UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 2, 1994
----------------------
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
for the transition period from to
--------- --------
Commission File Number 1-10658
----------------------
MICRON TECHNOLOGY, INC.
-----------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 75-1618004
------------------------------- -----------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
2805 East Columbia Road, Boise, Idaho 83706-9698
---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code) (208) 368-4000
--------------
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for
the past 90 days.
Yes X No
---- ----
The number of outstanding shares of the registrant's Common Stock as
of June 17, 1994 was 101,714,045.
<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
MICRON TECHNOLOGY, INC.
Consolidated Balance Sheets
(Dollars in thousands)
<TABLE>
<CAPTION>
June 2, September 2,
1994 1993
(Unaudited)
<S> <C> <C>
-------------------------------------------------------------------
ASSETS
-------------------------------------------------------------------
Current assets:
Cash and equivalents $ 51,196 $ 47,523
Liquid investments 315,107 138,290
Receivables 210,317 154,686
Inventories 99,365 83,164
Prepaid expenses 2,940 1,493
Deferred income taxes 16,390 14,920
------------------------------------------------------------------
Total current assets 695,315 440,076
Product and process technology, net 50,693 69,703
Property, plant, and equipment, net 599,795 437,761
Other assets 18,329 18,116
------------------------------------------------------------------
Total assets $1,364,132 $965,656
==================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------------------------------------
Current liabilities:
Accounts payable and accrued
expenses $ 199,647 $154,963
Deferred income 10,151 5,501
Equipment purchase contracts 17,823 24,913
Current portion of long-term debt 29,179 25,407
------------------------------------------------------------------
Total current liabilities 256,800 210,784
Long-term debt 127,550 54,361
Deferred income taxes 42,238 46,216
Other liabilities 28,829 14,786
------------------------------------------------------------------
Total liabilities 455,417 326,147
------------------------------------------------------------------
Commitments and contingencies
------------------------------------------------------------------
Shareholders' equity:
Common stock, $.10 par value,
authorized 150,000,000 shares,
issued 101,698,000 and
40,099,000 shares, respectively 10,170 4,010
Additional paid-in capital 365,991 353,277
Retained earnings 534,003 282,468
Unamortized stock compensation (1,449) (246)
------------------------------------------------------------------
Total shareholders' equity 908,715 639,509
------------------------------------------------------------------
Total liabilities and
shareholders' equity $1,364,132 $965,656
==================================================================
</TABLE>
See accompanying notes to consolidated financial statements.
1
<PAGE>
MICRON TECHNOLOGY, INC.
Consolidated Statements of Operations
(Dollars in thousands, except for per share data)
(Unaudited)
<TABLE>
<CAPTION>
Quarter Ended
June 2, June 3,
1994 1993
-------------------------------------------------------------------
<S> <C> <C>
Net sales $ 426,392 $214,926
-------------------------------------------------------------------
Costs and expenses:
Cost of goods sold 206,967 132,323
Selling, general, and
administrative 35,773 21,061
Research and development 22,933 14,685
-------------------------------------------------------------------
Total costs and expenses 265,673 168,069
-------------------------------------------------------------------
Operating income 160,719 46,857
Interest (income) expense, net (2,293) 776
-------------------------------------------------------------------
Income before income taxes 163,012 46,081
Income tax provision 58,685 16,589
-------------------------------------------------------------------
Net income $ 104,327 $ 29,492
===================================================================
Earnings per share:
Primary $0.99 $0.29
Fully diluted 0.99 0.29
Number of shares used in per share
calculations:
Primary 105,630,000 101,400,000
Fully diluted 105,690,000 102,208,000
Cash dividend declared per share $0.05 --
</TABLE>
See accompanying notes to consolidated financial statements.
2
<PAGE>
MICRON TECHNOLOGY, INC.
