Artificial Intelligence
Micron Technology, Inc. Reports Results for the Third Quarter of Fiscal 2021
BOISE, Idaho, June 30, 2021 (GLOBE NEWSWIRE) — Micron Technology, Inc. (Nasdaq: MU) today announced results for its third quarter of fiscal 2021, which ended June 3, 2021.
Fiscal Q3 2021 highlights
- Revenue of $7.42 billion versus $6.24 billion for the prior quarter and $5.44 billion for the same period last year
- GAAP net income of $1.74 billion, or $1.52 per diluted share
- Non-GAAP net income of $2.17 billion, or $1.88 per diluted share
- Operating cash flow of $3.56 billion versus $3.06 billion for the prior quarter and $2.02 billion for the same period last year
“Micron set multiple market and product revenue records in our third quarter and achieved the largest sequential earnings improvement in our history,” said Micron Technology President and CEO Sanjay Mehrotra. “Our industry-leading 1α DRAM and 176-layer NAND now represent a meaningful portion of our production, and Micron is in the best position ever to capitalize on the long-term demand trends across the data center, intelligent edge and user devices.”
Quarterly Financial Results | ||||||||||||||||||
GAAP(1) | Non-GAAP(2) | |||||||||||||||||
(in millions, except per share amounts) | FQ3-21 | FQ2-21 | FQ3-20 | FQ3-21 | FQ2-21 | FQ3-20 | ||||||||||||
Revenue | $ | 7,422 | $ | 6,236 | $ | 5,438 | $ | 7,422 | $ | 6,236 | $ | 5,438 | ||||||
Gross margin | 3,126 | 1,649 | 1,763 | 3,185 | 2,054 | 1,804 | ||||||||||||
percent of revenue | 42.1 | % | 26.4 | % | 32.4 | % | 42.9 | % | 32.9 | % | 33.2 | % | ||||||
Operating expenses | 1,327 | 986 | 875 | 821 | 797 | 823 | ||||||||||||
Operating income | 1,799 | 663 | 888 | 2,364 | 1,257 | 981 | ||||||||||||
percent of revenue | 24.2 | % | 10.6 | % | 16.3 | % | 31.9 | % | 20.2 | % | 18.0 | % | ||||||
Net income attributable to Micron | 1,735 | 603 | 803 | 2,173 | 1,128 | 941 | ||||||||||||
Diluted earnings per share | 1.52 | 0.53 | 0.71 | 1.88 | 0.98 | 0.82 |
Investments in capital expenditures, net(2) were $2.04 billion for the third quarter of 2021, which resulted in adjusted free cash flows(2) of $1.52 billion. Micron ended the quarter with cash, marketable investments, and restricted cash of $9.82 billion, for a net cash(2) position of $3.10 billion.
Business Outlook
The following table presents Micron’s guidance for the fourth quarter of 2021:
FQ4-21 | GAAP(1) Outlook | Non-GAAP(2) Outlook |
Revenue | $8.2 billion ± $200 million | $8.2 billion ± $200 million |
Gross margin | 46.0% ± 1% | 47.0% ± 1% |
Operating expenses | $955 million ± $25 million | $900 million ± $25 million |
Diluted earnings per share | $2.23 ± $0.10 | $2.30 ± $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, June 30, 2021, at 2:30 p.m. MT, to discuss its third quarter financial results and provide forward-looking guidance for its fourth 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 @MicronTech on Twitter at twitter.com/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 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.
