Artificial Intelligence
Micron Technology, Inc. Reports Results for the Fourth Quarter and Full Year of Fiscal 2021
BOISE, Idaho, Sept. 28, 2021 (GLOBE NEWSWIRE) — Micron Technology, Inc. (Nasdaq: MU) today announced results for its fourth quarter and full year of fiscal 2021, which ended Sept. 2, 2021.
Fiscal Q4 2021 highlights
- Revenue of $8.27 billion versus $7.42 billion for the prior quarter and $6.06 billion for the same period last year
- GAAP net income of $2.72 billion, or $2.39 per diluted share
- Non-GAAP net income of $2.78 billion, or $2.42 per diluted share
- Operating cash flow of $3.88 billion versus $3.56 billion for the prior quarter and $2.27 billion for the same period last year
Fiscal 2021 highlights
- Revenue of $27.71 billion versus $21.44 billion for the prior year
- GAAP net income of $5.86 billion, or $5.14 per diluted share
- Non-GAAP net income of $6.98 billion, or $6.06 per diluted share
- Operating cash flow of $12.47 billion versus $8.31 billion for the prior year
“Micron’s outstanding fourth quarter execution capped a year of several key milestones,” said Micron Technology President and CEO Sanjay Mehrotra. “In fiscal 2021, we established DRAM and NAND technology leadership, drove record revenues across multiple markets, and initiated a quarterly dividend. The demand outlook for 2022 is strong, and Micron is delivering innovative solutions to our customers, fueling our long-term growth.”
Quarterly Financial Results
| GAAP(1) |
Non-GAAP(2) | ||||||||||||||||||
| (in millions, except per share amounts) | FQ4-21 |
FQ3-21 |
FQ4-20 |
FQ4-21 |
FQ3-21 |
FQ4-20 |
|||||||||||||
| Revenue | $ | 8,274 | $ | 7,422 | $ | 6,056 | $ | 8,274 | $ | 7,422 | $ | 6,056 | |||||||
| Gross margin | 3,912 | 3,126 | 2,068 | 3,964 | 3,185 | 2,111 | |||||||||||||
| percent of revenue | 47.3 | % | 42.1 | % | 34.1 | % | 47.9 | % | 42.9 | % | 34.9 | % | |||||||
| Operating expenses | 957 | 1,327 | 911 | 891 | 821 | 809 | |||||||||||||
| Operating income | 2,955 | 1,799 | 1,157 | 3,073 | 2,364 | 1,302 | |||||||||||||
| percent of revenue | 35.7 | % | 24.2 | % | 19.1 | % | 37.1 | % | 31.9 | % | 21.5 | % | |||||||
| Net income attributable to Micron | 2,720 | 1,735 | 988 | 2,778 | 2,173 | 1,229 | |||||||||||||
| Diluted earnings per share | 2.39 | 1.52 | 0.87 | 2.42 | 1.88 | 1.08 | |||||||||||||
Annual Financial Results
| GAAP(1) |
Non-GAAP(2) | ||||||||||||
| (in millions, except per share amounts) | FY 21 |
FY 20 |
FY 21 |
FY 20 |
|||||||||
| Revenue | $ | 27,705 | $ | 21,435 | $ | 27,705 | $ | 21,435 | |||||
| Gross margin | 10,423 | 6,552 | 10,987 | 6,718 | |||||||||
| percent of revenue | 37.6 | % | 30.6 | % | 39.7 | % | 31.3 | % | |||||
| Operating expenses | 4,140 | 3,549 | 3,320 | 3,299 | |||||||||
| Operating income | 6,283 | 3,003 | 7,667 | 3,419 | |||||||||
| percent of revenue | 22.7 | % | 14.0 | % | 27.7 | % | 16.0 | % | |||||
| Net income attributable to Micron | 5,861 | 2,687 | 6,976 | 3,235 | |||||||||
| Diluted earnings per share | 5.14 | 2.37 | 6.06 | 2.83 | |||||||||
Investments in capital expenditures, net(2) were $2.01 billion for the fourth quarter of 2021 and $9.72 billion for the full year of 2021, which resulted in adjusted free cash flows(2) of $1.88 billion for the fourth quarter of 2021 and $2.75 billion for the full year of 2021. Micron repurchased approximately 13.9 million shares of its common stock for $1.05 billion during the fourth quarter of 2021 and 15.6 million shares of its common stock for $1.20 billion during the full year of 2021 and ended the year with cash, marketable investments, and restricted cash of $10.46 billion, for a net cash(2) position of $3.69 billion.
