FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 1, 1995
------------------------------------------
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
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Micron Technology, Inc.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 75-1618004
------------------------------- -------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
8000 S. Federal Way, P.O. Box 6, Boise, Idaho 83707-0006
-------------------------------------------------------------------
(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 the 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 15, 1995 was 206,058,586.
<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
MICRON TECHNOLOGY, INC.
Consolidated Balance Sheets
(Dollars in millions, except for par value amount)
<TABLE>
<CAPTION>
June 1, September 1,
As of 1995 1994
- -------------------------------------------------------------------
(Unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and equivalents $ 118.2 $ 78.4
Liquid investments 505.5 354.6
Receivables 342.5 235.7
Inventories 197.3 101.1
Prepaid expenses 7.6 3.3
Deferred income taxes 35.1 20.1
-------- --------
Total current assets 1,206.2 793.2
Product and process technology, net 42.6 48.2
Property, plant, and equipment, net 1,100.3 663.5
Other assets 54.9 24.8
-------- --------
Total assets $2,404.0 $1,529.7
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 415.7 $ 200.2
Deferred income 13.3 13.0
Equipment purchase contracts 57.0 31.2
Current portion of long-term debt 25.9 29.8
-------- --------
Total current liabilities 511.9 274.2
Long-term debt 162.4 124.7
Deferred income taxes 66.4 54.1
Other liabilities 45.7 27.4
-------- --------
Total liabilities 786.4 480.4
-------- --------
Commitments and contingencies
Shareholders' equity:
Common stock, $0.10 par value,
authorized 300.0 million shares,
issued and outstanding 206.0
million and 203.8 million
shares, respectively 20.6 10.2
Additional paid-in capital 387.7 369.7
Retained earnings 1,213.3 670.8
Unamortized stock compensation (4.0) (1.4)
-------- --------
Total shareholders' equity 1,617.6 1,049.3
-------- --------
Total liabilities and shareholders'
equity $2,404.0 $1,529.7
======== ========
</TABLE>
See accompanying notes to consolidated financial statements.
1
<PAGE>
MICRON TECHNOLOGY, INC.
Consolidated Statements of Operations
(Amounts in millions, except for per share data)
(Unaudited)
<TABLE>
<CAPTION>
June 1, June 2,
For the quarter ended 1995 1994
- -------------------------------------------------------------------
<S> <C> <C>
Net sales $ 761.2 $ 426.4
-------- --------
Costs and expenses:
Cost of goods sold 357.2 207.0
Selling, general, and administrative 54.4 35.8
Research and development 33.6 22.9
-------- --------
Total costs and expenses 445.2 265.7
-------- --------
Operating income 316.0 160.7
Gain from merger transaction 29.0 --
Interest income, net 7.4 2.3
-------- --------
Income before income taxes 352.4 163.0
Income tax provision 132.2 58.7
-------- --------
Net income $ 220.2 $ 104.3
======== ========
Earnings per share:
Primary $1.02 $0.49
Fully diluted 1.02 0.49
Number of shares used in per share
calculations:
Primary 215.1 211.3
Fully diluted 215.8 211.4
Cash dividend declared per share $0.05 $0.025
</TABLE>
See accompanying notes to consolidated financial statements.
2
<PAGE>
MICRON TECHNOLOGY, INC.
Consolidated Statements of Operations
(Amounts in millions, except for per share data)
(Unaudited)
<TABLE>
<CAPTION>
June 1, June 2,
For the nine months ended 1995 1994
- -------------------------------------------------------------------
<S> <C> <C>
Net sales $1,924.7 $1,137.0
-------- --------
Costs and expenses:
Cost of goods sold 849.2 577.7
Selling, general, and administrative 131.6 103.0
Research and development 89.5 55.9
-------- --------
Total costs and expenses 1,070.3 736.6
-------- --------
Operating income 854.4 400.4
Gain from merger transaction 29.0 --
Interest income, net 17.4 3.7
-------- --------
Income before income taxes 900.8 404.1
Income tax provision 337.8 145.5
-------- --------
Net income $ 563.0 $ 258.6
======== ========
Earnings per share:
Primary $2.65 $1.24
Fully diluted 2.62 1.23
Number of shares used in per share
calculations:
Primary 212.7 208.2
Fully diluted 214.7 209.8
Cash dividend declared per share $0.10 $0.035
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE>
MICRON TECHNOLOGY, INC.