© 2021 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, the completion of and timing for closing the pending sale of our Lehi facility, and our financial and operating 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 we file with the Securities and Exchange Commission, specifically 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 www.micron.com/certainfactors. 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 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 management excludes in analyzing our operating results and understanding trends in our earnings, adjusted free cash flow, net cash, 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)
3rd Qtr. | 2nd Qtr. | 3rd Qtr. | Nine Months Ended | ||||||||||||
June 3, 2021 |
March 4, 2021 |
May 28, 2020 |
June 3, 2021 |
May 28, 2020 |
|||||||||||
Revenue | $ | 7,422 | $ | 6,236 | $ | 5,438 | $ | 19,431 | $ | 15,379 | |||||
Cost of goods sold | 4,296 | 4,587 | 3,675 | 12,920 | 10,895 | ||||||||||
Gross margin | 3,126 | 1,649 | 1,763 | 6,511 | 4,484 | ||||||||||
Research and development | 670 | 641 | 649 | 1,958 | 1,970 | ||||||||||
Selling, general, and administrative | 230 | 214 | 216 | 658 | 650 | ||||||||||
Restructure and asset impairments | 453 | 5 | 4 | 466 | 10 | ||||||||||
Other operating (income) expense, net | (26 | ) | 126 | 6 | 101 | 8 | |||||||||
Operating income | 1,799 | 663 | 888 | 3,328 | 1,846 | ||||||||||
Interest income | 8 | 10 | 23 | 28 | 101 | ||||||||||
Interest expense | (46 | ) | (42 | ) | (51 | ) | (136 | ) | (144 | ) | |||||
Other non-operating income (expense), net | 45 | 4 | 10 | 62 | 55 | ||||||||||
1,806 | 635 | 870 | 3,282 | 1,858 | |||||||||||
Income tax (provision) benefit | (65 | ) | (48 | ) | (68 | ) | (164 | ) | (144 | ) | |||||
Equity in net income (loss) of equity method investees | (6 | ) | 16 | 3 | 23 | 6 | |||||||||
Net income | 1,735 | 603 | 805 | 3,141 | 1,720 | ||||||||||
Net income attributable to noncontrolling interests | — | — | (2 | ) | — | (21 | ) | ||||||||
Net income attributable to Micron | $ | 1,735 | $ | 603 | $ | 803 | $ | 3,141 | $ | 1,699 | |||||
Earnings per share | |||||||||||||||
Basic | $ | 1.55 | $ | 0.54 | $ | 0.72 | $ | 2.81 | $ | 1.53 | |||||
Diluted | 1.52 | 0.53 | 0.71 | 2.75 | 1.50 | ||||||||||
Number of shares used in per share calculations | |||||||||||||||
Basic | 1,121 | 1,120 | 1,111 | 1,119 | 1,110 | ||||||||||
Diluted | 1,145 | 1,144 | 1,129 | 1,141 | 1,131 |
MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
June 3, | March 4, | September 3, | |||||||||||||
As of | 2021 | 2021 | 2020 | ||||||||||||
Assets | |||||||||||||||
Cash and equivalents | $ | 7,759 | $ | 6,507 | $ | 7,624 | |||||||||
Short-term investments | 590 | 677 | 518 | ||||||||||||
Receivables | 4,231 | 3,353 | 3,912 | ||||||||||||
Inventories | 4,537 | 4,743 | 5,373 | ||||||||||||
Assets held for sale | 966 | 1,461 | — | ||||||||||||
Other current assets | 478 | 538 | 538 | ||||||||||||
Total current assets | 18,561 | 17,279 | 17,965 | ||||||||||||
Long-term marketable investments | 1,399 | 1,316 | 1,048 | ||||||||||||
Property, plant, and equipment | 32,209 | 31,848 | 31,031 | ||||||||||||
Operating lease right-of-use assets | 558 | 575 | 584 | ||||||||||||
Intangible assets | 350 | 342 | 334 | ||||||||||||
Deferred tax assets | 822 | 726 | 707 | ||||||||||||
Goodwill | 1,228 | 1,228 | 1,228 | ||||||||||||
Other noncurrent assets | 816 | 821 | 781 | ||||||||||||
Total assets | $ | 55,943 | $ | 54,135 | $ | 53,678 | |||||||||
Liabilities and equity | |||||||||||||||
Accounts payable and accrued expenses | $ | 4,427 | $ | 4,550 | $ | 5,817 | |||||||||
Current debt | 297 | 323 | 270 | ||||||||||||
Other current liabilities | 738 | 560 | 548 | ||||||||||||
Total current liabilities | 5,462 | 5,433 | 6,635 | ||||||||||||
Long-term debt | 6,418 | 6,298 | 6,373 | ||||||||||||
Noncurrent operating lease liabilities | 513 | 528 | 533 | ||||||||||||
Noncurrent unearned government incentives | 722 | 661 | 643 | ||||||||||||
