Micron Technology, Inc. Reports Results for the Third Quarter of Fiscal 2024
June 26, 2024 at 4:05 PM EDT
AI demand drives 50% sequential data center revenue growth and record high data center revenue mix
BOISE, Idaho, June 26, 2024 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its third quarter of fiscal
2024, which ended May 30, 2024.
Fiscal Q3 2024 highlights

Revenue of $6.81 billion versus $5.82 billion for the prior quarter and $3.75 billion for the same period last year
GAAP net income of $332 million, or $0.30 per diluted share
Non-GAAP net income of $702 million, or $0.62 per diluted share
Operating cash flow of $2.48 billion versus $1.22 billion for the prior quarter and $24 million for the same period last year
“Robust AI demand and strong execution enabled Micron to drive 17% sequential revenue growth, exceeding our guidance range in fiscal Q3,” said
Sanjay Mehrotra, President and CEO of Micron Technology. “We are gaining share in high-margin products like High Bandwidth Memory (HBM), andour data center SSD revenue hit a record high, demonstrating the strength of our AI product portfolio across DRAM and NAND. We are excited about
the expanding AI-driven opportunities ahead, and are well positioned to deliver a substantial revenue record in fiscal 2025.”
Quarterly Financial Results
GAAP(1)(in millions, except per share amounts)
Revenue
Gross margin
percent of revenue
Operating expenses
Operating income (loss)
percent of revenue
Net income (loss)
Diluted earnings (loss) per share

FQ3-24$

6,811 $
1,832
26.9%
1,113719
10.6%
332
0.30

Non-GAAP(2)FQ2-24

FQ3-23

5,824 $
1,079
18.5%
888
191
3.3%
793
0.71

3,752
$
(668)
(17.8%)
1,093(1,761)(46.9%)(1,896)(1.73)

FQ3-24

FQ2-24

6,811 $
1,917
28.1%
976
941
13.8%
702
0.62

5,824 $
1,163
20.0%
959
204
3.5%
476
0.42

FQ3-233,752(603)(16.1%)
866(1,469)(39.2%)(1,565)(1.43)

Investments in capital expenditures, net(2) were $2.06 billion for the third quarter of 2024, which resulted in adjusted free cash flows(2) of $425 million.
Micron ended the third quarter of 2024 with cash, marketable investments, and restricted cash of $9.22 billion. On June 26, 2024, Micron’s Board of
Directors declared a quarterly dividend of $0.115 per share, payable in cash on July 23, 2024, to shareholders of record as of the close of business on
July 8, 2024.
Business Outlook
The following table presents Micron’s guidance for the fourth quarter of 2024:
FQ4-24
Revenue
Gross margin
Operating expenses
Diluted earnings per share

GAAP(1) Outlook

Non-GAAP(2) Outlook$7.60 billion ± $200 million
33.5% ± 1.0%
$1.19 billion ± $15 million$0.61 ± $0.08$7.60 billion ± $200 million
34.5% ± 1.0%
$1.06 billion ± $15 million$1.08 ± $0.08

Further information regarding Micron’s business outlook is included in the prepared remarks and slides, which have been posted atinvestors.micron.com.
Investor Webcast
Micron will host a conference call on Wednesday, June 26, 2024 at 2:30 p.m. Mountain Time 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 beavailable for one year after the call. For Investor Relations and other company updates, follow us on X @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 arelentless 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 thatour people create fuel the data economy, enabling advances in artificial intelligence (AI) and compute-intensive 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.
© 2024 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, technology trends and developments including
artificial intelligence, market demand, and our financial and operating results, including our guidance for the fourth quarter of 2024. These forwardlooking 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, including 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 investors.micron.com/risk-factor. Although we believe that the expectations reflected in the forward-looking statements arereasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forwardlooking statements 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 andunderstanding trends in our earnings, adjusted free cash flow, 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.
May 30,2024
Revenue$

Cost of goods sold
Gross margin
Research and development
Selling, general, and administrative
Restructure and asset impairments
Other operating (income) expense, net
Operating income (loss)
Interest income
Interest expense
Other non-operating income (expense), net

Income tax (provision) benefit
Equity in net income (loss) of equity method investees

6,811
4,979

2nd Qtr.
February 29,2024
$

5,824
4,745

Nine months ended

3rd Qtr.
June 1,2023
$

3,752
4,420

May 30,2024$

17,361
14,485June 1,2023$

11,53012,511

1,832

1,079

(668)

2,876

(981)

850
291
—
(28)

832
280
—
(224)

758
219
68
48

2,527
834
—(267)

