Micron Technology, Inc. Reports Results for the Fourth Quarter and Full Year of Fiscal 2023
September 27, 2023 at 4:02 PM EDT
Increasing demand and disciplined supply improving industry outlook
BOISE, Idaho, Sept. 27, 2023 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its fourth quarter and fullyear of fiscal 2023, which ended August 31, 2023.
Fiscal Q4 2023 highlights

Revenue of $4.01 billion versus $3.75 billion for the prior quarter and $6.64 billion for the same period last year
GAAP net loss of $1.43 billion, or $1.31 per diluted share
Non-GAAP net loss of $1.18 billion, or $1.07 per diluted share
Operating cash flow of $249 million versus $24 million for the prior quarter and $3.78 billion for the same period last year
Fiscal 2023 highlights

Revenue of $15.54 billion versus $30.76 billion for the prior year
GAAP net loss of $5.83 billion, or $5.34 per diluted share
Non-GAAP net loss of $4.86 billion, or $4.45 per diluted share
Operating cash flow of $1.56 billion versus $15.18 billion for the prior year
“During fiscal 2023, amid a challenging environment for the memory and storage industry, Micron sustained technology leadership, launched asignificant number of leading-edge products, and took decisive actions on supply and cost,” said Micron Technology President and CEO Sanjay
Mehrotra. “Our 2023 performance positions us well as a market recovery takes shape in 2024, driven by increasing demand and disciplined supply.
We look forward to record industry TAM revenue in 2025 as AI proliferates from the data center to the edge.”
Quarterly Financial Results
GAAP(1)(in millions, except per share amounts)
FQ4-23
Revenue
Gross margin
percent of revenue
Operating expenses
Operating income (loss)
percent of revenue
Net income (loss)
Diluted earnings (loss) per share$

Non-GAAP(2)FQ3-23

4,010
$
(435)
(10.8%)
1,037(1,472)(36.7%)(1,430)(1.31)

FQ4-22

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

FQ4-23

6,643
2,622
39.5%
1,101
1,521
22.9%
1,492
1.35

$

FQ3-23

4,010
$
(366)
(9.1%)
842(1,208)(30.1%)(1,177)(1.07)

FQ4-22

3,752
$
(603)
(16.1%)
866(1,469)(39.2%)(1,565)(1.43)

6,643
2,676
40.3%
1,014
1,662
25.0%
1,621
1.45

Annual Financial Results
GAAP(1)(in millions, except per share amounts)
FY 23
Revenue
Gross margin
percent of revenue
Operating expenses
Operating income (loss)
percent of revenue
Net income (loss)
Diluted earnings (loss) per share$

15,540$(1,416)(9.1%)
4,329(5,745)(37.0%)(5,833)(5.34)

Non-GAAP(2)FY 2230,75813,898
45.2%
4,196
9,702
31.5%
8,687
7.75

FY 23
$

15,540$(1,196)(7.7%)
3,623(4,819)(31.0%)(4,862)(4.45)

FY 22
30,758
14,11345.9%
3,832
10,281
33.4%
9,475
8.35

Investments in capital expenditures, net(2) were $1.01 billion for the fourth quarter of 2023 and $7.01 billion for the full year of 2023, which resulted inadjusted free cash flows(2) of negative $758 million for the fourth quarter of 2023 and negative $5.45 billion for the full year of 2023. Micron ended theyear with cash, marketable investments, and restricted cash of $10.52 billion. On September 27, 2023, Micron’s Board of Directors declared aquarterly dividend of $0.115 per share, payable in cash on October 25, 2023, to shareholders of record as of the close of business on October 10,

2023.
Business Outlook
The following table presents Micron’s guidance for the first quarter of 2024:
FQ1-24
Revenue
Gross margin
Operating expenses
Diluted earnings (loss) per share

GAAP(1) Outlook

Non-GAAP(2) Outlook$4.40 billion ± $200 million(6.0%) ± 2.0%
$1.01 billion ± $15 million($1.24) ± $0.07$4.40 billion ± $200 million(4.0%) ± 2.0%$900 million ± $15 million($1.07) ± $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, September 27, 2023 at 2:30 p.m. Mountain Time to discuss its fourth quarter financial results andprovide forward-looking guidance for its first 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 the
documents 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) 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)
4th Qtr.
August 31,
2023
Revenue
Cost of goods sold
Gross margin
Research and development
Selling, general, and administrative
Restructure and asset impairments
Other operating (income) expense, net