Other noncurrent liabilities | 569 | 552 | 498 | ||||||||||||
Total liabilities | 13,684 | 13,472 | 14,682 | ||||||||||||
Commitments and contingencies | |||||||||||||||
Shareholders’ equity | |||||||||||||||
Common stock | 120 | 120 | 119 | ||||||||||||
Additional capital | 9,285 | 9,234 | 8,917 | ||||||||||||
Retained earnings | 36,452 | 34,723 | 33,384 | ||||||||||||
Treasury stock | (3,645 | ) | (3,495 | ) | (3,495 | ) | |||||||||
Accumulated other comprehensive income (loss) | 47 | 81 | 71 | ||||||||||||
Total equity | 42,259 | 40,663 | 38,996 | ||||||||||||
Total liabilities and equity | $ | 55,943 | $ | 54,135 | $ | 53,678 |
MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
June 3, | May 28, | |||||
Nine months ended | 2021 | 2020 | ||||
Cash flows from operating activities | ||||||
Net income | $ | 3,141 | $ | 1,720 | ||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||
Depreciation expense and amortization of intangible assets | 4,593 | 4,083 | ||||
Amortization of debt discount and other costs | 22 | 20 | ||||
Noncash restructure and asset impairment | 446 | (7 | ) | |||
Stock-based compensation | 285 | 239 | ||||
(Gain) loss on debt prepayments, repurchases, and conversions | 1 | (40 | ) | |||
Change in operating assets and liabilities | ||||||
Receivables | (340 | ) | (461 | ) | ||
Inventories | 814 | (248 | ) | |||
Accounts payable and accrued expenses | (309 | ) | 700 | |||
Deferred income taxes, net | (94 | ) | 26 | |||
Other | 25 | 3 | ||||
Net cash provided by operating activities | 8,584 | 6,035 | ||||
Cash flows from investing activities | ||||||
Expenditures for property, plant, and equipment | (8,015 | ) | (5,943 | ) | ||
Purchases of available-for-sale securities | (1,919 | ) | (793 | ) | ||
Proceeds from maturities of available-for-sale securities | 1,024 | 636 | ||||
Proceeds from sales of available-for-sale securities | 473 | 1,157 | ||||
Proceeds from government incentives | 335 | 140 | ||||
Other | 47 | (48 | ) | |||
Net cash provided by (used for) investing activities | (8,055 | ) | (4,851 | ) | ||
Cash flows from financing activities | ||||||
Repayments of debt | (1,344 | ) | (4,286 | ) | ||
Payments on equipment purchase contracts | (139 | ) | (49 | ) | ||
Acquisition of noncontrolling interest in IMFT | — | (744 | ) | |||
Proceeds from issuance of debt | 1,188 | 5,000 | ||||
Other | (142 | ) | (56 | ) | ||
Net cash provided by (used for) financing activities | (437 | ) | (135 | ) | ||
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash | 44 | (8 | ) | |||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 136 | 1,041 | ||||
Cash, cash equivalents, and restricted cash at beginning of period | 7,690 | 7,279 | ||||
Cash, cash equivalents, and restricted cash at end of period | $ | 7,826 | $ | 8,320 |
MICRON TECHNOLOGY, INC. NOTES
(Unaudited)
Inventory
Effective as of the beginning of the second quarter of 2021, we changed our method of inventory costing from average cost to FIFO. This change in accounting principle is preferable because in an environment with continuously changing production costs FIFO more closely matches the actual cost of goods sold with the revenues from sales of those specific units, better represents the actual cost of inventories remaining on hand at any period- end, and improves comparability with our semiconductor industry peers. The change to FIFO was not material to any prior periods, nor was the cumulative effect of $133 million material to the second quarter of 2021. As such, prior periods were not retrospectively adjusted, and the cumulative effect was reported as an increase to cost of goods sold for the second quarter of 2021 of $133 million, with an offsetting reduction to beginning inventories. This charge resulted in a corresponding reduction to operating income, a $128 million reduction to net income, and an $0.11 reduction to diluted earnings per share for both the second quarter and first nine months of 2021.
