Micron Technology, Inc., Reports Results for the Fourth Quarter and 2011 Fiscal Year

The trial phase of the Rambus antitrust case that was heard in the San Francisco Superior Court ended on September 21, 2011 and the jury is currently deliberating the verdict. The company is unable to predict the outcome of this suit and is unable to reasonably estimate the range of possible loss. An unfavorable outcome could have a material adverse impact on the company's results of operations for the fourth quarter of fiscal 2011.

The company's consolidated gross margin declined to 15 percent for the fourth quarter of fiscal 2011 from 22 percent for the third quarter of fiscal 2011 due primarily to significant declines in DRAM average selling prices. Revenue from sales of NAND Flash products was 11 percent higher in the fourth quarter of fiscal 2011 compared to the third quarter of fiscal 2011 due to a 40 percent increase in sales volume partially offset by a decrease in average selling prices. Revenue from sales of DRAM products was 12 percent lower in the fourth quarter of fiscal 2011 compared to the third quarter of fiscal 2011 due to the declines in average selling prices partially offset by an increase in sales volume. Sales of NOR Flash products were approximately 17 percent of total net sales for the fourth quarter of fiscal 2011.

Cash flows from operations for the fourth quarter of fiscal 2011 were $354 million. During the fourth quarter of fiscal 2011, the company invested $928 million in capital expenditures. In addition, during the fourth quarter, the company issued $690 million of convertible debt and repurchased $150 million of its common stock. The company ended the quarter with cash and short-term investments of $2.2 billion. For all of fiscal 2011, the company invested approximately $2.9 billion in capital and paid down its debt by a net amount of approximately $260 million.

The company will host a conference call today at 2:30 p.m. MDT to discuss its financial results. The call, audio and slides will be available online at http://investors.micron.com/events.cfm. A webcast replay will be available on the company's website until Sept. 29, 2012. A taped audio replay of the conference call will also be available at (404) 537-3406 (conference ID: 11557620) beginning at 5:30 p.m. MDT today and continuing until 5:30 p.m. MDT on Thursday, Oct. 6, 2011.