Micron: Fiscal 1Q13 Financial Results

Micron Technology, Inc. announced results of operations for its first quarter of fiscal 2013, which ended November 29, 2012.

For the first quarter, the company had a net loss attributable to Micron shareholders of $275 million, or $0.27 per diluted share, on net sales of $1.8 billion. The results for the first quarter of fiscal 2013 compare to a net loss of $243 million, or $0.24 per diluted share, on net sales of $2.0 billion for the fourth quarter of fiscal 2012, and a net loss of $187 million, or $0.19 per diluted share, on net sales of $2.1 billion for the first quarter of fiscal 2012.

Revenues from sales of NAND flash products were 4% lower in the first quarter of fiscal 2013 compared to the fourth quarter of fiscal 2012, due to a 9% decrease in sales volume, partially offset by a 5% increase in average selling prices.

Trade NAND flash sales volume in the first quarter of fiscal 2013 decreased compared to the fourth quarter of fiscal 2012 primarily as a result of lower production of NAND flash products.

Revenues from sales of DRAM products in the first quarter of fiscal 2013 were 9% lower compared to the fourth quarter of fiscal 2012 primarily due to an 11% decrease in average selling prices. Sales of NOR flash products were relatively unchanged for the first quarter of fiscal 2013 compared to the fourth quarter of fiscal 2012.

The company’s consolidated gross margin of 12% in the first quarter of fiscal 2013 was up slightly from 11% in the fourth quarter of fiscal 2012. Improvements in margin from sales of NAND flash and NOR flash products were offset by slight declines in margins from sales of DRAM products.

Cash flows from operations for the first quarter of fiscal 2013 were $236 million. During the first quarter of fiscal 2013, the company invested $538 million in capital expenditures and ended the quarter with cash and investments of $2.8 billion.

During the first quarter of fiscal 2013, the company entered into two credit facilities. The first was a revolving credit facility providing for borrowings of up to $255 million.  Amounts drawn under the facility would be collateralized by certain accounts receivable. As of the end of the first quarter of fiscal 2013, no amounts had been drawn under the facility. The second was a term note providing for borrowings of up to $214 million. Amounts drawn under the facility are collateralized by semiconductor production equipment. As of the end of the first quarter of fiscal 2013, the balance outstanding under the note was $173 million.

To read the earnings call transcript