$

4,010
4,445

3rd Qtr.
June 1,
2023
$

3,752
4,420

4th Qtr.
September 1,
2022
$

6,643
4,021

Year Ended
August 31,
September 1,
2023
2022
$

15,54016,956$30,75816,860

(435)

(668)

2,622

(1,416)

13,898

719
219
4
95

758
219
68
48

839
280
5
(23)

3,114
920
171
124

3,116
1,066
48
(34)

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(1,472)(1,761)

1,521(5,745)

9,702

134
(129)
9

127
(119)
—

54
(45)
23

468
(388)
7

96
(189)
(38)

(1,458)(1,753)

1,553(5,658)

9,571

24
4

(139)
(4)

(56)
(5)

(177)
2

(888)
4

Net income (loss)$(1,430)$(1,896)

$

1,492

$

(5,833)$

8,687

Earnings (loss) per share
Basic
Diluted$(1.31)(1.31)$(1.73)(1.73)

$

1.36
1.35

$

(5.34)(5.34)

$

7.81
7.75

Number of shares used in per share calculations
Basic
Diluted

1,095
1,095

1,094
1,094

1,097
1,106

1,093
1,093

1,112
1,122

MICRON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS(In millions)(Unaudited)
August 31,
2023

As of
AssetsCash 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

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$

21,244844
37,928
666
404
756
1,150
1,262

Other noncurrent assets
Total assets

8,577
1,017
2,443
8,387
820

June 1,2023

September 1,
2022

9,298
1,054
2,429
8,238
715

$

21,734973
38,727
655
410
708
1,252
1,221

8,262
1,069
5,130
6,663
657
21,781
1,647
38,549
678
421
702
1,228
1,277

$

64,254$65,680$66,283

$

3,958
278
529

$

4,177
259
668

$

6,090
103
1,346

Other noncurrent liabilities

4,765
13,052
603
727
987

5,104
12,986
603
632
950

7,539
6,803
610
589
835

Total liabilities

20,134

20,275

16,376124
11,03640,824(7,552)

124
10,782
42,391(7,552)

123
10,19747,274(7,127)

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

Total liabilities and equity

(312)

(340)

(560)

44,12045,40549,90764,254$65,680$66,283

MICRON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)(Unaudited)
August 31,
2023

For the year 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
Goodwill impairment
Restructure and asset impairments
Loss on debt repurchases and conversions
Change in operating assets and liabilities:
Receivables
Inventories
Accounts payable and accrued expenses$

September 1,
2022(5,833)

$

8,687

7,756
1,831
596
101
11
—

7,116
—
514
—
44
83

Other

2,763
(3,555)(2,104)(7)

190(2,179)744(18)

Net cash provided by operating activities

1,559

15,181(7,676)
(723)
1,566
710
25
—
(93)

(12,067)(1,770)
1,321
115
294
888
(366)

(6,191)(11,585)

6,716
(761)
(504)
(425)
(138)
95

2,000
(2,032)(461)(2,432)
(141)
86

4,983

(2,980)

(34)

(106)

317
8,339

510
7,829

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 debt
Repayments of debt
Payments of dividends to shareholders
Repurchases of common stock - repurchase program
Payments on equipment purchase contracts
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

$

8,656

$

8,339

MICRON TECHNOLOGY, INC.
NOTES
(Unaudited)
Inventories
In the third and second quarters of 2023, we recorded charges of $401 million and $1.43 billion, respectively, to cost of goods sold to write down the
carrying value of work in process and finished goods inventories to their estimated net realizable values (“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:
4th Qtr.
August 31,
2023
Provision to write down inventory to NRV
Lower costs from sale of inventory written down in priorperiods$

3rd Qtr.
June 1,
2023
— $

$

4th Qtr.
September 1,
2022

(401)

563

281

563 $

(120)

$

Year Ended
August 31,
September 1,
2023
2022
— $

$

(1,831)

—

844

— $

(987)

$

—
—

$

—

MICRON TECHNOLOGY, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES(In millions, except per share amounts)
4th Qtr.
August 31,
2023
GAAP gross margin
Stock-based compensation