Consolidated Statements of Cash Flows
(Dollars in millions)
(Unaudited)
<TABLE>
<CAPTION>
June 1, June 2,
For the nine months ended 1995 1994
- -------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 563.0 $ 258.6
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation 137.6 100.9
Gain from merger transaction (29.0) --
Change in assets and liabilities, net
of effects of merger transaction:
Increase in receivables (84.9) (55.6)
Increase in inventories (68.5) (16.2)
Increase in accounts payable and
accrued expenses 162.8 44.7
Other 12.7 57.8
-------- --------
Net cash provided by operating
activities 693.7 390.2
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (551.1) (272.5)
Proceeds from sale and maturity of
investments 403.7 94.9
Proceeds from sale of equipment 13.3 2.0
Expenditures for property, plant, and
equipment (451.7) (176.6)
Cash acquired in merger transaction 14.0 --
Other 0.5 (18.9)
-------- --------
Net cash used for investing activities (571.3) (371.1)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on equipment purchase contracts (116.2) (94.0)
Repayments of debt (27.3) (41.3)
Proceeds from issuance of debt 59.7 117.2
Proceeds from issuance of common stock 13.8 10.2
Payment of dividends (10.2) (7.1)
Other (2.4) (0.4)
-------- --------
Net cash used for financing activities (82.6) (15.4)
-------- --------
Net increase in cash and equivalents 39.8 3.7
Cash and equivalents at beginning of
period 78.4 47.5
-------- --------
Cash and equivalents at end of period $ 118.2 $ 51.2
======== ========
SUPPLEMENTAL DISCLOSURES
Income taxes paid, net $ (310.6) $ (138.0)
Interest paid (7.0) (4.5)
Noncash investing and financing
activities:
Equipment acquisitions on contracts
payable and capital leases 142.0 86.9
Assets acquired, net of cash and
liabilities assumed in merger
transaction 26.0 --
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE>
Notes to Consolidated Financial Statements
(All tabular dollar amounts are stated in millions)
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. The
results of operations for the third fiscal quarter of 1995
reflect a $29.0 million nonrecurring pretax gain resulting from
the merger of Micron Computer, Inc., and Micron Custom
Manufacturing Services, Inc., with ZEOS International Ltd., which
was effective April 7, 1995. The third fiscal quarter of 1995
also reflects a $25.0 million pretax charge associated with
various contingencies for product and process technology rights.
This report on Form 10-Q for the quarter and nine months ended
June 1, 1995, should be read in conjunction with the Company's
Annual Report to Shareholders and/or Form 10-K for the year ended
September 1, 1994.
<TABLE>
2. Receivables June 1, September 1,
1995 1994
- -------------------------------------------------------------------
<S> <C> <C>
Trade receivables $ 340.4 $ 227.6
Other 14.2 15.9
Allowance for returns and discounts (6.5) (4.9)
Allowance for doubtful accounts (5.6) (2.9)
-------- --------
$ 342.5 $ 235.7
======== ========
3. Inventories June 1, September 1,
1995 1994
- -------------------------------------------------------------------
Finished goods $ 17.2 $ 5.2
Work in progress 95.6 64.2
Raw materials and supplies 84.5 31.7
-------- --------
$ 197.3 $ 101.1
======== ========
4. Product and process technology, net June 1, September 1,
1995 1994
- -------------------------------------------------------------------
Product and process technology, at
cost $ 150.7 $ 148.6
Less accumulated amortization (108.1) (100.4)
-------- --------
$ 42.6 $ 48.2
======== ========
5. Property, plant, and equipment, net June 1, September 1,
1995 1994
- -------------------------------------------------------------------
Land $ 21.5 $ 7.9
Buildings 346.4 260.0
Machinery and equipment 1,142.5 825.5
Construction in progress 173.0 68.7
-------- --------
1,683.4 1,162.1
Less accumulated depreciation and
amortization (583.1) (498.6)
-------- --------
$1,100.3 $ 663.5
======== ========
5
<PAGE>
Notes to Consolidated Financial Statements, continued
6. Accounts payable and accrued
expenses June 1, September 1,