Consolidated Statements of Operations
(Dollars in thousands, except for per share data)
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
June 2, June 3,
1994 1993
<S> <C> <C>
-------------------------------------------------------------------
Net sales $1,136,989 $522,304
-------------------------------------------------------------------
Costs and expenses:
Cost of goods sold 577,660 353,836
Selling, general, and
administrative 102,958 60,906
Research and development 55,981 40,181
-------------------------------------------------------------------
Total costs and expenses 736,599 454,923
-------------------------------------------------------------------
Operating income 400,390 67,381
Interest (income), net (3,732) 2,969
-------------------------------------------------------------------
Income before income taxes 404,122 64,412
Income tax provision 145,484 23,188
-------------------------------------------------------------------
Net income $ 258,638 $ 41,224
===================================================================
Earnings per share:
Primary $2.48 $0.41
Fully diluted 2.47 0.41
Number of shares used in per share
calculations:
Primary 104,116,000 100,101,000
Fully diluted 104,905,000 100,932,000
Cash dividends declared per share $0.07 $0.02
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE>
MICRON TECHNOLOGY, INC.
Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
June 2, June 3,
1994 1993
<S> <C> <C>
--------------------------------------------------------------------
Cash flows from operating activities:
Net income $ 258,638 $ 41,224
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 100,852 84,168
Amortization 39,232 18,664
Increase in receivables (55,631) (29,915)
Increase in inventories (16,201) (13,649)
Increase in accounts payable and accrued
expenses 44,684 44,064
Other 18,599 11,891
--------------------------------------------------------------------
Net cash provided by operating activities 390,173 156,447
--------------------------------------------------------------------
Cash flows from investing activities:
Purchase of investments (272,519) (164,608)
Proceeds from sale and maturity of
investments 94,961 80,344
Property, plant, and equipment
expenditures (176,569) (52,250)
Purchase of product and process technology (18,000) (200)
Other 1,072 (472)
---------------------------------------------------------------------
Net cash used for investing activities (371,055) (137,186)
---------------------------------------------------------------------
Cash flows from financing activities:
Proceeds from issuance of debt 117,183 41,651
Payments on equipment purchase contracts (94,039) (44,170)
Repayments of debt (41,349) (49,198)
Proceeds from issuance of common stock 10,239 14,230
Payment of Dividends (7,096) (1,941)
Other (383) (245)
---------------------------------------------------------------------
Net cash used for financing activities (15,445) (39,673)
---------------------------------------------------------------------
Net increase (decrease) in cash and
equivalents 3,673 (20,412)
Cash and equivalents at beginning of period 47,523 35,733
---------------------------------------------------------------------
Cash and equivalents at end of period $ 51,196 $ 15,321
=====================================================================
Supplemental disclosures:
Income taxes paid, net $ (138,022) (7,676)
Interest paid (4,527) (4,750)
Noncash investing and financing activities:
Equipment acquisitions on contracts payable
and capital leases 86,949 50,256
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE>
Notes to Consolidated Financial Statements
(All tabular dollar amounts are stated in thousands)
1. Unaudited Interim Financial Statements
In the opinion of management, the accompanying unaudited
consolidated financial statements contain all adjustments necessary
to present fairly the consolidated financial position of Micron
Technology, Inc., and subsidiaries (the "company"), and their
consolidated results of operations and cash flows.
This report on Form 10-Q for the quarter and nine months ended
June 2, 1994 should be read in conjunction with the company's Annual
Report to Shareholders and/or Form 10-K for the year ended September
2, 1993.