3rd Qtr.
June 1,2023

4th Qtr.
September 1,
2022

Year Ended
August 31,
September 1,
2023
2022

$

(435)
64
5

$

(668)
60
5

$

2,622
49
5

$

(1,416)201
19$

13,898
193
22

Non-GAAP gross margin

$

(366)

$

(603)

$

2,676

$

(1,196)$

14,113

GAAP operating expenses
Stock-based compensation
Restructure and asset impairments
Goodwill impairment
Litigation settlement

$

1,037
(87)
(4)
(101)
—
(3)

$

1,093
(91)
(68)
—
(68)
—

$

1,101
(82)
(5)
—
—
—

$

4,329
(363)
(171)
(101)
(68)
(3)

$

4,196
(308)
(48)
—
—
(8)

Non-GAAP operating expenses

$

842

$

866

$

1,014

$

3,623

$

3,832

GAAP operating income (loss)
Stock-based compensation
Restructure and asset impairments
Goodwill impairment
Litigation settlement$(1,472)
151
4
101
—
8

$

(1,761)
151
68
—
68
5

$

1,521
131
5
—
—
5

$

(5,745)
564
171
101
68
22

$

9,702
501
48
—
—
30

Non-GAAP operating income (loss)$(1,208)$(1,469)

$

1,662

$

(4,819)$10,281GAAP net income (loss)
Stock-based compensation
Restructure and asset impairments
Goodwill impairment
Litigation settlement
Loss on debt repurchases and conversions
Other
Impact of Idaho income tax reform
Estimated tax effects of above and other tax
adjustments$(1,430)
151
4
101
—
—
7
—

$

(1,896)
151
68
—
68
—
7
—

$

1,492
131
5
—
—
—
11
—

$

(5,833)
564
171
101
68
—
32
—

$

8,687
501
48
—
—
83
61
189

Non-GAAP net income (loss)$(1,177)$(1,565)

$

1,621

$

(4,862)

$

9,475

Other

Other

Other

(10)

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

(18)

35

(94)

1,095
—

1,094
—

1,106
15

1,093
—

1,122
13

1,095

1,094

1,121

1,093

1,135

$

(1.31)
0.24$(1.73)
0.30

$

1.35
0.10

$

(5.34)
0.89

$

7.75
0.60

$

(1.07)$(1.43)$

1.45$(4.45)$

8.35

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

37

RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued
4th Qtr.
August 31,
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 contracts249

3rd Qtr.
June 1,2023$(1,461)
18
(26)
462

Amounts funded by partners$

Adjusted free cash flow

(758)

24

$

3,777

(1,561)
34
(36)
184

(1,007)

Investments in capital expenditures, net

4th Qtr.
September 1,
2022(1,355)$(3,613)30(9)
11(1,379)$Year Ended
August 31,
September 1,
2023
2022

196

$

(7,676)
92
(138)
710

(3,581)$

1,559(12,067)
117
(141)
115

(7,012)$(5,453)

15,181(11,976)$

3,205

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 excludes the following items in analyzing our operating results and understanding trends in our earnings:

Stock-based compensation;
Employee severance;
Gains and losses from settlements;
Restructure and asset impairments;
Goodwill impairment;
Gains and losses from debt repurchases and conversions; 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
FQ1-24GAAP Outlook

Revenue
Gross margin
Operating expenses
Diluted earnings (loss) per
share(1)$4.40 billion ± $200 million(6.0%) ± 2.0%
$1.01 billion ± $15 million($1.24) ± $0.07

Adjustments—
2.0% A$113 million
B$0.17

Non-GAAP Outlook$4.40 billion ± $200 million(4.0%) ± 2.0%$900 million ± $15 million

A, B, C($1.07) ± $0.07

Non-GAAP Adjustments(in millions)
A Stock-based compensation – cost of goods sold
A Other – cost of goods sold
B Stock-based compensation – research and development
B Stock-based compensation – sales, general, and administrative

$

66
4
69
44
(1)

$

182

C Tax effects of the above items and other tax adjustments(1) GAAP and non-GAAP earnings (loss) per share based on approximately 1.10 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: Samir Patodia Investor Relations spatodia@micron.com (408) 834-1947 Erica Rodriguez Pompen Media Relations epompen@micron.com(408) 834-1873