1995 1994
- -------------------------------------------------------------------
Accounts payable $ 136.4 $ 55.3
Salaries, wages, and benefits 78.4 63.5
Dividends payable 10.3 --
Product and process technology 106.5 16.6
Income taxes payable 48.4 44.0
Other 35.7 20.8
-------- --------
$ 415.7 $ 200.2
======== ========
7. Long-term debt June 1, September 1,
1995 1994
- -------------------------------------------------------------------
Notes payable in periodic installments
through May 1999, weighted average
interest rate of 6.90% and 7.30 %,
respectively $ 94.0 $ 78.7
Notes payable, due at maturity ranging
from April 1996 to December 1997,
weighted average interest rate of
5.90% and 5.11%, respectively 50.0 37.0
Noninterest bearing obligations,
$19.8 million due June 1997 and
$20.5 million due December 1997,
original face amount of $40.3
million and $19.8 million,
respectively (net of discounts
based on imputed interest rates),
weighted average interest rate
of 6.90% and 6.50%, respectively 34.6 16.6
Capitalized lease obligations payable
in monthly installments through April
1998, weighted average interest rate
of 7.77% and 7.93%, respectively 9.7 12.4
Noninterest bearing obligation, paid
in November 1994, original face
amount of $50.0 million (net of
discount based on imputed interest
rate of 10.25%) -- 9.8
-------- --------
188.3 154.5
Less current portion (25.9) (29.8)
-------- --------
$ 162.4 $ 124.7
======== ========
</TABLE>
During the third quarter of 1995, the Company terminated its
bank credit agreement which provided for borrowings of up to
$120.0 million.
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. Share and per share amounts for the
third quarter and first nine months of fiscal 1995 have been
restated to reflect retroactively a 2 for 1 stock split effected
in the form of a stock dividend to shareholders of record on May
4, 1995.
9. Income taxes
During the second quarter of fiscal 1995, the Company changed
its estimate of the effective income tax rate for fiscal 1995 to
37.5% from 36.0%. The effective income tax rate principally
reflects the statutory corporate income tax rate and the net
effect of state taxation.
6
<PAGE>
Notes to Consolidated Financial Statements, continued
10. Commitments
As of June 1, 1995, the Company had commitments extending into
fiscal 1997 of approximately $614.8 million for equipment
purchases and $68.8 million for the construction of buildings.
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 has various product and
process technology agreements expiring in the remainder of 1995.
The Company is not able to predict whether these license
agreements can be renewed on terms acceptable to the Company.
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.
7
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
All period references are to the Company's fiscal periods ended
June 1, 1995, and June 2, 1994, unless otherwise indicated. Per
share amounts for the third quarter and first nine months of 1994
have been restated to reflect a 2 for 1 stock split effected in
the form of a stock dividend to shareholders of record on May 4,
1995. All tabular dollar amounts are stated in millions.
Net sales for the third quarter ended June 1, 1995, were $761
million, compared to net sales of $426 million for the same
quarter a year ago and $629 million for the second quarter of
1995. Net income for the third quarter of 1995 reached $220
million, or $1.02 per fully diluted share, as compared to $104
million, or $0.49 per fully diluted share, for the third quarter
of 1994, and as compared to $184 million, or $0.86 per fully
diluted share, for the second quarter of 1995. For the first
nine months of 1995, the Company reported net income of $563
million, or $2.62 per fully diluted share, on net sales of $1,925
million as compared to net income of $259 million, or $1.23 per
fully diluted share, on net sales of $1,137 million for the first
nine months of 1994.
The Board of Directors declared a $0.05 per share cash dividend
which was paid on June 14, 1995, to shareholders of record on
June 5, 1995.