2. Receivables
<TABLE>
<CAPTION>
June 2, September 2,
1994 1993
----------- ------------
<S> <C> <C>
Trade receivables $ 210,883 $155,010
Other 8,891 7,145
Allowance for returns and
discounts (7,344) (5,680)
Allowance for doubtful accounts (2,113) (1,789)
----------- -----------
$ 210,317 $154,686
=========== ===========
3. Inventories
June 2, September 2,
1994 1993
----------- ------------
Finished goods $ 8,221 $ 7,343
Work in progress 56,992 52,473
Raw materials and supplies 34,152 23,348
----------- ------------
$ 99,365 $ 83,164
=========== ============
5
<PAGE>
Notes to Consolidated Financial Statements, continued
4. Product and process technology, net
June 2, September 2,
1994 1993
------------ ------------
Product and process technology,
at cost $ 148,297 $129,221
Less accumulated amortization (97,604) (59,518)
------------ ----------
$ 50,693 $ 69,703
============ ==========
5. Property, plant, and equipment, net
June 2, September 2,
1994 1993
---------- ------------
Land $ 7,968 $ 7,483
Buildings 235,554 217,655
Machinery and equipment 762,205 578,810
Construction in progress 67,226 24,667
---------- --------
1,072,953 828,615
Less accumulated depreciation
and amortization (473,158) (390,854)
---------- --------
$ 599,795 $437,761
========== ========
6. Accounts payable and accrued expenses
June 2, September 2,
1994 1993
---------- ------------
Accounts payable $ 51,031 $ 34,740
Salaries, wages, and benefits 47,646 28,829
Product and process technology 46,236 45,932
Income taxes payable 33,587 30,581
Commissions 5,429 4,675
Other 15,718 10,206
---------- --------
$ 199,647 $154,963
========== ========
6
<PAGE>
Notes to Consolidated Financial Statements, continued
7. Long-term debt
June 2, September 2,
1994 1993
------------ ------------
Notes payable in monthly
installments through May
1999, weighted average interest
rate of 7.30% and 8.24%,
respectively $ 117,595 $31,174
Capitalized lease obligations
payable in monthly installments
through April 1998, weighted
average interest rate of 7.94%
and 8.79%, respectively 13,200 28,550
Noninterest bearing obligation,
due June 1997, original face
amount $19.8 million (net of
discount based on imputed
interest rate of 6.50%) 16,357 --
Noninterest bearing obligation,
due in annual installments
through November 1994, original
face amount of $50.0 million
(net of discount based on
imputed interest rate of 10.25%) 9,577 18,775
Noninterest bearing obligation,
paid January 1994, (net of
discount based on imputed
interest rate of 7.41%) -- 1,269
---------- -------
156,729 79,768
Less current portion (29,179) (25,407)
---------- -------
$ 127,550 $54,361
=========== =======
</TABLE>
8. Earnings per share
Earnings per share is computed using the weighted average number
of common and common equivalent shares outstanding. Common
equivalent shares result from the assumed exercise of outstanding
stock options and affect earnings per share when they have a dilutive
effect.
On March 1, 1994, the company's board of directors announced a
five-for-two stock split, effected in the form of a stock dividend,
to shareholders of record on April 1, 1994. A total of 60,942,000
additional shares were issued in conjunction with the stock split.
The company distributed cash in lieu of fractional shares resulting
from the stock split. The company's par value of $0.10 per share
remained unchanged. As a result, $6.1 million was transferred from
additional paid-in capital to common stock. All share and per share
amounts have been restated to reflect retroactively the stock split.
7
<PAGE>
Notes to Consolidated Financial Statements, continued
9. Income taxes
Effective September 3, 1993, the company adopted Statement of
Financial Accounting Standards (SFAS) No. 109, "Accounting for Income
Taxes." Adoption of SFAS No. 109 did not have a material effect on
the company's financial position or results of operations. The
estimated effective income tax rate for all periods presented was
36%.
The approximate tax effect of temporary differences and
carryforwards which give rise to the net deferred tax asset and
liability are as follows:
<TABLE>
<CAPTION>
June 2,
1994
---------
<S> <C>
Current deferred tax asset:
Accrued compensation 3,831
Deferred income 2,136
Inventory 2,062
Other 8,361
--------
Net deferred tax asset $ 16,390
========
Noncurrent deferred tax liability:
Excess tax over book depreciation $(47,911)
Deferred internal patent charges (2,282)
Product and process technology
amortization 6,912
Accrued compensation 4,371
Other (3,328)
--------
Net deferred tax liability $(42,238)
========
</TABLE>
10. Commitments
As of June 2, 1994, the company had commitments of approximately
$219 million for equipment purchases and $82 million for the
construction of buildings.
