-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, cYQNKi9u2j3zFUhJmVC3dgeA2s7B2dEgpdfuhwlZIolawW841HxWXpnQoxxP/6Wu SNyyhyMx2Q3ByV8XqgEl5g== 0000723125-94-000013.txt : 19940701 0000723125-94-000013.hdr.sgml : 19940701 ACCESSION NUMBER: 0000723125-94-000013 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940602 FILED AS OF DATE: 19940621 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MICRON TECHNOLOGY INC CENTRAL INDEX KEY: 0000723125 STANDARD INDUSTRIAL CLASSIFICATION: 3674 IRS NUMBER: 751618004 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-10658 FILM NUMBER: 94535039 BUSINESS ADDRESS: STREET 1: 2805 E COLUMBIA RD CITY: BOISE STATE: ID ZIP: 83706 BUSINESS PHONE: 2083684000 10-Q 1 THIRD QUARTER 10-Q 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. Part I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements MICRON TECHNOLOGY, INC. Consolidated Balance Sheets (Dollars in thousands)
June 2, September 2, 1994 1993 (Unaudited) ------------------------------------------------------------------- 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 ==================================================================
See accompanying notes to consolidated financial statements. 1 MICRON TECHNOLOGY, INC. Consolidated Statements of Operations (Dollars in thousands, except for per share data) (Unaudited)
Quarter Ended June 2, June 3, 1994 1993 ------------------------------------------------------------------- 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 --
See accompanying notes to consolidated financial statements. 2 MICRON TECHNOLOGY, INC. Consolidated Statements of Operations (Dollars in thousands, except for per share data) (Unaudited)
Nine Months Ended June 2, June 3, 1994 1993 ------------------------------------------------------------------- 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
See accompanying notes to consolidated financial statements. 3 MICRON TECHNOLOGY, INC. Consolidated Statements of Cash Flows (Dollars in thousands) (Unaudited)
Nine Months Ended June 2, June 3, 1994 1993 -------------------------------------------------------------------- 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
See accompanying notes to consolidated financial statements. 4 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
June 2, September 2, 1994 1993 ----------- ------------ 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 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 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 =========== =======
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 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:
June 2, 1994 --------- 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) ========
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 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 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.
Results of Operations Third Quarter Nine Months Ended ------------------------ -------------------------- 1994 % Change 1993 1994 % Change 1993 ------------------------ -------------------------- Net sales $426,392 98.4% $214,926 $1,136,989 117.7% $522,304
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 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.
Third Quarter Nine Months Ended ------------------------ ------------------------ 1994 % Change 1993 1994 % Change 1993 ------------------------ ------------------------ 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%
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
Third Quarter Nine Months Ended ------------------------ ------------------------ 1994 % Change 1993 1994 % Change 1993 ------------------------ ------------------------ 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%
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.
Third Quarter Nine Months Ended ------------------------ ------------------------ 1994 % Change 1993 1994 % Change 1993 ------------------------ ------------------------ 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%
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.
Third Quarter Nine Months Ended ------------------------ ------------------------ 1994 % Change 1993 1994 % Change 1993 ------------------------ ------------------------ Income tax provision $ 58,685 254% $ 16,589 $145,484 527% $23,188
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 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 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 Part II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K a) INDEX OF EXHIBITS
Exhibit Number Description of Exhibit ------- -------------------------------- 11 Computation of per share earnings for the quarters and nine month periods ended June 2, 1994, and June 3, 1993
b) The registrant did not file any Reports on Form 8-K during the quarter ended June 2, 1994. 15 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 EX-11 2 COMPUTATION PER SHARE EARNINGS MICRON TECHNOLOGY, INC. Exhibit 11 Computation of Per Share Amounts (Amounts in thousands except for per share amounts)
Quarter Ended June 2, June 3, 1994 1993 ------- ------- 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 ========= =========
MICRON TECHNOLOGY, INC. Exhibit 11 Computation of Per Share Amounts (Amounts in thousands except for per share amounts)
Nine Months Ended June 2, June 3, 1994 1993 -------- ------- 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 ========= ========
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