Micron Technology, Inc. Reports Results for the Second Quarter of Fiscal 2024
March 20, 2024 at 4:07 PM EDTAI demand and tight supply accelerate return to profitability
BOISE, Idaho, March 20, 2024 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its second quarter of fiscal
2024, which ended February 29, 2024.
Fiscal Q2 2024 highlights

Revenue of $5.82 billion versus $4.73 billion for the prior quarter and $3.69 billion for the same period last year
GAAP net income of $793 million, or $0.71 per diluted shareNon-GAAP net income of $476 million, or $0.42 per diluted share
Operating cash flow of $1.22 billion versus $1.40 billion for the prior quarter and $343 million for the same period last year
“Micron delivered fiscal Q2 results with revenue, gross margin and EPS well above the high-end of our guidance range — a testament to our team’s
excellent execution on pricing, products and operations,” said Sanjay Mehrotra, President and CEO of Micron Technology. “Our preeminent productportfolio positions us well to deliver a strong fiscal second half of 2024. We believe Micron is one of the biggest beneficiaries in the semiconductor
industry of the multi-year opportunity enabled by AI.”
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

FQ2-24$

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

FQ1-24
4,726 $
(35)
(0.7%)
1,093(1,128)(23.9%)(1,234)(1.12)

Non-GAAP(2)FQ2-23

FQ2-24

3,693$(1,206)(32.7%)
1,097(2,303)(62.4%)(2,312)(2.12)

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

FQ1-24
4,726 $37
0.8%
992(955)(20.2%)(1,048)(0.95)

FQ2-23
3,693(1,161)(31.4%)
916(2,077)(56.2%)(2,081)(1.91)

Investments in capital expenditures, net(2) were $1.25 billion for the second quarter of 2024, which resulted in adjusted free cash flows(2) of negative$29 million. Micron ended the second quarter of 2024 with cash, marketable investments, and restricted cash of $9.72 billion. On March 20, 2024,
Micron’s Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on April 16, 2024, to shareholders of record as of theclose of business on April 1, 2024.
Business Outlook
The following table presents Micron’s guidance for the third quarter of 2024:
FQ3-24
Revenue
Gross margin
Operating expenses
Diluted earnings per share

GAAP(1) Outlook

Non-GAAP(2) Outlook$6.60 billion ± $200 million
25.5% ± 1.5%
$1.11 billion ± $15 million$0.17 ± $0.07$6.60 billion ± $200 million
26.5% ± 1.5%$990 million ± $15 million$0.45 ± $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 Wednesday, March 20, 2024 at 2:30 p.m. Mountain Time to discuss its second quarter financial results andprovide forward-looking guidance for its third quarter. A live webcast of the call will be available online at investors.micron.com. A webcast replay willbe available 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 and 5G 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, market
demand, and our financial and operating results, including our guidance for the third quarter of 2024. These forward-looking statements are subject toa number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents we file with the Securities andExchange 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 atinvestors.micron.com/risk-factor. 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 the forward-looking statements toconform 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, 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)
2nd Qtr.
February 29,2024
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

5,824
4,745

1st Qtr.
November 30,2023
$

4,726
4,761

Six months ended

2nd Qtr.
March 2,2023
$

3,693
4,899

February 29,2024$

10,5509,506March 2,2023
$

7,778
8,091

1,079

(35)

(1,206)

1,044

(313)

832
280
—
(224)

845
263
—
(15)

788
231
86(8)

1,677
543
—
(239)

1,637
482
99(19)

191(1,128)(2,303)(937)(2,512)130(144)(7)

132(132)
(27)

119
(89)
2262(276)
(34)

207
(140)
(2)

170

(1,155)(2,271)(985)(2,447)

622
1(73)
(6)

(54)
13

549
(5)

(62)
2

Net income (loss)

$793

$

(1,234)$(2,312)$(441)$(2,507)

Earnings (loss) per share
Basic
Diluted

$

0.72
0.71

$

(1.12)(1.12)$(2.12)(2.12)$(0.40)(0.40)$(2.30)(2.30)

Number of shares used in per share calculations
Basic
Diluted

1,104
1,114

1,100
1,100

1,091
1,091

1,102
1,102

1,091
1,091MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS(In millions)(Unaudited)
February 29,2024

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

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

November 30,
2023$

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

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

8,075
973
2,943
8,276
791

August 31,2023$

21,058720
37,677
648
416
781
1,150
1,326

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

$

65,718$63,776$64,254

$

4,680
344
1,235

$

3,946
908
1,108

$

3,958
278
529

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

6,259
13,378
593
662
956

5,962
12,597
601
705
1,026

4,765
13,052603
727
987

Total liabilities

21,84820,891

20,134125
11,56439,997(7,552)(264)

124
11,21739,356(7,552)(260)

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)

43,870Total equity$

Total liabilities and equity

65,71842,885$

63,77644,120$64,254

MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(Unaudited)
February 29,2024

Six 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$(441)
3,839

March 2,2023$(2,507)3,863

Stock-based compensation
Provision to write-down inventories to net realizable value
Change in operating assets and liabilities:
Receivables
Inventories
Other current assets
Accounts payable and accrued expenses
Other current liabilities