8
<PAGE>
Notes to Consolidated Financial Statements, continued
11. Contingencies
Periodically, the company is made aware that technology used by
the company in the manufacture of some or all of its products may
infringe on product or process technology rights held by others. The
company has accrued a liability and charged operations for the
estimated costs of settlement or adjudication of asserted and
unasserted claims for infringement prior to the balance sheet date.
Management can give no assurance that the amounts accrued have been
adequate and cannot estimate the range of additional possible loss,
if any, from resolution of these uncertainties. Resolution of
whether the company's manufacture of products has infringed on valid
rights held by others may have a material adverse effect on the
company's financial position or results of operations, and may
require material changes in production processes and products.
The company is a party to various legal actions arising out of
the normal course of business, none of which is expected to have a
material effect on the company's financial position or results of
operations.
9
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
All references are to the company's fiscal periods ended June 2,
1994 and June 3, 1993, unless otherwise indicated. All tabular
dollar amounts are stated in thousands.
Net sales for the third quarter of 1994 were $426 million,
compared to net sales of $215 million for the same quarter a year
ago. Net sales for the first nine months of 1994 totaled $1,137
million, compared to $522 million for the first nine months of 1993.
The company reported net income of $104 million, or $0.99 per
fully diluted share, for the third quarter of 1994, and net income of
$259 million, or $2.47 per fully diluted share for the first nine
months of 1994. For the third quarter of 1993, the company reported
net income of $29 million, or $0.29 per fully diluted share, and for
the first nine months of 1993 reported net income of $41 million, or
$0.41 per fully diluted share.
<TABLE>
<CAPTION>
Results of Operations
Third Quarter Nine Months Ended
------------------------ --------------------------
1994 % Change 1993 1994 % Change 1993
------------------------ --------------------------
<S> <C> <C> <C> <C> <C> <C>
Net sales $426,392 98.4% $214,926 $1,136,989 117.7% $522,304
</TABLE>
Net sales for the third quarter and first nine months of fiscal
1994 were significantly higher than for the comparable periods of
1993 principally due to favorable market conditions and higher
volumes of semiconductor memory sold. Memory volumes were generally
higher as a result of a combination of increased wafer output,
improved yields, shrinks of existing products, and transitions to
higher density memory products.
The company has benefited from supply and demand relationships
resulting in relatively stable product pricing for approximately the
past two years. Pricing per megabit for DRAM products has
historically declined approximately 30% per year on a long-term trend
line. The company's net sales would have been substantially lower
had actual average selling prices followed the long-term trend line
in the third quarter and first nine months of 1994. Several
competitors, both foreign and domestic, are reportedly adding
significant semiconductor manufacturing capacity. Excess supply
would cause a rapid fall in product pricing to, or below, the long-
term declining trend line.
10
<PAGE>
The company's principal product for the first nine months of
1994 was the 4 Meg DRAM. Volumes for specialty DRAMs decreased in
the third quarter and first nine months of 1994 compared to the
corresponding periods of 1993 as the company dedicated more
production resources to the 4 Meg DRAM. SRAM net sales were higher
in both the third quarter and first nine months of 1994 as compared
to the corresponding periods of 1993, but declined as a percentage of
total net sales to approximately 7% and 8% for the third quarter and
first nine months of 1994, respectively. SRAM net sales for the
third quarter and first nine months of 1993 were 14% and 16% of total
net sales, respectively.
