Micron Technology, Inc. Reports Results for the First Quarter of Fiscal 2021
January 7, 2021
Industry’s first 176-layer NAND in production
BOISE, Idaho, Jan. 07, 2021 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its first quarter of fiscal
2021, which ended Dec. 3, 2020.
Fiscal Q1 2021 highlights

Revenue of $5.77 billion versus $6.06 billion for the prior quarter and $5.14 billion for the same period last year
GAAP net income of $803 million, or $0.71 per diluted share
Non-GAAP net income of $897 million, or $0.78 per diluted share
Operating cash flow of $1.97 billion versus $2.27 billion for the prior quarter and $2.01 billion for the same period last year
“Micron delivered outstanding fiscal first quarter results, driven by focused execution and strong end-market demand,” said Micron Technology
President and CEO Sanjay Mehrotra. “We are excited about the strengthening DRAM industry fundamentals. For the first time in our history, Micron issimultaneously leading on DRAM and NAND technologies, and we are in an excellent position to benefit from accelerating digital transformation of theglobal economy fueled by AI, 5G, cloud, and the intelligent edge.”
Quarterly Financial Results
GAAP(1)(in millions, except per share amounts)
Revenue
Gross margin
percent of revenue
Operating expenses
Operating income
percent of revenue
Net income attributable to Micron
Diluted earnings per share

FQ1-21$

Non-GAAP(2)FQ4-20

5,773
$
1,736
30.1 %
870
866
15.0 %
803
0.71

FQ1-20

6,056
$
2,068
34.1 %
911
1,157
19.1 %
988
0.87

5,144
1,366
26.6 %
848
518
10.1 %
491
0.43

FQ1-21$

5,773$
1,784
30.9 %
811
973
16.9 %
897
0.78

FQ4-20
6,056
$
2,111
34.9 %
809
1,302
21.5 %
1,229
1.08

FQ1-205,144
1,405
27.3 %
811
594
11.5 %
548
0.48

Investments in capital expenditures, net(2) were $2.78 billion for the first quarter of 2021. Micron ended the quarter with cash, marketable investments,
and restricted cash of $8.36 billion, for a net cash(2) position of $1.73 billion.
Business Outlook
The following table presents Micron’s guidance for the second quarter of 2021:
FQ2-21Revenue
Gross margin
Operating expenses
Interest (income) expense, net
Diluted earnings per share

GAAP(1) Outlook

Non-GAAP(2) Outlook$5.8 billion ± $200 million
25% ± 1%$882 million ± $25 million$37 million$0.41 ± $0.07$5.8 billion ± $200 million
31% ± 1%$825 million ± $25 million$35 million$0.75 ± $0.07

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 Thursday, Jan. 7, 2021, at 2:30 p.m. MT to discuss its first quarter financial results and provide forward-looking
guidance for its second 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. Through our global brands — Micron® and Crucial® — our broad portfolio of
high-performance memory and storage technologies, including DRAM, NAND, 3D XPoint™ memory, and NOR, is transforming how the world uses
information to enrich life for all. Backed by more than 40 years of technology leadership, our memory and storage solutions enable disruptive trends,

including artificial intelligence, 5G, machine learning, and autonomous vehicles, in key market segments like mobile, data center, client, consumer,industrial, graphics, automotive, and networking. Our common stock is traded on Nasdaq under the MU symbol. To learn more about Micron
Technology, Inc., visit micron.com.
Micron and the Micron orbit logo are trademarks 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, 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 thedocuments we file with the Securities and Exchange Commission, specifically our most recent Form 10-K and Form 10-Q. These documents containand identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. Thesecertain 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 theforward-looking statements after the date of this release to conform these statements to actual results.
(1)(2)

GAAP represents U.S. Generally Accepted Accounting Principles.
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, net cash, and business outlook. Further information regarding Micron’s use ofnon-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)
1st Qtr.
December 3,2020
Revenue$

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

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

Earnings per share
Basic
Diluted

$

6,056
3,988

1st Qtr.
November 28,
2019
$

5,144
3,778

1,736

2,068

1,366

647
214
9630
231
50

640
211(3)

866

1,157

518

10(48)
1313(50)544(47)
46841

1,125

561(51)13(136)
1(55)
2803

990

508—Net income attributable to noncontrolling interests
Net income attributable to Micron

5,773
4,037

4th Qtr.
September 3,2020

(2)

(17)

$803

$

988

$

491$

0.72
0.71

$

0.89
0.87

$

0.44
0.43

Number of shares used in per share calculations
Basic
Diluted

1,115
1,135

1,111
1,131

1,107
1,129

MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS(In millions)(Unaudited)
December 3,
As ofSeptember 3,

2020
AssetsCash and equivalents
Short-term investments
Receivables
Inventories$Other current assets
Total current assetsLong-term marketable investments
Property, plant, and equipment
Operating lease right-of-use assets
Intangible assets
Deferred tax assets
Goodwill

2020

5,985
1,047
3,691
5,521
285

$

16,5291,264
32,229
577
336
726
1,228
802

Other noncurrent assets
Total assets
Liabilities and equity
Accounts payable and accrued expenses
Current debt

7,624
518
3,912
5,607
304
17,965
1,048
31,031
584
334
707
1,228
781

$

53,691$53,678

$

4,856
273
559

$

5,817
270
548

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

5,688
6,356
529
656
555

6,635
6,373
533
643
498

13,784

14,682

120
9,034
34,138(3,495)
110

119
8,917
33,384(3,495)
71

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

39,907

Total equity$

Total liabilities and equity

53,691

38,996$53,678

MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(Unaudited)
December 3,
2020

