net income of $793 million, or $0.71 per diluted share
-- Non-GAAP net income of $476 million, or $0.42 per diluted share
-- Operating cash flow of $1.22 billion versus $1.40 billion for the prior
quarter and $343 million for the same period last year
“Micron delivered fiscal Q2 results with revenue, gross margin and EPS well above the high-end of our guidance range — a testament to our team’s excellent execution on pricing, products and operations,” said Sanjay Mehrotra, President and CEO of Micron Technology. “Our preeminent product portfolio positions us well to deliver a strong fiscal second half of 2024. We believe Micron is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity enabled by AI.”
Quarterly Financial Results
GAAP(1) Non-GAAP(2)
-------------- ------------------------------------
(in millions,
except per
share
amounts) FQ2-24 FQ1-24 FQ2-23 FQ2-24 FQ1-24 FQ2-23
-------------- ---------- ----------- ----------- ---------- ----------- -----------
Revenue $5,824 $ 4,726 $ 3,693 $5,824 $ 4,726 $ 3,693
Gross margin 1,079 (35) (1,206) 1,163 37 (1,161)
percent of
revenue 18.5% (0.7%) (32.7%) 20.0% 0.8% (31.4%)
Operating
expenses 888 1,093 1,097 959 992 916
Operating
income
(loss) 191 (1,128) (2,303) 204 (955) (2,077)
percent of
revenue 3.3% (23.9%) (62.4%) 3.5% (20.2%) (56.2%)
Net income
(loss) 793 (1,234) (2,312) 476 (1,048) (2,081)
Diluted
earnings
(loss) per
share 0.71 (1.12) (2.12) 0.42 (0.95) (1.91)
Investments in capital expenditures, net(2) were $1.25 billion for the second quarter of 2024, which resulted in adjusted free cash flows(2) of negative $29 million. Micron ended the second quarter of 2024 with cash, marketable investments, and restricted cash of $9.72 billion. On March 20, 2024, Micron’s Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on April 16, 2024, to shareholders of record as of the close of business on April 1, 2024.
Business Outlook
The following table presents Micron’s guidance for the third quarter of 2024:
FQ3-24 GAAP(1) Outlook Non-GAAP(2) Outlook
Revenue $6.60 billion +/- $200 $6.60 billion +/- $200
million million
Gross margin 25.5% +/- 1.5% 26.5% +/- 1.5%
Operating expenses $1.11 billion +/- $15 $990 million +/- $15
million million
Diluted earnings per $0.17 +/- $0.07 $0.45 +/- $0.07
share
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, March 20, 2024 at 2:30 p.m. Mountain Time to discuss its second quarter financial results and provide forward-looking guidance for its third 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(R) and Crucial(R) brands. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence and 5G 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.
(c) 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, technology trends and developments, market demand, and our financial and operating results, including our guidance for the third quarter of 2024. 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)
2nd Qtr. 1st Qtr. 2nd Qtr. Six months ended
--------------------
November February
February 30, March 2, 29, March 2,
29, 2024 2023 2023 2024 2023
--------------- ---------- -------- -------- -------- ----------
Revenue $ 5,824 $ 4,726 $ 3,693 $10,550 $ 7,778
Cost of goods
sold 4,745 4,761 4,899 9,506 8,091
----- ------ ------ ------ ------
Gross
margin 1,079 (35) (1,206) 1,044 (313)
Research and
development 832 845 788 1,677 1,637
Selling,
general, and
administrative 280 263 231 543 482
Restructure and
asset
impairments -- -- 86 -- 99
Other operating
(income)
expense, net (224) (15) (8) (239) (19)
----- ------ ------ ------ ------
Operating
income
(loss) 191 (1,128) (2,303) (937) (2,512)
Interest income 130 132 119 262 207
Interest
expense (144) (132) (89) (276) (140)
Other
non-operating
income
(expense),
net (7) (27) 2 (34) (2)
----- ------ ------ ------ ------
170 (1,155) (2,271) (985) (2,447)
Income tax
(provision)
benefit 622 (73) (54) 549 (62)
Equity in net
income (loss)
of equity
method
investees 1 (6) 13 (5) 2
----- ------ ------ ------ ------
Net income
(loss) $ 793 $(1,234) $(2,312) $ (441) $(2,507)
===== ====== ====== ====== ======
Earnings (loss)
per share
Basic $ 0.72 $ (1.12) $ (2.12) $ (0.40) $ (2.30)
Diluted 0.71 (1.12) (2.12) (0.40) (2.30)
Number of
shares used in
per share
calculations
Basic 1,104 1,100 1,091 1,102 1,091
Diluted 1,114 1,100 1,091 1,102 1,091
MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
February 29, November 30, August 31,
As of 2024 2023 2023
-------------------------- -------------- -------------- --------------
Assets
Cash and equivalents $ 8,016 $ 8,075 $ 8,577
Short-term investments 990 973 1,017
Receivables 4,296 2,943 2,443