Business Outlook
The following table presents Micron’s guidance for the first quarter of 2022:
| FQ1-22 | GAAP(1) Outlook | Non-GAAP(2) Outlook |
| Revenue | $7.65 billion ± $200 million | $7.65 billion ± $200 million |
| Gross margin | 46.0% ± 1% | 47.0% ± 1% |
| Operating expenses | $986 million ± $25 million | $915 million ± $25 million |
| Diluted earnings per share | $2.00 ± $0.10 | $2.10 ± $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 Tuesday, Sept. 28, 2021 at 2:30 p.m. MT 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 @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)
| 4th Qtr. | 3rd Qtr. | 4th Qtr. | Year Ended |
||||||||||||
| September 2, | June 3, | September 3, | September 2, | September 3, | |||||||||||
| 2021 | 2021 | 2020 | 2021 | 2020 | |||||||||||
| Revenue | $ | 8,274 | $ | 7,422 | $ | 6,056 | $ | 27,705 | $ | 21,435 | |||||
| Cost of goods sold | 4,362 | 4,296 | 3,988 | 17,282 | 14,883 | ||||||||||
| Gross margin | 3,912 | 3,126 | 2,068 | 10,423 | 6,552 | ||||||||||
| Research and development | 705 | 670 | 630 | 2,663 | 2,600 | ||||||||||
| Selling, general, and administrative | 236 | 230 | 231 | 894 | 881 | ||||||||||
| Restructure and asset impairments | 22 | 453 | 50 | 488 | 60 | ||||||||||
| Other operating (income) expense, net | (6 | ) | (26 | ) | — | 95 | 8 | ||||||||
| Operating income | 2,955 | 1,799 | 1,157 | 6,283 | 3,003 | ||||||||||
| Interest income | 9 | 8 | 13 | 37 | 114 | ||||||||||
| Interest expense | (47 | ) | (46 | ) | (50 | ) | (183 | ) | (194 | ) | |||||
| Other non-operating income (expense), net | 19 | 45 | 5 | 81 | 60 | ||||||||||
| 2,936 | 1,806 | 1,125 | 6,218 | 2,983 | |||||||||||
| Income tax (provision) benefit | (230 | ) | (65 | ) | (136 | ) | (394 | ) | (280 | ) | |||||
| Equity in net income (loss) of equity method investees | 14 | (6 | ) | 1 | 37 | 7 | |||||||||
| Net income | 2,720 | 1,735 | 990 | 5,861 | 2,710 | ||||||||||
| Net income attributable to noncontrolling interests | — | — | (2 | ) | — | (23 | ) | ||||||||
| Net income attributable to Micron | $ | 2,720 | $ | 1,735 | $ | 988 | $ | 5,861 | $ | 2,687 | |||||
| Earnings per share | |||||||||||||||
| Basic | $ | 2.42 | $ | 1.55 | $ | 0.89 | $ | 5.23 | $ | 2.42 | |||||
| Diluted | 2.39 | 1.52 | 0.87 | 5.14 | 2.37 | ||||||||||
| Number of shares used in per share calculations | |||||||||||||||
| Basic | 1,123 | 1,121 | 1,111 | 1,120 | 1,110 | ||||||||||
| Diluted | 1,138 | 1,145 | 1,131 | 1,141 | 1,131 | ||||||||||
MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
| September 2, | June 3, | September 3, | |||||||
| As of | 2021 | 2021 | 2020 | ||||||
| Assets | |||||||||
| Cash and equivalents | $ | 7,763 | $ | 7,759 | $ | 7,624 | |||
| Short-term investments | 870 | 590 | 518 | ||||||
| Receivables | 5,311 | 4,231 | 3,912 | ||||||
| Inventories | 4,487 | 4,537 | 5,373 | ||||||
| Assets held for sale | 974 | 966 | — | ||||||
| Other current assets | 502 | 478 | 538 | ||||||
| Total current assets | 19,907 | 18,561 | 17,965 | ||||||
| Long-term marketable investments | 1,765 | 1,399 | 1,048 | ||||||
| Property, plant, and equipment | 33,213 | 32,209 | 31,031 | ||||||
| Operating lease right-of-use assets | 551 | 558 | 584 | ||||||
| Intangible assets | 349 | 350 | 334 | ||||||
| Deferred tax assets | 782 | 822 | 707 | ||||||
| Goodwill | 1,228 | 1,228 | 1,228 | ||||||
| Other noncurrent assets | 1,054 | 816 | 781 | ||||||
| Total assets | $ | 58,849 | $ | 55,943 | $ | 53,678 | |||
| Liabilities and equity | |||||||||
| Accounts payable and accrued expenses | $ | 5,325 | $ | 4,427 | $ | 5,817 | |||
| Current debt | 155 | 297 | 270 | ||||||
| Other current liabilities | 944 | 738 | 548 | ||||||
| Total current liabilities | 6,424 | 5,462 | 6,635 | ||||||
| Long-term debt | 6,621 | 6,418 | 6,373 | ||||||
| Noncurrent operating lease liabilities | 504 | 513 | 533 | ||||||
| Noncurrent unearned government incentives | 808 | 722 | 643 | ||||||
| Other noncurrent liabilities | 559 | 569 | 498 | ||||||
| Total liabilities | 14,916 | 13,684 | 14,682 | ||||||
| Commitments and contingencies | |||||||||
| Shareholders’ equity | |||||||||
