Micron Expertise, Inc.AI demand drives 50% sequential information heart income progress and document excessive information heart income mixBOISE, Idaho, June 26, 2024 (GLOBE NEWSWIRE) — Micron Expertise, Inc. (Nasdaq: MU) at this time introduced outcomes for its third quarter of fiscal 2024, which ended Could 30, 2024.Fiscal Q3 2024 highlightsGAAP internet earnings of $332 million, or $0.30 per diluted shareNon-GAAP internet earnings of $702 million, or $0.62 per diluted shareOperating money circulate of $2.48 billion versus $1.22 billion for the prior quarter and $24 million for a similar interval final yr“Sturdy AI demand and robust execution enabled Micron to drive 17% sequential income progress, exceeding our steering vary in fiscal Q3,” mentioned Sanjay Mehrotra, President and CEO of Micron Expertise. “We’re gaining share in high-margin merchandise like Excessive Bandwidth Reminiscence (HBM), and our information heart SSD income hit a document excessive, demonstrating the energy of our AI product portfolio throughout DRAM and NAND. We’re excited in regards to the increasing AI-driven alternatives forward, and are effectively positioned to ship a considerable income document in fiscal 2025.”Quarterly Monetary Outcomes(in tens of millions, besides per share quantities)GAAP(1) Non-GAAP(2)FQ3-24FQ2-24FQ3-23 FQ3-24FQ2-24FQ3-23 Income$6,811 $5,824 $3,752 $6,811 $5,824 $3,752 Gross margin 1,832 1,079 (668) 1,917 1,163 (603)% of income 26.9% 18.5% (17.8%) 28.1% 20.0% (16.1%)Working bills 1,113 888 1,093 976 959 866 Working earnings (loss) 719 191 (1,761) 941 204 (1,469)% of income 10.6% 3.3% (46.9%) 13.8% 3.5% (39.2%)Web earnings (loss) 332 793 (1,896) 702 476 (1,565)Diluted earnings (loss) per share 0.30 0.71 (1.73) 0.62 0.42 (1.43) Investments in capital expenditures, internet(2) have been $2.06 billion for the third quarter of 2024, which resulted in adjusted free money flows(2) of $425 million. Micron ended the third quarter of 2024 with money, marketable investments, and restricted money of $9.22 billion. On June 26, 2024, Micron’s Board of Administrators declared a quarterly dividend of $0.115 per share, payable in money on July 23, 2024, to shareholders of document as of the shut of enterprise on July 8, 2024.Story continuesBusiness OutlookThe following desk presents Micron’s steering for the fourth quarter of 2024:FQ4-24GAAP(1) OutlookNon-GAAP(2) Outlook Income$7.60 billion ± $200 million$7.60 billion ± $200 millionGross margin33.5% ± 1.0percent34.5% ± 1.0percentOperating bills$1.19 billion ± $15 million$1.06 billion ± $15 millionDiluted earnings per share$0.61 ± $0.08$1.08 ± $0.08 Additional data concerning Micron’s enterprise outlook is included within the ready remarks and slides, which have been posted at traders.micron.com.Investor WebcastMicron will host a convention name on Wednesday, June 26, 2024 at 2:30 p.m. Mountain Time to debate its third quarter monetary outcomes and supply forward-looking steering for its fourth quarter. A reside webcast of the decision shall be out there on-line at traders.micron.com. A webcast replay shall be out there for one yr after the decision. For Investor Relations and different firm updates, observe us on X @MicronTech.About Micron Expertise, Inc.We’re an business chief in progressive reminiscence and storage options remodeling how the world makes use of data to counterpoint life for all. With a relentless give attention to our prospects, know-how management, and manufacturing and operational excellence, Micron delivers a wealthy portfolio of high-performance DRAM, NAND, and NOR reminiscence and storage merchandise by our Micron® and Essential® manufacturers. Day by day, the improvements that our individuals create gas the information financial system, enabling advances in synthetic intelligence (AI) and compute-intensive purposes that unleash alternatives — from the information heart to the clever edge and throughout the shopper and cell person expertise. To study extra about Micron Expertise, Inc. (Nasdaq: MU), go to micron.com.