Micron Technology, Inc. Reports Results for the Second Quarter of Fiscal 2023
March 28, 2023
Achieving technology milestones while cutting expenses and reducing supply
BOISE, Idaho, March 28, 2023 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its second quarter of fiscal
2023, which ended March 2, 2023.
Fiscal Q2 2023 highlights

Revenue of $3.69 billion versus $4.09 billion for the prior quarter and $7.79 billion for the same period last year
GAAP net loss of $2.31 billion, or $2.12 per diluted share
Non-GAAP net loss of $2.08 billion, or $1.91 per diluted share
Inventory write-downs of $1.43 billion, impact of $1.34 per diluted share
Operating cash flow of $343 million versus $943 million for the prior quarter and $3.63 billion for the same period last year
“Micron delivered fiscal second quarter revenue within our guidance range in a challenging market environment,” said Micron Technology President
and CEO Sanjay Mehrotra. “Customer inventories are getting better, and we expect gradual improvements to the industry’s supply-demand balance.
We remain confident in long-term demand and are investing prudently to preserve our technology and product portfolio competitiveness.”
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

FQ2-23$

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

Non-GAAP(2)FQ1-23

FQ2-22

4,085 $
893
21.9%
1,102(209)(5.1%)(195)(0.18)

7,786$
3,676
47.2%1,130
2,546
32.7%
2,263
2.00

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

FQ1-23
4,085 $
934
22.9%
999(65)(1.6%)(39)(0.04)

FQ2-22
7,786
3,724
47.8%
974
2,750
35.3%
2,444
2.14

Investments in capital expenditures, net(2) were $2.16 billion for the second quarter of 2023, which resulted in adjusted free cash flows(2) of negative$1.81 billion. Micron ended the second quarter of 2023 with cash, marketable investments, and restricted cash of $12.12 billion. Micron’s Board of
Directors has declared a quarterly dividend of $0.115 per share, payable in cash on April 25, 2023, to shareholders of record as of the close ofbusiness on April 10, 2023.
Business Outlook
The table below presents Micron’s guidance for the third quarter of 2023. This guidance assumes a write down of approximately $500 million
associated with inventory produced during the third quarter, impacting both GAAP and non-GAAP diluted earnings (loss) per share by approximately$0.45.
FQ3-23
Revenue
Gross margin
Operating expenses
Diluted earnings (loss) per share

GAAP(1) Outlook

Non-GAAP(2) Outlook$3.70 billion ± $200 million(23.0%) ± 2.5%
$1.07 billion ± $15 million($1.79) ± $0.07$3.70 billion ± $200 million(21.0%) ± 2.5%$900 million ± $15 million($1.58) ± $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 Tuesday, March 28, 2023 at 2:30 p.m. Mountain Time to discuss its second quarter financial results and provide
forward-looking guidance for its third 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 @MicronTech on Twitter at twitter.com/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.
© 2023 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, 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, including 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 micron.com/certainfactors. 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)(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.
March 2,2023
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

3,693 $
4,899

1st Qtr.
December 1,2022

2nd Qtr.
March 3,2022

Six months ended
March 2,
March 3,2023
2022

4,085 $
3,192

7,786 $
4,110

7,778 $
8,091

15,473
8,232(1,206)893

3,676(313)

7,241

788
231
86(8)

849
251
13(11)

792
263
570

1,637
482
99(19)

1,50452243(5)(2,303)

(209)

2,546

(2,512)

5,177

119(89)288(51)(4)

12(55)
6

207
(140)
(2)

22(100)(69)(2,271)

(176)

2,509

(2,447)

5,030

(54)
13(8)
(11)

(255)
9(62)
2(474)
13

Net income (loss)$(2,312) $(195) $2,263 $

(2,507) $4,569

Earnings (loss) per share
Basic
Diluted$(2.12) $(2.12)(0.18) $(0.18)

2.02 $
2.00(2.30) $(2.30)

4.08
4.04

1,091
1,091

1,090
1,090

1,119
1,130

1,091
1,091

1,119
1,130

Number of shares used in per share calculations
Basic
Diluted

MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS(In millions)

(Unaudited)
March 2,2023

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

December 1,2022

September 1,2022

9,798 $
1,020
2,278
8,129
673

9,574 $
1,007
3,318
8,359
663

8,262
1,069
5,130
6,663
657

21,8981,212
39,085
673
410
697
1,228
1,317

22,921
1,426
39,335
693
428
672
1,228
1,171

21,781
1,647
38,549
678
421
702
1,228
1,277

$

66,520 $67,874 $66,283$

4,310 $
237
708

5,438 $
171
916

6,090
103
1,346

Other noncurrent liabilities

5,255
12,037
610
529
832

6,525
10,094
625
516
808

7,539
6,803
610
589
835

Total liabilities

19,263

18,56816,376

123
10,63344,426(7,552)(373)

123
10,33546,873(7,552)(473)

123
10,19747,274(7,127)(560)

47,25749,30649,907

66,520 $67,874 $66,283

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
Other noncurrent assets
Total assets
Liabilities and equity
Accounts payable and accrued expenses
Current debt
Other current liabilities
Total current liabilities
Long-term debt
Noncurrent operating lease liabilities
Noncurrent unearned government incentives

Commitments and contingencies
Shareholders’ equity
Common stock
Additional capital
Retained earnings
Treasury stock
Accumulated other comprehensive income (loss)
Total equity
Total liabilities and equity$MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(Unaudited)
March 2,2023

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
Provision to write-down inventories to net realizable value
Stock-based compensation(Gain) loss on debt repurchases
Change in operating assets and liabilities:
Receivables
Inventories
Accounts payable and accrued expenses$March 3,2022(2,507) $4,569