| Common stock | 122 | 120 | 119 | ||||||
| Additional capital | 9,453 | 9,285 | 8,917 | ||||||
| Retained earnings | 39,051 | 36,452 | 33,384 | ||||||
| Treasury stock | (4,695 | ) | (3,645 | ) | (3,495 | ) | |||
| Accumulated other comprehensive income (loss) | 2 | 47 | 71 | ||||||
| Total equity | 43,933 | 42,259 | 38,996 | ||||||
| Total liabilities and equity | $ | 58,849 | $ | 55,943 | $ | 53,678 | |||
MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
| For the year ended | September 2, 2021 |
September 3, 2020 |
||||
| Cash flows from operating activities | ||||||
| Net income | $ | 5,861 | $ | 2,710 | ||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||
| Depreciation expense and amortization of intangible assets | 6,214 | 5,650 | ||||
| Amortization of debt discount and other costs | 30 | 26 | ||||
| Noncash restructure and asset impairment | 454 | 40 | ||||
| Stock-based compensation | 378 | 328 | ||||
| (Gain) loss on debt prepayments, repurchases, and conversions | 1 | (40 | ) | |||
| Change in operating assets and liabilities | ||||||
| Receivables | (1,446 | ) | (723 | ) | ||
| Inventories | 866 | (435 | ) | |||
| Accounts payable and accrued expenses | 210 | 725 | ||||
| Deferred income taxes, net | (50 | ) | 79 | |||
| Other | (50 | ) | (54 | ) | ||
| Net cash provided by operating activities | 12,468 | 8,306 | ||||
| Cash flows from investing activities | ||||||
| Expenditures for property, plant, and equipment | (10,030 | ) | (8,223 | ) | ||
| Purchases of available-for-sale securities | (3,163 | ) | (1,857 | ) | ||
| Proceeds from maturities of available-for-sale securities | 1,250 | 814 | ||||
| Proceeds from sales of available-for-sale securities | 856 | 1,458 | ||||
| Proceeds from government incentives | 495 | 262 | ||||
| Other | 3 | (43 | ) | |||
| Net cash provided by (used for) investing activities | (10,589 | ) | (7,589 | ) | ||
| Cash flows from financing activities | ||||||
| Repayments of debt | (1,520 | ) | (4,366 | ) | ||
| Payments to acquire treasury stock | (1,294 | ) | (251 | ) | ||
| Payments on equipment purchase contracts | (295 | ) | (63 | ) | ||
| Acquisition of noncontrolling interest in IMFT | — | (744 | ) | |||
| Proceeds from issuance of debt | 1,188 | 5,000 | ||||
| Other | 140 | 107 | ||||
| Net cash provided by (used for) financing activities | (1,781 | ) | (317 | ) | ||
| Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash | 41 | 11 | ||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 139 | 411 | ||||
| Cash, cash equivalents, and restricted cash at beginning of period | 7,690 | 7,279 | ||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 7,829 | $ | 7,690 | ||
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 the year ended 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, $254 million of spare parts were presented in other current assets as of September 2, 2021, and we reclassified $256 million and $234 million of spare parts from inventories to other current assets in the accompanying balance sheets as of June 3, 2021 and September 3, 2020, respectively.
Lehi, Utah, Fab and 3D XPoint
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 XPoint™ 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 September 2, 2021, the significant balances of assets held for sale in connection with our Lehi facility were as follows:
| September 2, | ||||
| As of | 2021 | |||
| Property, plant, and equipment | $ | 1,334 | ||
| Other current assets | 50 | |||
| Impairment | (435 | ) | ||
| Lehi assets held for sale | $ | 949 |
As of September 2, 2021, we also had a $50 million finance lease obligation included in the current portion of long- term debt and $11 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)
| 4th Qtr. | 3rd Qtr. | 4th Qtr. | Year Ended |
||||||||||||
| September 2, | June 3, | September 3, | September 2, | September 3, | |||||||||||
| 2021 | 2021 | 2020 | 2021 | 2020 | |||||||||||
| GAAP gross margin | $ | 3,912 | $ | 3,126 | $ | 2,068 | $ | 10,423 | $ | 6,552 | |||||
| Stock-based compensation | 43 | 45 | 37 | 186 | 139 | ||||||||||
| Inventory accounting policy change to FIFO | — | — | — | 133 | — | ||||||||||