<TABLE>
<CAPTION>
Third Quarter Nine Months Ended
------------------------ ------------------------
1994 % Change 1993 1994 % Change 1993
------------------------ ------------------------
<S> <C> <C> <C> <C> <C> <C>
Cost of goods sold $206,967 56.4% $132,323 $577,660 63.3% $353,836
Gross margin % 51.5% 38.4% 49.2% 32.3%
</TABLE>
The company's overall gross margin percentage improved
significantly for both the third quarter and first nine months of
1994 compared to the corresponding periods of 1993 due to relatively
stable average selling prices and reductions in cost per unit of
memory sold for DRAM products. Reductions in cost per unit sold were
realized primarily from a combination of increased wafer output,
yield improvements, die shrinks, and transition to higher density
memory products.
The company has been producing a limited quantity of 400 mil 16
Meg DRAMs for internal qualification and customer sampling purposes.
No major customer sales in large quantities have occurred to date.
The company continues to develop a reduced die size 16 Meg DRAM in
a 300 mil package which is expected to be the preferred market package.
Due to currently lower manufacturing yields associated with the 16
Meg DRAM as compared to the company's more mature products, a rapid
transition to the 16 Meg DRAM as the industry's primary product without
significant improvement in the company's manufacturing yields would
have a negative impact on the results of operations.
Sales of personal computers accounted for approximately 6% and
7% of total net sales for the third quarter and first nine months of
1994, respectively. Gross margin percentages for personal computer
sales are substantially lower than for the company's other products.
Should sales of personal computers increase as a percentage of total
net sales, the company's overall gross margin percentage would
decrease.
Cost of goods sold includes estimated costs of settlement or
adjudication of asserted and unasserted claims for patent
infringement prior to the balance sheet date, and costs of product
and process technology licensing arrangements. The charges for
product and process technology have remained relatively constant as a
percentage of net sales across all periods presented. Future product
and process technology charges may increase, however, as a result of
claims that may be asserted in the future. See "Certain Factors".
11
<PAGE>
<TABLE>
<CAPTION>
Third Quarter Nine Months Ended
------------------------ ------------------------
1994 % Change 1993 1994 % Change 1993
------------------------ ------------------------
<S> <C> <C> <C> <C> <C> <C>
Selling, general,
and administrative $ 35,773 69.9% $21,061 $102,958 69.0% $ 60,906
as a % of net sales 8.4% 9.8% 9.1% 11.7%
</TABLE>
Selling, general, and administrative expenses increased
significantly in the third quarter and first nine months of 1994 over
the comparable periods of 1993, primarily as a result of higher
personnel costs. The higher personnel costs were primarily due to
the company's employee compensation program which provides incentives
relating directly to the financial performance of the company. Also
contributing to the increase in selling, general, and administrative
expense for the first nine months of 1994 compared to the first nine
months of 1993 were increased costs incurred in conjunction with the
company's action before the International Trade Commission and patent
litigation, each of which have since been settled, increased sales
commissions based on a higher level of net sales, and a higher level
of state sales tax.
<TABLE>
<CAPTION>
Third Quarter Nine Months Ended
------------------------ ------------------------
1994 % Change 1993 1994 % Change 1993
------------------------ ------------------------
<S> <C> <C> <C> <C> <C> <C>
Research and
development $ 22,933 56.2% $ 14,685 $ 55,981 39.3% $ 40,181
as a % of net sales 5.4% 6.8% 4.9% 7.7%
</TABLE>
Research and development expenses, which vary primarily with the
number of wafers and personnel dedicated to new product and process
development, were higher, but decreased as a percentage of net sales,
for the third quarter and first nine months of 1994 compared to the
corresponding periods of 1993. Efforts in the current quarter were
focused primarily on development of the 16 Meg DRAM, and design and
development of the 64 Meg DRAM and the 4 Meg and 16 Meg SRAMs.
Development of VRAMs beyond the company's current 2 Meg generation
has been terminated as the company pursues more cost-effective
alternatives for graphics applications. The company expects research
and development expense for fiscal 1994 to be significantly higher
than fiscal 1993 as additional resources are dedicated to development
of the 16 Meg DRAM shrink and design and development of the 64 Meg
and 256 Meg DRAMs as well as design and development of new technologies
including radio frequency identification products, non-volatile
semiconductor memory devices, and field emission flat panel displays.