3,8631,430303
—

3,413
—
247
83

2,910
(2,896)(1,795)

(44)
(900)
107

OtherNet 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 government incentives
Proceeds from sales of available-for-sale securities
Proceeds from sale of Lehi, Utah fab
Other
Net cash provided by (used for) investing activities
Cash flows from financing activities
Proceeds from issuance of debtRepurchases of common stock - repurchase program
Payments of dividends to shareholders
Payments on equipment purchase contracts
Repayments of debt
OtherNet 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

$(22)

91

1,286

7,566

(4,654)
(293)
765
64
8—(71)(5,876)
(922)
631
66
172
893
(140)

(4,181)(5,176)

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

2,000(667)
(224)
(105)
(1,981)
(2)

4,434

(979)

9(16)

1,548
8,339

1,395
7,829

9,887 $

9,224

MICRON TECHNOLOGY, INC.
NOTES
(Unaudited)
Inventories
In the second quarter of 2023, we recorded a charge of $1.43 billion to cost of goods sold to write down the carrying value of work in process andfinished goods inventories to their estimated net realizable values.
Debt Activity
Term Loan Agreement: On November 3, 2022, we entered into a Term Loan Agreement consisting of three tranches and borrowed $2.60 billion inaggregate principal amount, including $927 million due November 3, 2025, $746 million due November 3, 2026, and $927 million due November 3,2027.
On January 5, 2023, we amended the Term Loan Agreement and borrowed an additional $600 million in aggregate principal amount, including $125
million due November 3, 2025, $250 million due November 3, 2026, and $225 million due November 3, 2027. Borrowings under the Term LoanAgreement will generally bear interest at adjusted term SOFR plus an applicable interest rate margin ranging from 1.00% to 2.00%, varying by trancheand depending on our corporate credit ratings.
Senior Unsecured Notes: On October 31, 2022, we issued $750 million principal amount of 6.750% senior unsecured notes due November 1, 2029
in a public offering and received proceeds of $744 million.
On February 9, 2023, we issued an additional $500 million principal amount of 6.750% senior unsecured notes due November 1, 2029 and received
proceeds of $520 million. Additionally, we issued $750 million principal amount of 5.875% senior unsecured notes due February 9, 2033 and received
proceeds of $745 million.
MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES(In millions, except per share amounts)
2nd Qtr.
March 2,2023
GAAP gross margin
Stock-based compensation

2nd Qtr.
March 3,2022$(1,206) $414893 $
36
53,67644
4$(1,161) $934 $3,724OtherNon-GAAP gross margin

1st Qtr.
December 1,2022

GAAP operating expenses
Stock-based compensation
Restructure and asset impairments$

1,097 $(95)(86)—

1,102 $(90)(13)—

1,130(75)(5)(76)

Non-GAAP operating expenses$916 $

999 $974

GAAP operating income (loss)
Stock-based compensation
Restructure and asset impairments$(2,303) $136
86
4(209) $126
1352,546
119
580

Non-GAAP operating income (loss)$(2,077) $(65) $2,750

GAAP net income (loss)
Stock-based compensation
Restructure and asset impairments
Amortization of debt discount and other costs
Other$(2,312) $136
86441(195) $126
135572,263
119
5880(31)$(2,081) $(39) $

2,444

Other

Other

Estimated tax effects of above and other tax adjustments
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

1,091
—

1,090
—

1,130
13

1,091

1,090

1,143

GAAP diluted earnings (loss) per share$Effects of the above adjustments
Non-GAAP diluted earnings (loss) per share(2.12) $0.21(0.18) $
0.14

2.00
0.14$

(1.91) $(0.04) $2.14

RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
2nd Qtr.
March 2,2023
GAAP net cash provided by operating activities$Expenditures for property, plant, and equipment
Proceeds from sales of property, plant, and equipment
Payments on equipment purchase contracts
Amounts funded by partners
Investments in capital expenditures, net
Adjusted free cash flow$

1st Qtr.
December 1,2022
343 $943 $2nd Qtr.
March 3,2022
3,628(2,205)17(29)
62(2,449)
23(47)
2(2,611)27(27)
11(2,155)(2,471)(2,600)(1,812) $(1,528) $1,028

The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income (loss), net income (loss), diluted
shares, 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 routinely 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;
Employee severance;
Gains and losses from settlements;
Restructure and asset impairments;

Amortization of debt discount and other costs;
Gains and losses from debt repurchases and conversions;
Gains and losses from business acquisition activities; 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
FQ3-23
Revenue
Gross margin
Operating expenses

GAAP Outlook$3.70 billion ± $200 million(23.0%) ± 2.5%
$1.07 billion ± $15 million

Diluted earnings (loss) per share(1)($1.79) ± $0.07

Adjustments

Non-GAAP Outlook—2.0% A
$166 million B$3.70 billion ± $200 million(21.0%) ± 2.5%$900 million ± $15 million$0.21 A, B, C($1.58) ± $0.07

Non-GAAP Adjustments(in millions)
AA
B
B
B

Stock-based compensation – cost of goods sold
Other – cost of goods sold
Stock-based compensation – research and development
Stock-based compensation – selling, general, and administrative
Restructure and asset impairments

CTax effects of the above items and other tax adjustments$55
56244605$231(1) GAAP and non-GAAP earnings (loss) per share based on approximately 1.09 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:Farhan Ahmad
Investor Relations
farhanahmad@micron.com(408) 834-1927
Erica Rodriguez Pompen
Media Relations
epompen@micron.com(408) 834-1873

Source: Micron Technology, Inc.