| Change in inventory cost absorption | — | — | — | 160 | — | ||||||||||
| 3D XPoint inventory write-down | — | — | — | 49 | — | ||||||||||
| Other | 9 | 14 | 6 | 36 | 27 | ||||||||||
| Non-GAAP gross margin | $ | 3,964 | $ | 3,185 | $ | 2,111 | $ | 10,987 | $ | 6,718 | |||||
| GAAP operating expenses | $ | 957 | $ | 1,327 | $ | 911 | $ | 4,140 | $ | 3,549 | |||||
| Stock-based compensation | (50 | ) | (53 | ) | (52 | ) | (209 | ) | (189 | ) | |||||
| Restructure and asset impairments | (22 | ) | (453 | ) | (50 | ) | (488 | ) | (60 | ) | |||||
| Patent license charges | — | — | — | (128 | ) | — | |||||||||
| Other | 6 | — | — | 5 | (1 | ) | |||||||||
| Non-GAAP operating expenses | $ | 891 | $ | 821 | $ | 809 | $ | 3,320 | $ | 3,299 | |||||
| GAAP operating income | $ | 2,955 | $ | 1,799 | $ | 1,157 | $ | 6,283 | $ | 3,003 | |||||
| Stock-based compensation | 93 | 98 | 89 | 395 | 328 | ||||||||||
| Inventory accounting policy change to FIFO | — | — | — | 133 | — | ||||||||||
| Change in inventory cost absorption | — | — | — | 160 | — | ||||||||||
| 3D XPoint inventory write-down | — | — | — | 49 | — | ||||||||||
| Restructure and asset impairments | 22 | 453 | 50 | 488 | 60 | ||||||||||
| Patent license charges | — | — | — | 128 | — | ||||||||||
| Other | 3 | 14 | 6 | 31 | 28 | ||||||||||
| Non-GAAP operating income | $ | 3,073 | $ | 2,364 | $ | 1,302 | $ | 7,667 | $ | 3,419 | |||||
| GAAP net income attributable to Micron | $ | 2,720 | $ | 1,735 | $ | 988 | $ | 5,861 | $ | 2,687 | |||||
| Stock-based compensation | 93 | 98 | 89 | 395 | 328 | ||||||||||
| Inventory accounting policy change to FIFO | — | — | — | 133 | — | ||||||||||
| Change in inventory cost absorption | — | — | — | 160 | — | ||||||||||
| 3D XPoint inventory write-down | — | — | — | 49 | — | ||||||||||
| Restructure and asset impairments | 22 | 453 | 50 | 488 | 60 | ||||||||||
| Patent license charges | — | — | — | 128 | — | ||||||||||
| Amortization of debt discount and other costs | 8 | 7 | 6 | 30 | 26 | ||||||||||
| (Gain) loss on debt repurchases and conversions | — | 1 | — | 1 | (40 | ) | |||||||||
| Other | 3 | 14 | 6 | 31 | 28 | ||||||||||
| Estimated tax effects of above and other tax adjustments | (68 | ) | (135 | ) | 90 | (300 | ) | 146 | |||||||
| Non-GAAP net income attributable to Micron | $ | 2,778 | $ | 2,173 | $ | 1,229 | $ | 6,976 | $ | 3,235 | |||||
|
GAAP weighted-average common shares |
|||||||||||||||
| outstanding – Diluted | 1,138 | 1,145 | 1,131 | 1,141 | 1,131 | ||||||||||
| Adjustment for stock-based compensation and capped | |||||||||||||||
| calls | 9 | 9 | 11 | 10 | 10 | ||||||||||
| Non-GAAP weighted-average common shares | |||||||||||||||
| outstanding – Diluted | 1,147 | 1,154 | 1,142 | 1,151 | 1,141 | ||||||||||
| GAAP diluted earnings per share | $ | 2.39 | $ | 1.52 | $ | 0.87 | $ | 5.14 | $ | 2.37 |
| Effects of the above adjustments | 0.03 | 0.36 | 0.21 | 0.92 | 0.46 | |||||
| Non-GAAP diluted earnings per share | $ | 2.42 | $ | 1.88 | $ | 1.08 | $ | 6.06 | $ | 2.83 |
RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
| 4th Qtr. | 3rd Qtr. | 4th Qtr. | Year Ended |
||||||||
| September 2, | June 3, | September 3, | September 2, | September 3, | |||||||
| 2021 | 2021 | 2020 | 2021 | 2020 | |||||||
| GAAP net cash provided by operating activities | $ | 3,884 | $ | 3,560 | $ | 2,271 | $ | 12,468 | $ | 8,306 | |
| Investments in capital expenditures, net | |||||||||||
| Expenditures for property, plant, and equipment, net(1) | (2,011 | ) | (2,185 | ) | (2,268 | ) | (9,922 | ) | (8,154 | ) | |
| Payments on equipment purchase contracts | (156 | ) | (16 | ) | (14 | ) | (295 | ) | (63 | ) | |
| Amounts funded by partners | 160 | 159 | 122 | 502 | 272 | ||||||
| Adjusted free cash flow | $ | 1,877 | $ | 1,518 | $ | 111 | $ | 2,753 | $ | 361 | |
(1) Expenditures for property, plant, and equipment, net include proceeds from sales of property, plant, and equipment of $4 million for the fourth quarter of 2021, $74 million for the third quarter of 2021, $12 million for the fourth quarter of 2020, $108 million for the full year of 2021, and $69 million for the full year of 2020.