Three months ended
Cash flows from operating activities
Net incomeAdjustments to reconcile net income to net cash provided by operating activities
Depreciation expense and amortization of intangible assets
Amortization of debt discount and other costs
Stock-based compensation(Gain) loss on debt prepayments, repurchases, and conversions
Change in operating assets and liabilities
Receivables
Inventories
Accounts payable and accrued expenses
Deferred income taxes, net
Other$803

November 28,
2019$5081,487
792—

1,296
1072(42)251
86(753)(24)
18(208)
175
178
193

Net cash provided by operating activities
Cash flows from investing activities
Expenditures for property, plant, and equipment
Purchases of available-for-sale securities
Proceeds from maturities of available-for-sale securities
Proceeds from sales of available-for-sale securities
Proceeds from government incentives
Other
Net cash provided by (used for) investing activities
Cash flows from financing activities
Payments on equipment purchase contracts
Repayments of debt
Acquisition of noncontrolling interest in IMFT
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 cash
Cash, cash equivalents, and restricted cash at beginning of period$Cash, cash equivalents, and restricted cash at end of period

1,967

2,011

(2,738)(1,002)
216
45
40
21

(1,943)
(407)
163
988
22
(12)

(3,418)(1,189)

(97)
(84)
——
(33)

(11)
(1,415)(744)
1,250(72)

(214)

(992)

27(14)(1,638)
7,690

(184)
7,279

6,052

$

7,095

MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES(In millions, except per share amounts)
1st Qtr.
December 3,
2020
GAAP gross margin
Stock-based compensation

4th Qtr.
September 3,
2020

1st Qtr.
November 28,
2019

$

1,736
41
7$

2,068
37
6$

1,366
318

Non-GAAP gross margin$

1,784$

2,111$

1,405

GAAP operating expenses
Stock-based compensation

$870
(51)
(8)

$911
(52)
(50)

$848(41)4

Non-GAAP operating expenses$811$809$

811

GAAP operating income
Stock-based compensation
Restructure and asset impairments

$866
92
87$

1,157
89
506$51872(4)8Non-GAAP operating income

$973

$

1,302$

594

GAAP net income attributable to Micron
Stock-based compensation
Restructure and asset impairments
Amortization of debt discount and other costs(Gain) loss on debt prepayments, repurchases, and conversions
Other
Estimated tax effects of above and non-cash changes in net deferred income
taxes

$803
92
87—7$988
89506—
6$

491
72(4)
10(42)
8

Non-GAAP net income attributable to Micron

$

897

$

1,229$

548

Other

Restructure and asset impairments

Other

GAAP weighted-average common shares outstanding - Diluted

(20)

1,135

90

1,131

13

1,129

Adjustment for stock-based compensation and capped calls
Non-GAAP weighted-average common shares outstanding - Diluted
GAAP diluted earnings per share

119

1,142

1,138

$

0.71
0.07

$

0.87
0.21$

0.43
0.05

$

0.78

$

1.08$

0.48

Effects of the above adjustments
Non-GAAP diluted earnings per share

11
1,146

RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
1st Qtr.
December 3,2020
GAAP net cash provided by operating activities
Investments in capital expenditures, net$

Expenditures for property, plant, and equipment, net(1)Payments on equipment purchase contracts(1)$(2,726)(97)
40

Amounts funded by partners
Adjusted free cash flow

1,967

4th Qtr.
September 3,
2020$(816)

1st Qtr.
November 28,
2019

2,271

$

(2,268)
(14)
122
$

2,011
(1,936)
(11)
22111

$

86

Expenditures for property, plant, and equipment, net include proceeds from sales of property, plant, and equipment of $12 million for the firstquarter of 2021, $12 million for the fourth quarter of 2020, and $7 million for the first quarter of 2020.

December 3,2020

As ofCash and short-term investments
Current and noncurrent restricted cash
Long-term marketable investments

$

7,032
67
1,264(6,629)

$

8,142
66
1,048
(6,643)

$

1,734

$

2,613

Current and long-term debt
Net cash

September 3,2020

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 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. Ourmanagement 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;
Restructure and asset impairments;
Amortization of debt discount and other costs, including the accretion of non-cash interest expense associated with ourconvertible 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 quarterof 2021; andThe estimated tax effects of above, non-cash changes in net deferred income taxes, assessments of tax exposures, andsignificant 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 tomitigate 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 OUTLOOKGAAP Outlook
Revenue
Gross margin
Operating expenses
Interest (income) expense, net
Diluted earnings per share(1)$5.8 billion ± $200 million
25% ± 1%$882 million ± $25 million$37 million

Adjustments—
6% A$57 million B$2 million C$0.41 ± $0.07

Non-GAAP Outlook$5.8 billion ± $200 million31% ± 1%$825 million ± $25 million$35 million$0.34 A, B, C, D

$0.75 ± $0.07

Non-GAAP Adjustments(in millions)

(1)

AA
AAB
B
C

Inventory accounting policy change to FIFO – cost of goods sold
Change in inventory cost absorption – cost of goods sold
Stock-based compensation – cost of goods sold
Other – cost of goods sold
Stock-based compensation – research and development
Stock-based compensation – sales, general, and administrative
Amortization of debt discount and other costs

DTax effects of the above items and non-cash changes in net deferred income taxes$13516554730272(27)$393GAAP earnings per share based on approximately 1.14 billion diluted shares and non-GAAP earnings per share based on approximately 1.15
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 outsideof our control.
Contacts: Farhan Ahmad Investor Relations farhanahmad@micron.com (408) 834-1927 Erica Rodriguez Pompen Media Relations
epompen@micron.com (408) 834-1873