Results of Operations
<TABLE>
<CAPTION>
Third Quarter Nine Months Ended
-------------------------- --------------------------
1995 Change 1994 1995 Change 1994
-------------------------- --------------------------
<S> <C> <C> <C> <C> <C> <C>
Net sales $ 761.2 78.5% $ 426.4 $1,924.7 69.3% $1,137.0
</TABLE>
Increased production of semiconductor memory and current
favorable market conditions enabled the Company to achieve strong
operating results for the third quarter and first nine months of
1995. Demand for the 4 Meg DRAM, the Company's largest volume
product, remained strong through the quarter and resulted in the
twelfth consecutive quarter of relatively stable pricing for DRAM
products. An extended period of stable pricing represents a
significant deviation above the semiconductor industry's
historical long-term trend line of declining per megabit pricing.
The Company is unable to predict if, when, or how quickly average
selling prices per megabit may return to the historical long-term
trend line. See "Certain Factors".
Megabit production of semiconductor memory in the third quarter
of 1995 was approximately 67% higher than the comparable quarter
of 1994, and 20% higher than the second quarter of 1995. The
higher volume of memory principally resulted from the Company's
ongoing transition to successive shrink versions of the 4 Meg
DRAM with higher potential die per wafer and from enhanced yields
for existing memory products. The level of total wafer output in
the third quarter of 1995 increased only slightly when compared
to both the third quarter of 1994 and the second quarter of 1995.
Sales of PC systems and custom board level products in the
third quarter of 1995 accounted for approximately 15% and 3%,
respectively, of total net sales, excluding the value of the
Company's memory components contained in such products, compared
to 3% and 5%, respectively, of total net sales during the third
quarter of 1994. Approximately 25% of net sales of PC systems
during the third quarter of 1995 were attributable to the
acquisition of ZEOS International, Ltd. ("ZEOS"), in the merger
transaction effected on April 7, 1995, which combined Micron
Computer, Inc., and Micron Custom Manufacturing Services, Inc.,
with and into ZEOS. The Company has an approximate 79% ownership
interest in the combined company, Micron Electronics, Inc.
8
<PAGE>
<TABLE>
<CAPTION>
Third Quarter Nine Months Ended
-------------------------- --------------------------
1995 Change 1994 1995 Change 1994
-------------------------- --------------------------
<S> <C> <C> <C> <C> <C> <C>
Cost of goods
sold $ 357.2 72.6% $ 207.0 $ 849.2 47.0% $ 577.7
Gross margin % 53.1% 51.5% 55.9% 49.2%
</TABLE>
The gross margin percentage for the third quarter of 1995
decreased slightly from the second quarter of 1995 as a result of
sales of PC systems comprising a higher percentage of total net
sales for the third quarter of 1995 compared to the second
quarter of 1995. The gross margin percentage on sales of PC
systems has historically been, and is likely to continue to be,
lower than the gross margin percentage for the Company's current
memory products. The gross margin percentage on sales of PC
systems during the third quarter of 1995 was approximately 10%.
Additionally, gross margin in the third quarter of 1995 was
reduced by a $25 million pretax charge associated with
contingencies for product and process technology rights. The
charges for other product and process technology decreased as a
percentage of net sales in the third quarter and first nine
months of 1995 compared to the same periods of 1994 primarily as
a result of a paid-up license that was fully amortized late in
fiscal 1994. Future product and process technology charges may
vary as a result of claims asserted or licenses acquired in the
future. See "Certain Factors".
The Company continues to limit its production of 16 Meg
DRAMs in order to maximize 4 Meg DRAM production consistent with
existing customer preferences. The transition from the 4 Meg
DRAM to the 16 Meg DRAM may adversely impact the Company's gross
margin percentage as production capacity is shifted from a
relatively mature device to a next generation device. The
Company is unable to predict when the market will transition to
the 16 Meg DRAM as its primary product.
<TABLE>
<CAPTION>
Third Quarter Nine Months Ended
-------------------------- --------------------------
1995 Change 1994 1995 Change 1994
-------------------------- --------------------------
<S> <C> <C> <C> <C> <C> <C>
Selling,
general, and
administrative $ 54.4 52.0% $ 35.8 $ 131.6 27.8% $ 103.0
as a % of net
sales 7.1% 8.4% 6.8% 9.1%
</TABLE>
The higher level of selling, general, and administrative
expenses during the third quarter of 1995 as compared to the
third quarter of 1994 resulted primarily from a higher level of
personnel costs associated with the Company's profit sharing
programs and increased number of administrative employees, and to
a lesser extent, increased PC system advertising expenses.