| September 2, | June 3, | September 3, | ||||||||||||
| As of | 2021 | 2021 | 2020 | |||||||||||
| Cash and short-term investments | $ | 8,633 | $ | 8,349 | $ | 8,142 | ||||||||
| Current and noncurrent restricted cash | 66 | 67 | 66 | |||||||||||
| Long-term marketable investments | 1,765 | 1,399 | 1,048 | |||||||||||
| Current and long-term debt | (6,776 | ) | (6,715 | ) | (6,643 | ) | ||||||||
| Net cash | $ | 3,688 | $ | 3,100 | $ | 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
| FQ1-22 | GAAP Outlook | Adjustments | Non-GAAP Outlook | ||||
| Revenue | $7.65 billion ± $200 million | — | $7.65 billion ± $200 million | ||||
| Gross margin | 46.0% ± 1% | 1% A | 47.0% ± 1% | ||||
| Operating expenses | $986 million ± $25 million | $71 million B | $915 million ± $25 million | ||||
| Diluted earnings per share(1) | $2.00 ± $0.10 | $0.10 A, B, C | $2.10 ± $0.10 | ||||
| Non-GAAP Adjustments (in millions) |
|||||||
| A Stock-based compensation – cost of goods sold | $ | 43 | |||||
| A Other – cost of goods sold | 5 | ||||||
| B Stock-based compensation – research and development | 39 | ||||||
| B Stock-based compensation – sales, general, and administrative | 32 | ||||||
| C Tax effects of the above items and other tax adjustments | (4 | ) | |||||
| $ | 115 | ||||||
(1) GAAP earnings per share based on approximately 1.13 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, 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
IBM, Government of Canada, Government of Quebec Sign Agreements to Strengthen Canada’s Semiconductor Industry
Up to $187M CAD to be invested to progress expansion of chip packaging capacity and capabilities and to strengthen R&D at IBM Canada’s Bromont plant
BROMONT, QC, April 26, 2024 /PRNewswire/ — IBM (NYSE: IBM), the Government of Canada, and the Government of Quebec today announced agreements that will strengthen Canada’s semiconductor industry, and further develop the assembly, testing and packaging (ATP) capabilities for semiconductor modules to be used across a wide range of applications including telecommunications, high performance computing, automotive, aerospace & defence, computer networks, and generative AI, at IBM Canada’s plant in Bromont, Quebec. The agreements reflect a combined investment valued at approximately $187M CAD.
“Today’s announcement is a massive win for Canada and our dynamic tech sector. It will create high-paying jobs, invest in innovation, strengthen supply chains, and help make sure the most advanced technologies are Canadian-made. Semiconductors power the world, and we’re putting Canada at the forefront of that opportunity,” said the Right Honourable Justin Trudeau, Prime Minister of Canada
In addition to the advancement of packaging capabilities, IBM will be conducting R&D to develop methods for scalable manufacturing and other advanced assembly processes to support the packaging of different chip technologies, to further Canada’s role in the North American semiconductor supply chain and expand and anchor Canada’s capabilities in advanced packaging.
The agreements also allow for collaborations with small and medium-sized Canadian-based enterprises with the intent of fostering the development of a semiconductor ecosystem, now and into the future.
“IBM has long been a leader in semiconductor research and development, pioneering breakthroughs to meet tomorrow’s challenges. With the demand for compute surging in the age of AI, advanced packaging and chiplet technology is becoming critical for the acceleration of AI workloads,” said Darío Gil, IBM Senior Vice President and Director of Research. “As one of the largest chip assembly and testing facilities in North America, IBM’s Bromont facility will play a central role in this future. We are proud to be working with the governments of Canada and Quebec toward those goals and to build a stronger and more balanced semiconductor ecosystem in North America and beyond.”
IBM Canada’s Bromont plant is one of North America’s largest chip assembly and testing facilities, having operated in the region for 52 years. Today, the facility transforms advanced semiconductor components into state-of-the-art microelectronic solutions, playing a key role in IBM’s semiconductor R&D leadership alongside IBM’s facilities at the Albany NanoTech Complex and throughout New York’s Hudson Valley. These agreements will help to further establish a corridor of semiconductor innovation from New York to Bromont.
“Advanced packaging is a crucial component of the semiconductor industry, and IBM Canada’s Bromont plant has led the world in this process for decades,” said Deb Pimentel, president of IBM Canada. “Building upon IBM’s 107-year legacy of technology innovation and R&D in Canada, the Canadian semiconductor industry will now become even stronger, allowing for robust supply chains and giving Canadians steady access to even more innovative technologies and products. This announcement represents just one more example of IBM’s leadership and commitment to the country’s technology and business landscape.”
Chip packaging, the process of connecting integrated circuits on a chip or circuit board, has become more complex as electronic devices have shrunk and the components of chips themselves get smaller and smaller. IBM announced the world’s first 2 nanometer chip technology in 2021 and, as the semiconductor industry moves towards new methods of chip construction, advances in packaging will grow in importance.
