Micron Technology, Inc., Reports Results for the Second Quarter of Fiscal 2008
Micron Technology, Inc., Reports Results for the Second Quarter of Fiscal 2008 Wednesday April 2, 4:09 pm ET
BOISE, Idaho--(BUSINESS WIRE)--Micron Technology, Inc., (NYSE:MU - News) today announced results of operations for the company’s second quarter and first six months of fiscal 2008, which ended February 28, 2008. Despite continued significant declines in average sales prices for the company’s primary products, the company reported net sales of $1.4 billion for the second quarter of fiscal 2008 compared to net sales of $1.5 billion for the previous quarter. The company also generated cash flow from operations during the second quarter of fiscal 2008 of $282 million and ended the quarter with cash and investments of $1.9 billion. As a result of the company’s current market capitalization being below book value, the company was required under FASB Statement No. 142, “Goodwill and Other Intangible Assets,” to record a non-cash charge of $463 million in the second quarter of fiscal 2008 to write off all the carrying amount of goodwill previously recognized in the company’s memory segment. The goodwill write-off does not affect the company’s day-to-day business operations, cash balance or competitive position. Reflecting the goodwill charge, the company reported a net loss for the second quarter of $1.01 per diluted share. On a non-GAAP basis, without the effect of the charge, the company’s net loss for the second quarter would have been $0.41 per diluted share or $314 million. These results compare to a net loss of $262 million, or $0.34 per diluted share, for the first quarter of fiscal 2008.
The company’s net sales declined 11 percent in the second quarter of fiscal 2008 compared to the immediately preceding quarter primarily due to lower selling prices partially offset by increased production of memory products. Average selling prices for the company’s DRAM and NAND Flash memory products decreased 15 percent and 30 percent, respectively, in the second quarter compared to the first quarter. Comparing the second quarter to the same quarter of the previous fiscal year, average selling prices for the company’s DRAM and NAND Flash memory products decreased approximately 60 percent and 70 percent, respectively.
The company achieved second quarter reductions in cost of goods sold per megabit of approximately 15 percent and 25 percent for DRAM and NAND Flash memory products, respectively, compared to the first quarter of fiscal 2008. These reductions resulted from continuing advancements in our industry-leading process technology and increased output from our 300mm operations.
The company had capital expenditures of $693 million during the second quarter bringing the expenditures for the first six months to $1.6 billion. The company estimates capital expenditures aggregating between $2.5 billion and $3 billion for the 2008 fiscal year. In the third quarter of fiscal 2008, TECH Semiconductor, a consolidated joint venture, entered into a $600 million credit facility to refinance its existing debt of $240 million and to finance future capital expenditures.