<TABLE>
<CAPTION>
Third Quarter Nine Months Ended
------------------------ ------------------------
1994 % Change 1993 1994 % Change 1993
------------------------ ------------------------
<S> <C> <C> <C> <C> <C> <C>
Income tax
provision $ 58,685 254% $ 16,589 $145,484 527% $23,188
</TABLE>
Effective September 3, 1993, the company adopted Statement of
Financial Accounting Standards (SFAS) No. 109, "Accounting for Income
Taxes." Adoption of SFAS No. 109 did not have a material effect on
the company's financial position or results of operations. The
effective tax rate for the third quarter and first nine months of
1994 and 1993 was 36%.
12
<PAGE>
Liquidity and Capital Resources
The company had cash and liquid investments of $366 million as
of June 2, 1994, representing an increase of $180 million during the
first nine months of 1994. The company's principal sources of
liquidity during the first nine months of 1994 were cash flows from
operations of $390 million, issuance of long-term debt of $117
million, equipment financing of $87 million, and proceeds of $10
million from the issuance of common stock in connection with the
company's employee stock purchase and stock option plans. The
principal uses of funds in the first nine months of 1994 were $177
million for property, plant, and equipment, $94 million for
repayments of equipment contracts, $41 million for payments on long-
term debt, $18 million for acquisition of product and process
technology, and $7 million for payments of cash dividends.
As of June 2, 1994, the company had commitments of approximately
$219 million for equipment purchases and approximately $82 million
for the construction of buildings. Anticipated capital expenditures
include remodels and upgrades of existing fabrication facilities and
equipment, and the construction of a central ion implant facility, a
new developmental wafer fabrication facility, and an additional
central utilities plant. Completion of these and future projects as
currently anticipated will require substantial cash resources
including significant payments out of the company's cash flow from
operations through the upcoming fiscal year.
The company's bank credit agreement provides for borrowings of
up to $120 million under a revolving loan expiring January 1997.
Substantially all of the tangible assets of the company's
semiconductor memory operations not otherwise pledged as collateral
for other notes payable and capital leases are pledged as collateral
under the agreement. The agreement contains certain financial
covenants. As of June 2, 1994, the company had no borrowings
outstanding under the agreement.
The company believes continuing investments in manufacturing
technology, capital equipment, research and development, and product
and process technology are necessary to support future growth,
achieve operating efficiencies, and maintain product quality.
Although external sources of cash have been required historically to
supplement the company's cash flows from operations to fund these
ongoing investments, the company currently expects that it will be
able to fund its near-term liquidity needs through cash flows from
operations, existing cash and liquid investment balances, and
equipment financings. Depending on overall market conditions, the
company may borrow amounts available under the bank credit agreement
or pursue other external sources of liquidity.
Certain Factors
The semiconductor memory industry is characterized by rapid
technological change, frequent product introductions and
enhancements, difficult product transitions, relatively short product
life cycles, and volatile market conditions as evidenced by
significantly fluctuating product pricing. These circumstances
historically have made the semiconductor industry highly cyclical,
13
<PAGE>
particularly in the market for DRAMs, which are the company's primary
products. The company has recently benefited from supply and demand
relationships resulting in relatively stable product pricing.
However, the company expects product pricing to return to the long-
term historical declining trend line at some point in the future.
The company experiences intense competition from a number of
substantially larger foreign and domestic companies, which are
reportedly adding significant semiconductor manufacturing capacity.
Several of these new facilities use 8-inch wafers which contain
greater than 70% more surface area than the company's exclusively
used 6-inch wafer facility. Use of 8-inch wafers could result in a
comparative cost advantage. A substantial increase in overall
industry production capacity, adverse market conditions, and currency
fluctuations resulting in a strengthening dollar against the yen,
could result in downward pricing pressure. A decline in the current
favorable product pricing could have a material adverse effect on the
company's results of operations. Historically, severe downward
movements in product pricing have resulted in decreases in the market
value for the company's stock.