“Semiconductors are part of our everyday life. They are in our phones, our cars, and our appliances. Through this investment, we are supporting Canadian innovators, creating good jobs, and solidifying Canada’s semiconductor industry to build a stronger economy. Canada is set to play a larger role in the global semiconductor industry thanks to projects like the one we are announcing today. Because, when we invest in semiconductor and quantum technologies, we invest in economic security.” — The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry
“This investment by IBM in Bromont will ensure that Quebec continues to stand out in the field of microelectronics. An increase in production capacity will solidify Quebec’s position in the strategic microelectronics sector in North America.” — The Honourable Pierre Fitzgibbon, Minister of Economy, Innovation and Energy, Minister responsible for Regional Economic Development and Minister responsible for the Metropolis and the Montreal region
About IBMIBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. More than 4,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in semiconductors, AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service. Visit www.ibm.com for more information.
Media ContactLorraine BaldwinIBM [email protected]
Willa HahnIBM [email protected]
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View original content:https://www.prnewswire.co.uk/news-releases/ibm-government-of-canada-government-of-quebec-sign-agreements-to-strengthen-canadas-semiconductor-industry-302128212.html
Artificial Intelligence
HITACHI ACQUIRES MA MICRO AUTOMATION OF GERMANY IN EFFORT TO ACCELERATE GLOBAL EXPANSION OF ROBOTIC SI BUSINESS IN THE MEDICAL AND OTHER FIELDS
HOLLAND, Mich., April 26, 2024 /PRNewswire/ — Hitachi Ltd. (TSE: 6501, “Hitachi”) has signed a stock purchase agreement on April 26 to acquire all shares of MA micro automation GmbH (“MA micro automation”, headquartered in St. Leon-Rot, Germany) from MAX Management GmbH (a subsidiary of MAX Automation SE). MA micro automation is a leading provider of robotic and automation technology (robotic SI) including high-speed linear handling systems, high-precision assembly lines, and high-speed vision inspection technology for Europe, North America, and Southeast Asia, for EUR 71.5M million. The transaction is expected to close in the second half of 2024, pending completion of the customary regulatory filings. After the acquisition is completed, MA micro automation will join JR Automation Technologies, LLC (“JR Automation”), a market leader in providing advanced automation solutions and digital technologies in the robotic system integration business for North America, Europe, and Southeast Asia as a continued effort to expand the company’s global presence.
MA micro automation is a technology leader for automation solutions within micro-assembly. Through its state-of-the-art proprietary high-speed and high-precision automation know-how, combined with unique optical image inspection capabilities, MA micro automation serves high-growth med-tech automation end-markets, covering the production, assembly, and testing medical and optical components including contact lenses, IVD and diabetes diagnostics consumables, and injection molding for medical use. The company was established in 2003 through a carve-out from Siemens*1 and since 2013 has been part of the MAX Automation group.
JR Automation is a leading provider of intelligent automated manufacturing technology solutions, serving customers across the globe in a variety of industries including automotive, life sciences, e-mobility, consumer and industrial products. With over 20 locations between North America, Europe, and Southeast Asia, the leading integrator offers nearly 2 million square feet (185,806 sq. m) of available build and engineering floorspace. This acquisition allows JR Automation to further grow and strengthen both the company’s geographical footprint and their continued commitment on expanding support capabilities within the European region and medical market vertical.
“MA micro automation provides engineering, build and support expertise with established capabilities in complex vision applications, high-speed and high-precision automation technologies. When integrated with JR Automation’s uniform global process and digital technologies, this partnership will further enhance our ability to deliver added value and support to all of our customers worldwide and continue to grow our capabilities in the medical market,” says Dave DeGraaf, CEO of JR Automation. “As we integrate this new dimension, impressive talents and abilities of the MA micro automation team we further enhance our ability to serve our customers, creating a more robust and globally balanced offering.”
With this acquisition, Hitachi aims to further enhance its ability to provide a “Total Seamless Solution*2” to connect manufacturer’s factory floors seamlessly and digitally with their front office data, allowing them to achieve total optimization and bringing Industry 4.0 to life. This “Total Seamless Solution” strategy links organizations’ operational activities such as engineering, supply chain, and purchasing to the plant floor and allows for real time, data-driven decision-making that improves the overall business value for customers.
Kazunobu Morita, Vice President and Executive Officer, CEO of Industrial Digital Business Unit, Hitachi, Ltd. says, “We are very pleased to welcome MA micro automation to the Hitachi Group. The team is based in Europe, providing robotic SI to global medical device manufacturing customers with its high technological capabilities and will join forces with JR Automation and Hitachi Automation to strengthen our global competitiveness. Hitachi aims to enhance its ability to provide value to customers and grow alongside them by leveraging its strengths in both OT, IT, including robotic SI, and “Total Seamless Solution” through Lumada*3’s customer co-creation framework.”