401—303
1,430

Other(1,759)
(57)
(799)
573
706
157

2,910
(2,896)4(1,144)
(638)
(39)

Net cash provided by operating activities

2,620

1,286

(3,180)
(465)
726
234
(24)

(4,654)(293)
773
64(71)(2,709)(4,181)(1,101)
(256)
(82)
—
999
(18)

(53)
(252)
(76)
(425)
5,221
19(458)

4,434

(8)

9(555)
8,656

1,548
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 securitiesProceeds 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 cash
Cash, cash equivalents, and restricted cash at beginning of period$Cash, cash equivalents, and restricted cash at end of period

8,101$9,887

MICRON TECHNOLOGY, INC.
NOTES(Unaudited)(All tabular amounts in millions)
Inventories
In 2023, we recorded charges of $1.83 billion to cost of goods sold to write down the carrying value of work in process and finished goods inventories
to their estimated net realizable value (“NRV”). The impact of inventory NRV write-downs for each period reflects (1) inventory write-downs in that
period, offset by (2) lower costs in that period on the sale of inventory written down in prior periods. The impacts of inventory NRV write-downs are
summarized below:
2nd Qtr.
February 29,2024
Provision to write down inventory to NRV
Lower costs from sale of inventory written down in priorperiods$—

1st Qtr.
November 30,2023
$

382
$

382

—

$

(1,430)$(1,430)

605
$

605

Six months ended

2nd Qtr.
March 2,2023

February 29,2024$——

March 2,2023$(1,430)$(1,430)

987
$

987

—

Income Tax
For the first quarter of 2024, we recorded tax expense based on actual first quarter results, as small changes in our projected pre-tax income causesignificant changes in the estimated annual effective tax rate. With our improved fiscal 2024 outlook, we can now estimate a more reliable annual
effective tax rate and have reverted to a global annual effective tax rate method. The second fiscal quarter tax benefit arises from applying thisestimated annual effective tax rate to our year-to-date results.

MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES(In millions, except per share amounts)
2nd Qtr.
February 29,2024
GAAP gross margin
Stock-based compensation

1st Qtr.
November 30,2023

2nd Qtr.
March 2,2023

$

1,079
80
4$

(35)
67
5$

(1,206)
41
4

Non-GAAP gross margin

$

1,163

$

37$

(1,161)GAAP operating expenses
Stock-based compensation
Restructure and asset impairments
Patent cross-license agreement gain

$888
(129)
—
200
—

$1,093
(115)
—
—
14$

1,097
(95)
(86)
—
—

Non-GAAP operating expenses

$959

$992

$

916

GAAP operating income (loss)
Stock-based compensation
Restructure and asset impairments
Patent cross-license agreement gain

$191
209
—
(200)
4$(1,128)
182
—
—
(9)

$(2,303)
136
86—
4Non-GAAP operating income (loss)$204$(955)$(2,077)

GAAP net income (loss)
Stock-based compensation
Restructure and asset impairments
Patent cross-license agreement gain
Other

$793
209
—
(200)
2$

(1,234)
182
—
—
(10)

$(2,312)
136
86
—
8$

(1,048)$(2,081)

Other

Other

Other

Estimated tax effects of above and other tax adjustments(1)(328)$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

14

1

1,114
20

1,100
—

1,091
—

1,134

1,100

1,091

$

0.71
(0.29)$(1.12)0.17$(2.12)
0.21$

0.42

$

(0.95)$(1.91)

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

476(1) As described in the Income Tax note above, the second fiscal quarter tax benefit arises from applying our estimated annual effective tax rate to ouryear-to-date results. A portion of this benefit is included in our non-GAAP net income, with a larger benefit in our GAAP net income. The divergence
between the GAAP and non-GAAP amounts of this tax benefit relates to the difference in our GAAP and non-GAAP estimated annual effective taxrates, which are computed separately.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
2nd Qtr.
February 29,2024
GAAP net cash provided by operating activities
Expenditures for property, plant, and equipment
Payments on equipment purchase contracts
Proceeds from sales of property, plant, and equipment

$

1,219
(1,384)(26)
13

1st Qtr.
November 30,2023$

1,401(1,796)(56)
33

2nd Qtr.
March 2,2023$

343(2,205)(29)
17

Proceeds from government incentives
Investments in capital expenditures, net$

Adjusted free cash flow

149

85

62

(1,248)(1,734)(2,155)(29)$(333)$(1,812)

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 ornonrecurring 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;
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
FQ3-24GAAP Outlook

Revenue
Gross margin
Operating expenses$6.60 billion ± $200 million
25.5% ± 1.5%
$1.11 billion ± $15 million

Diluted earnings per share(1)$0.17 ± $0.07

Adjustments

Non-GAAP Outlook—1.0% A
$123 million B$6.60 billion ± $200 million
26.5% ± 1.5%$990 million ± $15 million$0.28 A, B, C

$0.45 ± $0.07

Non-GAAP Adjustments(in millions)AA
B
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$7847647107$312(1) GAAP earnings per share based on approximately 1.11 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 satyakumar@micron.com (408) 450-6199 Erica Rodriguez Pompen Media Relations
epompen@micron.com (408) 834-1873