Beginning in the second quarter of 2021, we changed the classification of spare parts for equipment to better align with the manner in which they are used in operations. As a result, we now present spare parts as other current assets and no longer as a component of raw materials inventories. This reclassification was applied on a retrospective basis. As a result, $256 million of spare parts were presented in other current assets as of June 3, 2021, and we reclassified spare parts from inventories to other current assets of $270 million and $234 million in the accompanying balance sheets as of March 4, 2021 and September 3, 2020, respectively.
Lehi, Utah, Fab and 3D XPoint Change
In the second quarter of 2021, we updated our portfolio strategy to further strengthen our focus on memory and storage innovations for the data center market. In connection therewith, we determined that there was insufficient market validation to justify the ongoing investments required to commercialize 3D XPointTM at scale. Accordingly, we ceased development of 3D XPoint technology and engaged in discussions with potential buyers for the sale of our facility located in Lehi that was dedicated to 3D XPoint production. As a result, we classified the property, plant, and equipment as held-for-sale and ceased depreciating the assets. On June 30, 2021, we announced that we have entered into a definitive agreement to sell our Lehi facility to Texas Instruments for cash consideration of $900 million. The sale is anticipated to close later this calendar year.
In the third quarter of 2021, we recognized a charge of $435 million included in restructure and asset impairments (and a tax benefit of $104 million included in income tax (provision) benefit) to write down the assets held for sale to the expected consideration, net of estimated selling costs, to be realized from the sale of these assets and liabilities. The impairment charge was based on Level 3 inputs including expected consideration and the composition of assets included in the sale, which were derived from the agreement with TI. In the second quarter of 2021, we also recognized a charge of $49 million to cost of goods sold to write down 3D XPoint inventory due to our decision to cease further development of this technology.
As of June 3, 2021, the significant balances of assets held-for-sale in connection with our Lehi facility were as follows:
June 3, | |||
As of | 2021 | ||
Property, plant, and equipment | $ | 1,343 | |
Other current assets | 52 | ||
Impairment | (435 | ) | |
Lehi assets held for sale | $ | 960 |
As of June 3, 2021, we also had a $51 million finance lease obligation included in the current portion of long-term debt and $12 million of other liabilities that we expect to transfer with the sale. The expected cash consideration, net of estimated selling expenses, approximates the carrying value of the net assets and liabilities expected to transfer in the sale, after giving effect to the impairment charge discussed above.
MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In millions, except per share amounts)
3rd Qtr. June 3, 2021 |
2nd Qtr. March 4, 2021 |
3rd Qtr. May 28, 2020 |
|||||||
GAAP gross margin | $ | 3,126 | $ | 1,649 | $ | 1,763 | |||
Stock-based compensation | 45 | 57 | 34 | ||||||
Inventory accounting policy change to FIFO | — | 133 | — | ||||||
Change in inventory cost absorption | — | 160 | — | ||||||
3D XPoint inventory write-down | — | 49 | — | ||||||
Other | 14 | 6 | 7 | ||||||
Non-GAAP gross margin | $ | 3,185 | $ | 2,054 | $ | 1,804 | |||
GAAP operating expenses | $ | 1,327 | $ | 986 | $ | 875 | |||
Stock-based compensation | (53 | ) | (55 | ) | (48 | ) | |||
Patent license charges | — | (128 | ) | — | |||||
Restructure and asset impairments | (453 | ) | (5 | ) | (4 | ) | |||
Other | — | (1 | ) | — | |||||
Non-GAAP operating expenses | $ | 821 | $ | 797 | $ | 823 | |||
GAAP operating income | $ | 1,799 | $ | 663 | $ | 888 | |||
Stock-based compensation | 98 | 112 | 82 | ||||||
Inventory accounting policy change to FIFO | — | 133 | — | ||||||