<TABLE>
<CAPTION>
Third Quarter Nine Months Ended
-------------------------- --------------------------
1995 Change 1994 1995 Change 1994
-------------------------- --------------------------
<S> <C> <C> <C> <C> <C> <C>
Research and
development $ 33.6 46.7% $ 22.9 $ 89.5 60.1% $ 55.9
as a % of net
sales 4.4% 5.4% 4.7% 4.9%
</TABLE>
Research and development expenses, vary primarily with the
number of wafers and personnel dedicated to new product and
process development. Efforts in the third quarter of 1995 were
focused primarily on further development of 16 Meg DRAM shrinks,
4 Meg DRAM shrinks, and the 32K x 36 synchronous SRAM, and design and
development of the 64 Meg and 256 Meg DRAMs. In addition to such
efforts, research and development efforts in the remainder of 1995 are
expected to be focused on design and development of new technologies,
including radio frequency identification products, nonvolatile
semiconductor memory devices, and field emission flat panel displays.
9
<PAGE>
<TABLE>
<CAPTION>
Third Quarter Nine Months Ended
-------------------------- --------------------------
1995 Change 1994 1995 Change 1994
-------------------------- --------------------------
<S> <C> <C> <C> <C> <C> <C>
Income tax
provision $ 132.2 125% $ 58.7 $ 337.8 132% $ 145.5
</TABLE>
During the second quarter of 1995, the Company changed its
estimate of the effective income tax rate for fiscal 1995 to
37.5% from 36.0%.
Liquidity and Capital Resources
The Company had cash and liquid investments of approximately
$624 million as of June 1, 1995, representing an increase of
approximately $191 million during the first nine months of 1995.
The Company's principal sources of liquidity during the first
nine months of 1995 were cash flows from operations of $694
million, equipment financing of $142 million, issuance of long-
term debt of $60 million, $14 million from cash acquired in the
merger transaction, and $14 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 1995 were $594 million for property, plant, and
equipment, $116 million for payments on equipment contracts, $27
million for payments on long-term debt, and $10 million for
payment of cash dividends on common stock.
As of June 1, 1995, the Company had contractual commitments,
extending into fiscal 1997, of approximately $615 million for
equipment purchases and approximately $69 million for the
construction of buildings. Expansion of the Boise manufacturing
site is continuing with substantial conversion of Fab III to 8-
inch wafer processing capabilities targeted for the end of
calendar 1995 and Fab I/II conversion targeted for the end of
fiscal 1996. Initial occupancy has begun on the Test and
Assembly facility with final occupancy targeted for the end of
the calendar year. The new research and development fab is
nearly ready for occupancy and the central implant facility is
complete with an additional expansion begun. In addition,
initial construction on the manufacturing complex located in
Lehi, Utah is targeted to begin this summer. Capital
expenditures associated with construction and equipment for the
Utah complex are expected to exceed $1.5 billion. Completion of
this long-term expansion project could take up to four years and
will proceed in stages as future market conditions allow.
During the third quarter of 1995, the Company terminated its
bank credit agreement which provided for borrowings of up to $120
million. There were no borrowings under the agreement during
1995.
The Company believes continuing investments in manufacturing
technology, facilities and capital equipment, research and
development, and product and process technology are necessary to
support future growth, achieve operating efficiencies, and
maintain product quality. Although the Company has recently been
able to fund its liquidity needs principally through cash flows
from operations and equipment financings, external sources of
cash have been required historically to supplement the Company's
cash flows from operations to fund such investments. In order to
fund the Company's current capital development program as
scheduled, the Company may be required to pursue external sources
of liquidity. There can be no assurance that external funds will
be available to fund the Company's ongoing operations or capital
development on terms acceptable to the Company.