Joachim Hardt, CEO MA micro automation GmbH says, “Following the successful establishment and growth of MA micro automation within the attractive automation market for medical technology products, we are now opening a new chapter. Our partnership with Hitachi will not only strengthen our global competitive position, but we will also benefit from joint technological synergies and a global market presence. We look forward to a synergistic partnership with Hitachi and JR Automation.”
Outline of MA micro automation
Name
MA micro automation GmbH
Head Office
St. Leon-Rot, Germany
Representative
Joachim Hardt (CEO)
Outline of Business
Automation solutions within micro-assembly
Total no. of Employees:
Approx. 200 (As of April 2024)
Founded
2003
Revenues (2023)
€ 46.5 million
Website
*1
“Siemens” is a registered trademark or trademark of Siemens Trademark GmbH & Co. KG in the U.S. and other countries.
*2
“Total Seamless Solution” is a registered trademark of Hitachi, Ltd. in the U.S. and Japan.
*3
Lumada: A collective term for solutions, services and technologies based on Hitachi’s advanced digital technologies for creating value from customers’ data accelerating digital innovation. https://www.hitachi.com/products/it/lumada/global/en/index.html
About JR AutomationEstablished in 1980, JR Automation is a leading provider of intelligent automated manufacturing technology solutions that solve customers’ key operational and productivity challenges. JR Automation serves customers across the globe in a variety of industries, including automotive, life sciences, aerospace, and more.
In 2019, JR Automation was acquired by Hitachi, Ltd. In a strategic effort towards offering a seamless connection between the physical and cyber space for industrial manufacturers and distributers worldwide. With this partnership, JR Automation provides customers a unique, single-source solution for complete integration of their physical assets and data information, offering greater speed, flexibility, and efficiencies towards achieving their Industry 4.0 visions. JR Automation employs over 2,000 people at 21 manufacturing facilities in North America, Europe, and Asia. For more information, please visit www.jrautomation.com.
About Hitachi, Ltd.Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers’ and society’s challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the 3 business sectors of “Digital Systems & Services” – supporting our customers’ digital transformation; “Green Energy & Mobility” – contributing to a decarbonized society through energy and railway systems, and “Connective Industries” – connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company’s revenues as 3 sectors for fiscal year 2023 (ended March 31, 2024) totaled 8,564.3 billion yen, with 573 consolidated subsidiaries and approximately 270,000 employees worldwide. For more information on Hitachi, please visit the company’s website at https://www.hitachi.com.
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Artificial Intelligence
$10 million Artificial Intelligence Mathematical Olympiad Prize appoints further advisory committee members
D. Sculley, Kevin Buzzard, Leo de Moura, Lester Mackey and Peter J. Liu appointed to the advisory committee for the Artificial Intelligence Mathematical Olympiad Prize.
LONDON, April 26, 2024 /PRNewswire/ — XTX Markets’ newly created Artificial Intelligence Mathematical Olympiad Prize (‘AIMO Prize’) is a $10mn challenge fund designed to spur the creation of a publicly shared AI model capable of winning a gold medal in the International Mathematical Olympiad (IMO).
XTX Markets is delighted to announce the appointment of five further advisory committee members. This group brings great expertise in machine learning, including D. Sculley, the CEO of Kaggle; Lester Mackey, a Principal Researcher at Microsoft Research and a Macarthur Fellow; and Peter J. Liu, a research scientist at Google DeepMind.
Prolific mathematicians Kevin Buzzard, who achieved a perfect score in the International Mathematical Olympiad, and Leo De Moura who is the Chief Architect for Lean, the automated reasoning tool, also join the advisory group.
They join the existing advisory committee members Terence Tao and Timothy Gowers, both winners of the Fields Medal, as well as Dan Roberts, Geoff Smith and Po-Shen Loh.
The AIMO Advisory Committee will support the development of the AIMO Prize, including advising on appropriate protocols and technical aspects, and designing the various competitions and prizes.
Simon Coyle, Head of Philanthropy at XTX Markets, commented:
“We are thrilled to complete the AIMO Advisory Committee with the appointments of D., Kevin, Leo, Lester and Peter. Together, they have enormous experience in machine learning and automated reasoning and are already bringing expertise and wisdom to the AIMO Prize. We look forward to announcing the winners of the AIMO’s first Progress Prize soon, and then publicly sharing the AI models to support the open and collaborative development of AI.”
Further information on the AIMO Prize
There will be a grand prize of $5mn for the first publicly shared AI model to enter an AIMO approved competition and perform at a standard equivalent to a gold medal in the IMO. There will also be a series of progress prizes, totalling up to $5mn, for publicly shared AI models that achieve key milestones towards the grand prize.
The first AIMO approved competition opened to participants in April 2024 on the Kaggle competition platform. The first progress prize focuses on problems pitched at junior and high-school level maths competitions. There is a total prize pot of $1.048m for the first progress prize, of which at least $254k will be awarded in July 2024, There will be a presentation of progress held in Bath, England in July 2024, as part of the 65th IMO.