© 2024 Micron Expertise, Inc. All rights reserved. Micron, the Micron brand, and all different Micron logos are the property of Micron Expertise, Inc. All different logos are the property of their respective homeowners.Ahead-Trying StatementsThis press launch accommodates forward-looking statements concerning our business, our strategic place, know-how tendencies and developments together with synthetic intelligence, market demand, and our monetary and working outcomes, together with our steering for the fourth quarter of 2024. These forward-looking statements are topic to a variety of dangers and uncertainties that might trigger precise outcomes to vary materially. Please discuss with the paperwork we file with the Securities and Change Fee, together with our most up-to-date Kind 10-Ok and Kind 10-Q. These paperwork comprise and establish vital components that might trigger our precise outcomes to vary materially from these contained in these forward-looking statements. These sure components could be discovered at traders.micron.com/risk-factor. Though we imagine that the expectations mirrored within the forward-looking statements are affordable, we can not assure future outcomes, ranges of exercise, efficiency, or achievements. We’re underneath no responsibility to replace any of the forward-looking statements to evolve these statements to precise outcomes.(1)GAAP represents U.S. Usually Accepted Accounting Rules.(2)Non-GAAP represents GAAP excluding the affect of sure actions, which administration excludes in analyzing our working outcomes and understanding tendencies in our earnings, adjusted free money circulate, and enterprise outlook. Additional data concerning Micron’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included inside this press launch.MICRON TECHNOLOGY, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(In tens of millions, besides per share quantities)(Unaudited) third Qtr.2nd Qtr.third Qtr.9 months ended Could 30,2024February 29,2024June 1,2023May 30,2024June 1,2023 Income$6,811 $5,824 $3,752 $17,361 $11,530 Value of products bought 4,979 4,745 4,420 14,485 12,511 Gross margin 1,832 1,079 (668) 2,876 (981) Analysis and improvement 850 832 758 2,527 2,395 Promoting, normal, and administrative 291 280 219 834 701 Restructure and asset impairments — — 68 — 167 Different working (earnings) expense, internet (28) (224) 48 (267) 29 Working earnings (loss) 719 191 (1,761) (218) (4,273) Curiosity earnings 136 130 127 398 334 Curiosity expense (150) (144) (119) (426) (259)Different non-operating earnings (expense), internet 10 (7) — (24) (2) 715 170 (1,753) (270) (4,200) Revenue tax (provision) profit (377) 622 (139) 172 (201)Fairness in internet earnings (loss) of fairness technique investees (6) 1 (4) (11) (2)Web earnings (loss)$332 $793 $(1,896)$(109)$(4,403) Earnings (loss) per share Fundamental$0.30 $0.72 $(1.73)$(0.10)$(4.03)Diluted 0.30 0.71 (1.73) (0.10) (4.03) Variety of shares utilized in per share calculations Fundamental 1,107 1,104 1,094 1,104 1,092 Diluted 1,123 1,114 1,094 1,104 1,092 MICRON TECHNOLOGY, INC.CONSOLIDATED BALANCE SHEETS(In tens of millions)(Unaudited)As ofMay 30,2024February 29,2024August 31,2023 Property Money and equivalents$7,594 $8,016 $8,577 Quick-term investments 785 990 1,017 Receivables 5,131 4,296 2,443 Inventories 8,512 8,443 8,387 Different present belongings 1,297 1,690 820 Whole present belongings 23,319 23,435 21,244 Lengthy-term marketable investments 775 627 844 Property, plant, and tools 37,926 37,587 37,928 Working lease right-of-use belongings 660 642 666 Intangible belongings 413 414 404 Deferred tax belongings 597 664 756 Goodwill 1,150 1,150 1,150 Different noncurrent belongings 1,415 1,199 1,262 Whole belongings$66,255 $65,718 $64,254 Liabilities and fairness Accounts payable and accrued bills$5,145 $4,680 $3,958 Present debt 398 344 278 Different present liabilities 1,297 1,235 529 Whole present liabilities 6,840 6,259 4,765 Lengthy-term debt 12,860 13,378 13,052 Noncurrent working lease liabilities 609 593 603 Noncurrent unearned authorities incentives 672 662 727 Different noncurrent liabilities 1,049 956 987 Whole liabilities 22,030 21,848 20,134 Commitments and contingencies Shareholders’ fairness Widespread inventory 125 125 124 Further capital 11,794 11,564 11,036 Retained earnings 40,169 39,997 40,824 Treasury inventory (7,552) (7,552) (7,552)Amassed different complete earnings (loss) (311) (264) (312)Whole fairness 44,225 43,870 44,120 Whole liabilities and fairness$66,255 $65,718 $64,254 MICRON TECHNOLOGY, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(In tens of millions)(Unaudited)9 months endedMay 30,2024June 1,2023 Money flows from working actions Web earnings (loss)$(109)$(4,403)Changes to reconcile