2,395
701
167
29719191(1,761)(218)(4,273)

136
(150)
10

130(144)(7)

127(119)
—398
(426)
(24)

334
(259)
(2)

715

170

(1,753)(270)(4,200)

(377)
(6)

622
1(139)
(4)

172
(11)

(201)
(2)

Net income (loss)

$

332

$

793

$

(1,896)

$

(109)

$

(4,403)

Earnings (loss) per share
Basic
Diluted

$

0.30
0.30

$

0.72
0.71

$

(1.73)(1.73)$(0.10)(0.10)$(4.03)(4.03)

Number of shares used in per share calculations
Basic
Diluted

1,107
1,123

1,104
1,114

1,094
1,094

1,104
1,104

1,092
1,092

MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS(In millions)(Unaudited)
May 30,2024

As ofAssets
Cash and equivalents
Short-term investments
Receivables
Inventories$

Other current assets
Total current assets
Long-term marketable investments
Property, plant, and equipment
Operating lease right-of-use assets
Intangible assets
Deferred tax assets
Goodwill

7,594
785
5,131
8,512
1,297

February 29,2024$

23,319775
37,926
660
413
597
1,150
1,415

Other noncurrent assets
Total assets
Liabilities and equityAccounts payable and accrued expenses
Current debt

8,016
990
4,296
8,443
1,690

August 31,2023$

23,435627
37,587
642
414
664
1,150
1,199

8,577
1,017
2,443
8,387
820
21,244844
37,928
666
404
756
1,150
1,262

$

66,255$65,718$64,254

$

5,145
398
1,297

$

4,680
344
1,235

$

3,958
278
529

Other current liabilities
Total current liabilities
Long-term debt
Noncurrent operating lease liabilities
Noncurrent unearned government incentives
Other noncurrent liabilities

6,840
12,860
609
672
1,049

6,259
13,378
593
662
956

4,765
13,052603
727
987

Total liabilities

22,03021,84820,134125
11,794
40,169(7,552)(311)

125
11,56439,997(7,552)(264)

124
11,03640,824(7,552)(312)

Commitments and contingencies
Shareholders’ equity
Common stock
Additional capital
Retained earnings
Treasury stock
Accumulated other comprehensive income (loss)

44,225

Total equity$

Total liabilities and equity

66,25543,870$65,71844,120$64,254

MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(Unaudited)
May 30,2024

Nine months ended
Cash flows from operating activities
Net income (loss)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation expense and amortization of intangible assets
Stock-based compensation
Provision to write-down inventories to net realizable value$(109)
5,794
620—

June 1,2023$(4,403)
5,819
448
1,831

Change in operating assets and liabilities:
Receivables
Inventories
Other current assets
Accounts payable and accrued expenses
Other current liabilities
Other(2,562)
(125)
(435)
846
769
304

2,728
(3,406)(35)(1,113)(677)
118

Net cash provided by operating activities

5,102

1,310

(5,266)(1,110)
1,433
267
(35)

(6,215)
(496)
1,192
248
(90)

(4,711)(5,361)(1,816)
(384)
(127)
—
999
(40)

(706)
(378)
(112)
(425)
6,716
—

(1,368)

5,095

(15)

(13)

(992)
8,656

1,031
8,339

Cash flows from investing activities
Expenditures for property, plant, and equipment
Purchases of available-for-sale securities
Proceeds from maturities and sales of available-for-sale securities
Proceeds from government incentives
Other
Net cash provided by (used for) investing activities
Cash flows from financing activities
Repayments of debt
Payments of dividends to shareholders
Payments on equipment purchase contracts
Repurchases of common stock - repurchase program
Proceeds from issuance of debt
Other
Net cash provided by (used for) financing activities
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash
Net increase (decrease) in cash, cash equivalents, and restricted cashCash, cash equivalents, and restricted cash at beginning of period$Cash, cash equivalents, and restricted cash at end of period

7,664

$

9,370

MICRON TECHNOLOGY, INC.
NOTES(Unaudited)(All tabular amounts in millions)
Inventories
In 2023, we recorded charges of $1.83 billion to cost of goods sold to write down the carrying value of work in process and finished goods inventories
to their estimated net realizable value (“NRV”). The impact of inventory NRV write-downs for each period reflects (1) inventory write-downs in that
period, offset by (2) lower costs in that period on the sale of inventory written down in prior periods. The impacts of inventory NRV write-downs are
summarized below:
3rd Qtr.
May 30,2024
Provision to write down inventory to NRV
Lower costs from sale of inventory written down in priorperiods$

2nd Qtr.
February 29,2024
—

$—
$—

—

382

May 30,
2024

$

(401)

$(120)

382$

Nine months ended

3rd Qtr.
June 1,2023$

281

June 1,2023—$(1,831)$(1,550)

987
$987

281

Income Tax
In the first quarter of 2024, our tax expense was based on actual results for jurisdictions where small changes in our projected pre-tax income would
have caused significant changes in the estimated annual effective tax rate. With our improved fiscal 2024 outlook, we were able to estimate a morereliable annual effective tax rate and have reverted to a global annual effective tax rate method for all jurisdictions beginning in the second quarter of2024.

MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES(In millions, except per share amounts)
3rd Qtr.
May 30,2024
GAAP gross margin
Stock-based compensation

2nd Qtr.
February 29,2024

3rd Qtr.
June 1,2023

$

1,832
80
5$

1,079
80
4$

(668)
60
5

Non-GAAP gross margin

$

1,917

$

1,163$(603)

GAAP operating expenses
Stock-based compensation
Restructure and asset impairments
Patent cross-license agreement gain

$

1,113
(137)
———

$888
(129)
—
200
—

$

1,093
(91)
(68)
—(68)

Non-GAAP operating expenses

$976

$

959

$

866

GAAP operating income (loss)
Stock-based compensationRestructure and asset impairments
Patent cross-license agreement gain
Litigation settlement

$719
217
—
—
—
5$

191
209
—
(200)
—
4$(1,761)
151
68
—
68
5$

941

$

204

$

(1,469)

$332
217
—
—
—
3$

793
209
—
(200)
—
2$

(1,896)
151
68
—
68
7$

(1,565)

Other

Litigation settlement

Other
Non-GAAP operating income (loss)
GAAP net income (loss)
Stock-based compensation
Restructure and asset impairments
Patent cross-license agreement gain
Litigation settlement
Other
Estimated tax effects of above and other tax adjustments(1)150$

Non-GAAP net income (loss)
GAAP weighted-average common shares outstanding - Diluted
Adjustment for stock-based compensation
Non-GAAP weighted-average common shares outstanding - Diluted
GAAP diluted earnings (loss) per share

(1)

(328)
$

476

37

1,123
13

1,114
20

1,094
—

1,136

1,134

1,094

$

0.30
0.32

$

0.71
(0.29)$(1.73)
0.30

$

0.62

$

0.42$

(1.43)

Effects of the above adjustments
Non-GAAP diluted earnings (loss) per share702

The second fiscal quarter tax benefit arose from applying our estimated annual effective tax rate to our year-to-date results. A portion of thisbenefit is included in our non-GAAP net income, with a larger benefit in our GAAP net income. The divergence between the GAAP andnon-GAAP tax relates to the difference in our GAAP and non-GAAP estimated annual effective tax rates, which are computed separately.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
3rd Qtr.
May 30,2024
GAAP net cash provided by operating activities
Expenditures for property, plant, and equipment$2,482(2,086)

2nd Qtr.
February 29,2024$

1,219(1,384)3rd Qtr.
June 1,2023$

24(1,561)

Payments on equipment purchase contracts
Proceeds from sales of property, plant, and equipment

(45)
4133

Proceeds from government incentives

(26)
13149

(2,057)

Investments in capital expenditures, net$

Adjusted free cash flow

425

(36)
34184

(1,248)$(29)(1,379)$(1,355)

The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income (loss), net income (loss), dilutedshares, diluted earnings (loss) per share, and adjusted free cash flow. 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 ouroperating 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;
Gains and losses from settlements;
Restructure and asset impairments; andThe 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 (loss).

MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
Non-GAAPOutlookFQ4-24

GAAP Outlook

Revenue
Gross margin$7.60 billion ± $200 million
33.5% ± 1.0%—1.0%A

Operating expenses$1.19 billion ± $15 million$125 million

B$7.60 billion ±$200 million
34.5% ± 1.0%
$1.06 billion ±$15 million$0.61 ± $0.08$0.47

A, B, C

$1.08 ± $0.08

$

84
47748
315

$

528

Diluted earnings per share(1)Adjustments

Non-GAAP Adjustments(in millions)
AAB
B

Stock-based compensation – cost of goods sold
Other – cost of goods sold
Stock-based compensation – research and development
Stock-based compensation – sales, general, and administrativeC

Tax effects of the above items and other tax adjustments(1)

GAAP earnings per share based on approximately 1.12 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, additional 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 outsideof our control.

Contacts: Satya Kumar Investor Relations (408) 450-6199 Erica Rodriguez Pompen Media Relations (408) 834-1873