Change in inventory cost absorption | — | 160 | — | ||||||
3D XPoint inventory write-down | — | 49 | — | ||||||
Patent license charges | — | 128 | — | ||||||
Restructure and asset impairments | 453 | 5 | 4 | ||||||
Other | 14 | 7 | 7 | ||||||
Non-GAAP operating income | $ | 2,364 | $ | 1,257 | $ | 981 | |||
GAAP net income attributable to Micron | $ | 1,735 | $ | 603 | $ | 803 | |||
Stock-based compensation | 98 | 112 | 82 | ||||||
Inventory accounting policy change to FIFO | — | 133 | — | ||||||
Change in inventory cost absorption | — | 160 | — | ||||||
3D XPoint inventory write-down | — | 49 | — | ||||||
Patent license charges | — | 128 | — | ||||||
Restructure and asset impairments | 453 | 5 | 4 | ||||||
Amortization of debt discount and other costs | 7 | 8 | 4 | ||||||
Other | 15 | 7 | 9 | ||||||
Estimated tax effects of above and other tax adjustments | (135 | ) | (77 | ) | 39 | ||||
Non-GAAP net income attributable to Micron | $ | 2,173 | $ | 1,128 | $ | 941 | |||
GAAP weighted-average common shares outstanding – Diluted | 1,145 | 1,144 | 1,129 | ||||||
Adjustment for stock-based compensation and capped calls | 9 | 10 | 13 | ||||||
Non-GAAP weighted-average common shares outstanding – Diluted | 1,154 | 1,154 | 1,142 | ||||||
GAAP diluted earnings per share | $ | 1.52 | $ | 0.53 | $ | 0.71 | |||
Effects of the above adjustments | 0.36 | 0.45 | 0.11 | ||||||
Non-GAAP diluted earnings per share | $ | 1.88 | $ | 0.98 | $ | 0.82 |
RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
3rd Qtr. June 3, 2021 |
2nd Qtr. March 4, 2021 |
3rd Qtr. May 28, 2020 |
|||||||
GAAP net cash provided by operating activities | $ | 3,560 | $ | 3,057 | $ | 2,023 | |||
Investments in capital expenditures, net | |||||||||
Expenditures for property, plant, and equipment, net(1) | (2,185 | ) | (3,000 | ) | (1,937 | ) | |||
Payments on equipment purchase contracts | (16 | ) | (26 | ) | (20 | ) | |||
Amounts funded by partners | 159 | 143 | 35 | ||||||
Adjusted free cash flow | $ | 1,518 | $ | 174 | $ | 101 |
(1) Expenditures for property, plant, and equipment, net include proceeds from sales of property, plant, and equipment of $74 million for the third quarter of 2021, $18 million for the second quarter of 2021, and $7 million for the third quarter of 2020.
June 3, |
March 4, |
September 3, |
||||||||||||
As of | 2021 | 2021 | 2020 | |||||||||||
Cash and short-term investments | $ | 8,349 | $ | 7,184 | $ | 8,142 | ||||||||
Current and noncurrent restricted cash | 67 | 67 | 66 | |||||||||||
Long-term marketable investments | 1,399 | 1,316 | 1,048 | |||||||||||
Current and long-term debt | (6,715 | ) | (6,621 | ) | (6,643 | ) | ||||||||
Net cash | $ | 3,100 | $ | 1,946 | $ | 2,613 |
The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income, net income attributable to Micron, diluted shares, diluted earnings per share, adjusted free cash flow, and net cash. 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;
- Flow-through of business acquisition-related inventory adjustments;
- Acquisition-related costs;
- Start-up and preproduction costs;
- Employee severance;
- Patent license charges;
- Restructure and asset impairments;
- Amortization of debt discount and other costs, including the accretion of non-cash interest expense associated with our convertible notes and other debt;
- Gains and losses from debt repurchases and conversions;
- Gains and losses from business acquisition activities;
- Initial impact of inventory accounting policy change to FIFO and change in inventory cost absorption in the second quarter of 2021; 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.
Non-GAAP diluted shares are adjusted for the impact of additional shares resulting from the exclusion of stock- based compensation from non-GAAP income. Non-GAAP diluted shares also include the impact of capped calls, which are anti-dilutive in GAAP earnings per share but are expected to mitigate the dilutive effect of convertible notes, based on the average share price for the period the capped calls were outstanding.
MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
FQ4-21 | GAAP Outlook | Adjustments |
Non-GAAP Outlook | ||||
Revenue | $8.2 billion ± $200 million | — | $8.2 billion ± $200 million | ||||
Gross margin | 46.0% ± 1% | 1% | A | 47.0% ± 1% | |||
Operating expenses | $955 million ± $25 million | $55 million | B | $900 million ± $25 million | |||
Diluted earnings per share(1) | $2.23 ± $0.10 | $0.07 | A, B, C | $2.30 ± $0.10 | |||
Non-GAAP Adjustments | |||||||
(in millions) | |||||||
A Stock-based compensation – cost of goods sold | $ | 45 | |||||
A Other – cost of goods sold | 6 | ||||||
B Stock-based compensation – research and development | 30 | ||||||
B Stock-based compensation – sales, general, and administrative | 25 | ||||||
C Tax effects of the above items and non-cash changes in net deferred income taxes | (25) | ||||||
$ | 81 |
(1) GAAP and non-GAAP earnings per share based on approximately 1.15 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, 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.
Artificial Intelligence
JupiterOne and watchTowr announce partnership to protect business critical assets with broad exposure management capabilities
SINGAPORE, May 2, 2024 /PRNewswire/ — watchTowr, a leader in external attack surface management (EASM) technology and fuelled by watchTowr Labs, a renowned vulnerability R&D capability, has formed a strategic partnership with JupiterOne. JupiterOne is a leader in cyber asset attack surface management (CAASM) technology. This collaboration enables customers to rapidly prioritize emerging threats within their constantly changing environments, focusing on fixing the most critical risks impacting their business, which enables an end-to-end continuous threat exposure management process (CTEM).
Over 28,000 CVE records were published in 2023; a figure that is expected to increase as attackers shorten the time from known vulnerability to exploit, reducing it from weeks to days. JupiterOne and watchTowr’s integrated solution empowers enterprises to discover their most critical and exploitable vulnerabilities, prioritize them with asset context based on business impact and receive an actionable remediation plan to improve security posture.
This partnership enables a complete continuous threat exposure management program, addressing the full spectrum of cyber risk management. The fully integrated solution provides continuous monitoring and assessment of both internal and external digital assets, allowing for prioritization and effective threat mitigation for a business’s most critical assets. “Our partnership with watchTowr is a game-changer” said Forte. “Combining our data aggregation with real-time asset discovery and automated security testing allows us to offer a unique, all-encompassing approach to exposure management.”
Benjamin Harris, CEO, watchTowr, said, “While the number of reported vulnerabilities continues to rise, the vulnerabilities that matter – in mission-critical, key systems – have exploded at an alarming rate. This reality, combined with the significant shift in speed by attackers to weaponize vulnerabilities – the ability to validate exploitability and prioritise actions based on real business risk has never been more vital. We’re excited to join forces with JupiterOne to give security teams around the globe this much-needed end-to-end capability.”
About JupiterOne:
JupiterOne is a cybersecurity startup delivering powerful software solutions to companies across all industries, providing deep insights to cyber assets and the relationships between, empowering security professionals to have true knowledge and ownership of their attack surfaces.
About watchTowr:
watchTowr is a global cybersecurity technology company, built by former adversaries.
watchTowr’s world-class External Attack Surface Management and Continuous Automated Red Teaming technology is informed by years of experience compromising some of the world’s most targeted organisations and utilised by Fortune 500, financial services and critical infrastructure providers every day.
Photo – https://mma.prnewswire.com/media/2401497/watchTowr_JupiterOne.jpg
View original content:https://www.prnewswire.co.uk/news-releases/jupiterone-and-watchtowr-announce-partnership-to-protect-business-critical-assets-with-broad-exposure-management-capabilities-302132392.html
Artificial Intelligence
Clarivate Declares Dividend on Mandatory Convertible Preferred Shares
LONDON, May 1, 2024 /PRNewswire/ — Clarivate Plc (NYSE: CLVT; CLVT PR A) (“Clarivate”), a leading global provider of transformative intelligence, today announced that its board of directors declared a quarterly dividend of $1.3125 per share on its 5.25% Series A Mandatory Convertible Preferred Shares (the “Preferred Shares”), payable in cash on June 3, 2024 to shareholders of record at the close of business on May 15, 2024.