10
<PAGE>
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. These
characteristics historically have made the semiconductor industry
highly cyclical, particularly in the market for drams, which are
the Company's primary products. Demand for semiconductor memory
products has grown, fueled primarily by growth in the personal
computer industry. Many of the Company's competitors are adding
new facilities designed to process 8-inch wafers, which have
approximately 84% greater usable surface area than the 6-inch
wafer currently used by the Company. Excess supply as a result
of increased semiconductor manufacturing capacity, adverse market
conditions, or currency fluctuation resulting in a strengthening
dollar against the yen, could result in downward pricing
pressure. A decline in the current favorable product pricing
would have a material adverse effect on the Company's results of
operations.
The manufacture of the Company's semiconductor memory 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'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 memory 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. The Company has various product and
process technology agreements expiring in the remainder of 1995.
The Company is not able to predict whether these license
agreements can be renewed on terms acceptable to the Company.
11
<PAGE>
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) The following are filed as a part of this report:
Exhibit Page
Number Description of Exhibit Number
11 Computation of per share earnings for the
quarter and nine month periods ended June
1, 1995 and June 2, 1994 14 & 15
(b) The registrant filed a report on Form 8-K dated April 3,
1995, announcing the approval by the Company's Board of Directors
of a 2 for 1 stock split effected in the form of a stock
dividend, and a $0.05 per share cash dividend for payment on June
14, 1995, to shareholders of record on June 5, 1995.
12
<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, 1995 /s/ Wilbur G. Stover, Jr.
-------------------------------------
Wilbur G. Stover, Jr. Vice President,
Finance, and Chief Financial Officer
(Principal Financial and Accounting
Officer)
13
Exhibit 11
MICRON TECHNOLOGY, INC.
Computation of Per Share Amounts
(Amounts in millions except for per share amounts)
<TABLE>
<CAPTION>
June 1, June 2,
Quarter Ended 1995 1994
- -------------------------------------------------------------------
<S> <C> <C>
PRIMARY
Weighted average shares
outstanding 205.6 203.2
Stock options using average market
price 9.5 8.1
-------- --------
Total shares 215.1 211.3
Net income $ 220.2 $ 104.3
Per share amount $1.02 $0.49
===== =====
FULLY DILUTED
Weighted average shares outstanding 205.6 203.2
Stock options using greater of average
or ending market price 10.2 8.2
-------- --------
Total shares 215.8 211.4
Net income $ 220.2 $ 104.3
Per share amount $1.02 $0.49
===== =====
</TABLE>
14
<PAGE>
Exhibit 11
MICRON TECHNOLOGY, INC.
Computation of Per Share Amounts
(Amounts in millions except for per share amounts)
<TABLE>
<CAPTION>
June 1, June 2,
Nine Months Ended 1995 1994
- -------------------------------------------------------------------
<S> <C> <C>
PRIMARY
Weighted average shares
outstanding 204.8 202.0
Stock options using average market
price 7.9 6.2
-------- --------
Total shares 212.7 208.2
Net income $ 563.0 $ 258.6
Per share amount $2.65 $1.24
===== =====
FULLY DILUTED
Weighted average shares outstanding 204.8 202.0
Stock options using greater of average
or ending market price 9.9 7.8
-------- --------
Total shares 214.7 209.8
Net income $ 563.0 $ 258.6
Per share amount $2.62 $1.23
===== =====
</TABLE>
15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
the accompanying financial statements and is qualified in its entirety
by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-END> JUN-1-1995
<CASH> 118
<SECURITIES> 506
<RECEIVABLES> 355
<ALLOWANCES> 12
<INVENTORY> 197
<CURRENT-ASSETS> 1,206
<PP&E> 1,683
<DEPRECIATION> 583
<TOTAL-ASSETS> 2,404
<CURRENT-LIABILITIES> 512
<BONDS> 0
<COMMON> 21
0
0
<OTHER-SE> 1,597
<TOTAL-LIABILITY-AND-EQUITY> 2,404
<SALES> 1,925
<TOTAL-REVENUES> 1,925
<CGS> 849
<TOTAL-COSTS> 849
<OTHER-EXPENSES> 221
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (17)
<INCOME-PRETAX> 352
<INCOME-TAX> 132
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 563
<EPS-PRIMARY> 2.65
<EPS-DILUTED> 2.62
</TABLE>