internet earnings (loss) to internet money supplied by working actions: Depreciation expense and amortization of intangible belongings 5,794 5,819 Inventory-based compensation 620 448 Provision to write-down inventories to internet realizable worth — 1,831 Change in working belongings and liabilities: Receivables (2,562) 2,728 Inventories (125) (3,406)Different present belongings (435) (35)Accounts payable and accrued bills 846 (1,113)Different present liabilities 769 (677)Different 304 118 Web money supplied by working actions 5,102 1,310 Money flows from investing actions Expenditures for property, plant, and tools (5,266) (6,215)Purchases of available-for-sale securities (1,110) (496)Proceeds from maturities and gross sales of available-for-sale securities 1,433 1,192 Proceeds from authorities incentives 267 248 Different (35) (90)Web money supplied by (used for) investing actions (4,711) (5,361) Money flows from financing actions Repayments of debt (1,816) (706)Funds of dividends to shareholders (384) (378)Funds on tools buy contracts (127) (112)Repurchases of frequent inventory – repurchase program — (425)Proceeds from issuance of debt 999 6,716 Different (40) — Web money supplied by (used for) financing actions (1,368) 5,095 Impact of adjustments in forex trade charges on money, money equivalents, and restricted money (15) (13) Web enhance (lower) in money, money equivalents, and restricted money (992) 1,031 Money, money equivalents, and restricted money at starting of interval 8,656 8,339 Money, money equivalents, and restricted money at finish of interval$7,664 $9,370 MICRON TECHNOLOGY, INC.NOTES (Unaudited)(All tabular quantities in tens of millions)InventoriesIn 2023, we recorded prices of $1.83 billion to value of products bought to write down down the carrying worth of labor in course of and completed items inventories to their estimated internet realizable worth (“NRV”). The affect of stock NRV write-downs for every interval displays (1) stock write-downs in that interval, offset by (2) decrease prices in that interval on the sale of stock written down in prior intervals. The impacts of stock NRV write-downs are summarized beneath: third Qtr.2nd Qtr.third Qtr.9 months ended Could 30,2024February 29,2024June 1,2023May 30,2024June 1,2023 Provision to write down down stock to NRV$—$—$(401)$—$(1,831)Decrease prices from sale of stock written down in prior intervals — 382 281 987 281 $—$382$(120)$987$(1,550) Revenue TaxIn the primary quarter of 2024, our tax expense was primarily based on precise outcomes for jurisdictions the place small adjustments in our projected pre-tax earnings would have prompted vital adjustments within the estimated annual efficient tax price. With our improved fiscal 2024 outlook, we have been capable of estimate a extra dependable annual efficient tax price and have reverted to a world annual efficient tax price technique for all jurisdictions starting within the second quarter of 2024.MICRON TECHNOLOGY, INC.RECONCILIATION OF GAAP TO NON-GAAP MEASURES(In tens of millions, besides per share quantities) third Qtr.2nd Qtr.third Qtr. Could 30,2024February 29,2024June 1,2023 GAAP gross margin$1,832 $1,079 $(668)Inventory-based compensation 80 80 60 Different 5 4 5 Non-GAAP gross margin$1,917 $1,163 $(603) GAAP working bills$1,113 $888 $1,093 Inventory-based compensation (137) (129) (91)Restructure and asset impairments — — (68)Patent cross-license settlement acquire — 200 — Litigation settlement — — (68)Non-GAAP working bills$976 $959 $866 GAAP working earnings (loss)$719 $191 $(1,761)Inventory-based compensation 217 209 151 Restructure and asset impairments — — 68 Patent cross-license settlement acquire — (200) — Litigation settlement — — 68 Different 5 4 5 Non-GAAP working earnings (loss)$941 $204 $(1,469) GAAP internet earnings (loss)$332 $793 $(1,896)Inventory-based compensation 217 209 151 Restructure and asset impairments — — 68 Patent cross-license settlement acquire — (200) — Litigation settlement — — 68 Different 3 2 7 Estimated tax results of above and different tax changes(1) 150 (328) 37 Non-GAAP internet earnings (loss)$702 $476 $(1,565) GAAP weighted-average frequent shares excellent – Diluted 1,123 1,114 1,094 Adjustment for stock-based compensation 13 20 — Non-GAAP weighted-average frequent shares excellent – Diluted 1,136 1,134 1,094 GAAP diluted earnings (loss) per share$0.30 $0.71 $(1.73)Results of the above changes 0.32 (0.29) 0.30 Non-GAAP diluted earnings (loss) per share$0.62 $0.42 $(1.43) (1)The second fiscal quarter tax profit arose from making use of our estimated annual efficient tax price to our year-to-date outcomes. A portion of this profit is included in our non-GAAP internet earnings, with a bigger profit in our GAAP internet earnings. The divergence between the GAAP and non-GAAP tax pertains to the distinction in our GAAP and non-GAAP estimated annual efficient tax charges, that are computed individually.RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued third Qtr.2nd Qtr.third Qtr. Could 30,2024February 29,2024June 1,2023 GAAP internet money supplied by working actions$2,482 $1,219 $24 Expenditures for property, plant, and tools (2,086) (1,384) (1,561)Funds on tools buy contracts (45) (26) (36)Proceeds from gross sales of property, plant, and tools 41 13 34 Proceeds from authorities incentives 33 149 184 Investments in capital expenditures, internet (2,057) (1,248) (1,379)Adjusted free money circulate$425 $(29)$(1,355) The tables above reconcile GAAP to non-GAAP measures of gross margin, working bills, working earnings (loss), internet earnings (loss), diluted shares, diluted earnings (loss) per share, and adjusted free money circulate. The non-GAAP changes above could or might not be rare or nonrecurring in nature, however are a results of periodic or non-core working actions. We imagine this non-GAAP data is useful in understanding tendencies and in analyzing our working outcomes and earnings. We’re offering this data to traders to help in performing evaluation of our working outcomes. When evaluating efficiency and making choices on the way to allocate our assets, administration makes use of this non-GAAP data and believes traders ought to have entry to related information when making their funding choices. We imagine these non-GAAP monetary measures enhance transparency by offering traders with helpful supplemental details about the monetary efficiency of our enterprise, enabling enhanced comparability of our working outcomes between intervals and with peer corporations. The presentation of those adjusted quantities varies from quantities introduced in accordance with U.S. GAAP and due to this fact might not be akin to quantities reported by different corporations. Our administration excludes the next objects in analyzing our working outcomes and understanding tendencies in our earnings:Inventory-based compensation;Positive factors and losses from settlements;Restructure and asset impairments; andThe estimated tax results of above, non-cash adjustments in internet deferred earnings taxes, assessments of tax exposures, sure tax issues associated to prior fiscal intervals, and vital adjustments in tax legislation.Non-GAAP diluted shares are adjusted for the affect of further shares ensuing from the exclusion of stock-based compensation from non-GAAP earnings (loss).MICRON TECHNOLOGY, INC.RECONCILIATION OF GAAP TO NON-GAAP OUTLOOKFQ4-24 GAAP Outlook Changes Non-GAAP Outlook Income$7.60 billion ± $200 million — $7.60 billion ± $200 millionGross margin33.5% ± 1.0% 1.0% A 34.5% ± 1.0percentOperating bills$1.19 billion ± $15 million $125 million B $1.06 billion ± $15 millionDiluted earnings per share(1)$0.61 ± $0.08 $0.47 A, B, C $1.08 ± $0.08Non-GAAP Changes(in tens of millions) AStock-based compensation – value of products bought $84AOther – value of products bought 4BStock-based compensation – analysis and improvement 77BStock-based compensation – gross sales, normal, and administrative 48CTax results of the above objects and different tax changes 315 $528 (1)GAAP earnings per share primarily based on roughly 1.12 billion diluted shares and non-GAAP earnings per share primarily based on roughly 1.14 billion diluted shares.The tables above reconcile our GAAP to non-GAAP steering primarily based on the present outlook. The steering doesn’t incorporate the affect of any potential enterprise mixtures, divestitures, further restructuring actions, stability sheet valuation changes, strategic investments, financing transactions, and different vital transactions. The timing and affect of such objects are depending on future occasions that could be unsure or outdoors of our management.CONTACT: Contacts: Satya Kumar Investor Relations (408) 450-6199 Erica Rodriguez Pompen Media Relations (408) 834-1873