On the mandatory conversion date, which is scheduled to occur on June 3, 2024, each Preferred Share will automatically and mandatorily convert into a number of ordinary shares of Clarivate (and cash in lieu of any fractional ordinary shares) based on the average volume weighted average price (“VWAP”) of Clarivate’s ordinary shares over a 30-trading day period that begins on, and includes, April 18, 2024 and is scheduled to end on, and include, May 30, 2024 (the “valuation period”). If such VWAP is (i) greater than $31.20, then the mandatory conversion rate will be 3.2052 ordinary shares of Clarivate per Preferred Share, (ii) less than or equal to $31.20 but equal to or greater than $26.00, then the mandatory conversion rate will be a number of ordinary shares of Clarivate per Preferred Share equal to $100.00 divided by such VWAP and (iii) less than $26.00, then the mandatory conversion rate will be 3.8462 ordinary shares of Clarivate per Preferred Share. The mandatory conversion rate will be announced following the end of the valuation period. The above description of the terms of the Preferred Shares is not complete and is subject to, and qualified in its entirety by reference to, the “Statement of Rights” for the Preferred Shares, which is filed as Exhibit 3.2 to Clarivate’s annual report on Form 10-K for the fiscal year ended December 31, 2023.
Cautionary Note Regarding Forward-Looking Statements
This communication contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management’s current views concerning future business, events, trends, contingencies, financial performance, or financial condition, appear at various places in this communication and may use words like “aim,” “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “goal,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “see,” “seek,” “should,” “strategy,” “strive,” “target,” “will,” and “would” and similar expressions, and variations or negatives of these words. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on management’s current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. These forward-looking statements involve a number of risks and uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include those factors discussed under the caption “Risk Factors” in our annual report on Form 10-K, along with our other filings with the U.S. Securities and Exchange Commission (“SEC”). However, those factors should not be considered to be a complete statement of all potential risks and uncertainties. Additional risks and uncertainties not known to us or that we currently deem immaterial may also adversely affect our business operations. Forward-looking statements are based only on information currently available to our management and speak only as of the date of this communication. We do not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, except as otherwise required by securities and other applicable laws. Please consult our public filings with the SEC or on our website at www.clarivate.com.
About Clarivate
Clarivate™ is a leading global provider of transformative intelligence. We offer enriched data, insights & analytics, workflow solutions and expert services in the areas of Academia & Government, Intellectual Property and Life Sciences & Healthcare. For more information, please visit www.clarivate.com.
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Artificial Intelligence
CGTN: 3rd CMG Forum in Beijing discusses AI development
BEIJING, May 1, 2024 /PRNewswire/ — Focusing on the development of AI, the third CMG Forum was held on Monday in Beijing.
Li Shulei, a member of the Political Bureau of the Communist Party of China (CPC) Central Committee and the head of the Publicity Department of the CPC Central Committee, attended the opening of the event and delivered a speech.
Guests at the forum stressed the role of media in promoting the innovative application of AI as well as its governance.
Efforts should also be made to boost the development of AI in creating positive, healthy, diverse and high-quality content, so that AI can become a force for good and benefit mankind, they agreed.
They also called on media to accelerate intelligent transformation and help bridge international exchanges and cooperation on the governance of AI to facilitate its healthy, orderly and safe development.
Hosted by China Media Group (CMG), the forum attracted more than 200 participants from international organizations, media, think tanks and multinational companies.
“Innovation and breakthroughs in science and technology not only guide the development and progress of human civilization, but also bring uncertainty to the changing world,” said Shen Haixiong, vice minister of the Publicity Department of the CPC Central Committee and president of CMG. He called for efforts to jointly create valuable and responsible artificial intelligence.
AI technology is affecting every aspect of our lives. Thomas Bach, president of the International Olympic Committee (IOC), stated in a video speech that CMG has always been a partner of the IOC, bringing the charm of the Olympic Games to hundreds of millions of Chinese viewers. He said the IOC invites CMG to work together for the creation of a future with the application of AI in Olympic sports.
“From ancient inventions such as silk, printing and the compass to modern technological advances such as robotics, telecommunications and green technology, China has always been committed to innovation and creation,” said Daren Tang, director general of the World Intellectual Property Organization (WIPO). He said WIPO pays close attention to ensuring a balance between the opportunities and risks of artificial intelligence and is committed to strengthening cooperation to ensure that artificial intelligence is properly used.
https://news.cgtn.com/news/2024-04-30/3rd-CMG-Forum-in-Beijing-discusses-AI-development-1tdDcXvCexG/p.html
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