For more information on the AIMO Prize visit: https://aimoprize.com/ or the competition page on Kaggle: https://www.kaggle.com/competitions/ai-mathematical-olympiad-prize/
Advisory Committee member profiles:
D. Sculley
D. is the CEO at Kaggle. Prior to joining Kaggle, he was a director at Google Brain, leading research teams working on robust, responsible, reliable and efficient ML and AI. In his career in ML, he has worked on nearly every aspect of machine learning, and has led both product and research teams including those on some of the most challenging business problems. Some of his well-known work involves ML technical debt, ML education, ML robustness, production-critical ML, and ML for scientific applications such as protein design.
Kevin Buzzard
Kevin a professor of pure mathematics at Imperial College London, specialising in algebraic number theory. As well as his research and teaching, he has a wide range of interests, including being Deputy Head of Pure Mathematics, Co-Director of a CDT and the department’s outreach champion. He is currently focusing on formal proof verification, including being an active participant in the Lean community. From October 2024, he will be leading a project to formalise a 21st century proof of Fermat’s Last Theorem. Before joining Imperial, some 20 years ago, he was a Junior Research Fellow at the University of Cambridge, where he had previously been named ‘Senior Wrangler’ (the highest scoring undergraduate mathematician). He was also a participant in the International Mathematical Olympiad, winning gold with a perfect score in 1987. He has been a visitor at the IAS in Princeton, a visiting lecturer at Harvard, has won several prizes both for research and teaching, and has given lectures all over the world.
Leo de Moura
Leo is a Senior Principal Applied Scientist in the Automated Reasoning Group at AWS. In his spare time, he dedicates himself to serving as the Chief Architect of the Lean FRO, a non-profit organization that he proudly co-founded alongside Sebastian Ullrich. He is also honoured to hold a position on the Board of Directors at the Lean FRO, where he actively contributes to its growth and development. Before joining AWS in 2023, he was a Senior Principal Researcher in the RiSE group at Microsoft Research, where he worked for 17 years starting in 2006. Prior to that, he worked as a Computer Scientist at SRI International. His research areas are automated reasoning, theorem proving, decision procedures, SAT and SMT. He is the main architect of several automated reasoning tools: Lean, Z3, Yices 1.0 and SAL. Leo’s work in automated reasoning has been acknowledged with a series of prestigious awards, including the CAV, Haifa, and Herbrand awards, as well as the Programming Languages Software Award by the ACM. Leo’s work has also been reported in the New York Times and many popular science magazines such as Wired, Quanta, and Nature News.
Lester Mackey
Lester Mackey is a Principal Researcher at Microsoft Research, where he develops machine learning methods, models, and theory for large-scale learning tasks driven by applications from climate forecasting, healthcare, and the social good. Lester moved to Microsoft from Stanford University, where he was an assistant professor of Statistics and, by courtesy, of Computer Science. He earned his PhD in Computer Science and MA in Statistics from UC Berkeley and his BSE in Computer Science from Princeton University. He co-organized the second place team in the Netflix Prize competition for collaborative filtering; won the Prize4Life ALS disease progression prediction challenge; won prizes for temperature and precipitation forecasting in the yearlong real-time Subseasonal Climate Forecast Rodeo; and received best paper, outstanding paper, and best student paper awards from the ACM Conference on Programming Language Design and Implementation, the Conference on Neural Information Processing Systems, and the International Conference on Machine Learning. He is a 2023 MacArthur Fellow, a Fellow of the Institute of Mathematical Statistics, an elected member of the COPSS Leadership Academy, and the recipient of the 2023 Ethel Newbold Prize.
Peter J. Liu
Peter J. Liu is a Research Scientist at Google DeepMind in the San Francisco Bay area, doing machine learning research with a specialisation in language models since 2015 starting in the Google Brain team. He has published and served as area chair in top machine learning and NLP conferences such as ICLR, ICML, NEURIPS, ACL and EMNLP. He also has extensive production experience, including launching the first deep learning model for Gmail Anti-Spam, and using neural network models to detect financial fraud for top banks. He has degrees in Mathematics and Computer Science from the University of Toronto.
About XTX Markets:
XTX Markets is a leading financial technology firm which partners with counterparties, exchanges and e-trading venues globally to provide liquidity in the Equity, FX, Fixed Income and Commodity markets. XTX has over 200 employees based in London, Paris, New York, Mumbai, Yerevan and Singapore. XTX is consistently a top 5 liquidity provider globally in FX (Euromoney 2018-present) and is also the largest European equities (systematic internaliser) liquidity provider (Rosenblatt FY: 2020-2023).
The company’s corporate philanthropy focuses on STEM education and maximum impact giving (alongside an employee matching programme). Since 2017, XTX has donated over £100mn to charities and good causes, establishing it as a major donor in the UK and globally.
In a changing world XTX Markets is at the forefront of making financial markets fairer and more efficient for all.
View original content:https://www.prnewswire.co.uk/news-releases/10-million-artificial-intelligence-mathematical-olympiad-prize-appoints-further-advisory-committee-members-302128542.html
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