The manufacture of the company's products is a complex process
and involves a number of precise steps, including wafer fabrication,
assembly in a variety of packages, burn-in, and final test. From
time to time, the company has experienced volatility in its
manufacturing yields, as it is not unusual to encounter difficulties
in ramping shrink versions of existing devices or new generation
devices to commercial volumes. The company continues to develop a
reduced die size 16 Meg DRAM in a 300 mil package which is expected
to be the preferred market package. The company's net sales and
operating results are highly dependent on increasing yields at an
acceptable rate and to an acceptable level, of which there can be no
assurance. Future results of operations may be adversely impacted if
the company is unable to transition to future generation products in
a timely fashion or at gross margin rates comparable to the company's
current primary products.
Periodically, the company is made aware that technology used by
the company in the manufacture of some or all of its products may
infringe on product or process technology rights held by others. The
company has accrued a liability and charged operations for the
estimated costs of settlement or adjudication of asserted and
unasserted claims for infringement prior to the balance sheet date.
Management can give no assurance that the amounts accrued have been
adequate and cannot estimate the range of additional possible loss,
if any, from resolution of these uncertainties. Resolution of
whether the company's manufacture of products has infringed on valid
rights held by others may have a material adverse effect on the
company's financial position or results of operations, and may
require material changes in production processes and products.
14
<PAGE>
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a) INDEX OF EXHIBITS
<TABLE>
<CAPTION>
Exhibit
Number Description of Exhibit
------- --------------------------------
<C> <S>
11 Computation of per share earnings
for the quarters and nine month
periods ended June 2, 1994, and
June 3, 1993
</TABLE>
b) The registrant did not file any Reports on Form 8-K during
the quarter ended June 2, 1994.
15
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
Micron Technology, Inc.
---------------------------------
(Registrant)
Dated: June 20, 1994 Reid N. Langrill
----------------------------------
Vice President Finance, Treasurer,
and Chief Financial Officer (Principal
Financial and Accounting Officer)
16
MICRON TECHNOLOGY, INC.
Exhibit 11
Computation of Per Share Amounts
(Amounts in thousands except for per share amounts)
<TABLE>
<CAPTION>
Quarter Ended
June 2, June 3,
1994 1993
------- -------
<S> <C> <C>
PRIMARY
Weighted average shares
outstanding 101,575 99,149
Stock options using average
market price 4,055 2,251
--------- ---------
Total shares 105,630 101,400
========= =========
Net income $104,327 $29,491
========= =========
Per share amount $0.99 $0.29
========= =========
FULLY DILUTED
Weighted average shares
outstanding 101,575 99,149
Stock options using greater of
average or ending market price 4,115 3,059
--------- ---------
Total shares 105,690 102,208
========= =========
Net income $104,327 $29,491
========= =========
Per share amount $0.99 $0.29
========= =========
</TABLE>
<PAGE>
MICRON TECHNOLOGY, INC.
Exhibit 11
Computation of Per Share Amounts
(Amounts in thousands except for per share amounts)
<TABLE>
<CAPTION>
Nine Months Ended
June 2, June 3,
1994 1993
-------- -------
<S> <C> <C>
PRIMARY
Weighted average shares
outstanding 100,999 98,235
Stock options using average
market price 3,117 1,866
--------- -------
Total shares 104,116 100,101
========= =======
Net income $258,638 $41,224
========= =======
Per share amount $2.48 $0.41
========= =======
FULLY DILUTED
Weighted average shares
outstanding 100,999 98,235
Stock options using greater of
average or ending market price 3,906 2,697
--------- --------
Total shares 104,905 100,932
========= ========
Net income $258,638 $41,224
========= ========
Per share amount $2.47 $0.41
========= ========
</TABLE>
