Printer Friendly


 BOISE, Idaho, Sept. 27 /PRNewswire/ -- Micron Technology Inc. (NYSE: MU), today reported net income for fiscal 1993 was $104.1 million or $2.57 fully diluted earnings per share, on net sales of $828.3 million, as compared to fiscal year 1992's net income of $6.6 million, or $0.17 fully diluted earnings per share, on net sales of $506.3 million. Fourth quarter 1993 net sales were $306.0 million and net income was $62.8 million, or $1.52 fully diluted earnings per share, compared to net sales of $135.2 million and net income of $2.9 million for the same quarter a year ago. Fourth quarter net income benefited in the amount of approximately $5.4 million, or $0.13 fully diluted earnings per share, from licensing of product and process technology.
 The company experienced an upswing in profitability in fiscal 1993 resulting from favorable market conditions and internal manufacturing efficiencies, primarily reductions in die sizes and increases in wafer output. While we are pleased with these results, we recognize they are in part a reflection of recent market conditions and believe shareholders should be mindful of the cyclical nature of the semiconductor industry and DRAM pricing and of the historical volatility of the company's operations and stock price. Other factors which warrant caution include the company's anticipated capital expenditures, pending patent litigation, and uncertainties relating to new product developments.
 A significant portion of the company's earnings for the current and upcoming fiscal year are anticipated to be dedicated toward increased capital expenditures. Anticipated capital expenditures include major remodels and upgrades of existing fabrication facilities and equipment and the construction of a central implant facility and an additional central utilities plant. Completion of these projects as currently anticipated will require substantial cash resources.
 The semiconductor industry has historically experienced significant volatility. As has occurred in the past in reaction to improved market conditions, several competitors have recently announced expansions in semiconductor manufacturing capacity. Several of these new facilities use 8-inch wafers compared to the company's exclusive use of earlier 6-inch wafer technology. Should overall industry production capacity expand faster than market demand, product pricing would likely experience a steep decline. Adverse market conditions for personal computer manufacturers or currency fluctuations resulting in a strengthening dollar against the yen would also result in downward DRAM pricing pressure. A drop in product pricing would have a material adverse effect on the company's results of operations and has historically resulted in lower pricing for the company's stock. The company depends on a variety of domestic and foreign suppliers to obtain raw materials. Interruption of any one supplier source could negatively impact the company's operations.
 The company continues to be confronted with various patent litigation matters. An adverse decision on infringement of patents may have a material adverse effect on the company's financial position or results of operations and may require material changes in production processes or products. Legal actions with Texas Instruments Inc. (TI) (NYSE: TXN) are proceeding. The original claims filed by TI in Marshall, Texas, have been stayed while the litigation between TI and the company in Idaho proceeds. In the Idaho action, TI is asserting infringement of 39 TI patents while the company has asserted infringement by TI of one company patent. No trial date has been set in the Idaho case. TI filed another suit against Micron Semiconductor Inc., in Marshall, Texas, regarding three patents not cited in TI's original claims, and Micron Semiconductor Inc., has filed a counterclaim that TI is infringing one of Micron Semiconductor's patents. That case is scheduled for trial in May 1994. Also pending against the company is a suit filed in Delaware by Thorn EMI North America Inc., alleging infringement by the company of certain Thorn patents. The trial date has been set for December 1993. During the last fiscal year, the company also brought suit in the International Trade Commission (ITC) against Goldstar Electron Co., Ltd., and Hyundai Electronics Industries Co., Ltd., for patent infringement. The company reached a settlement with Goldstar earlier this year resulting in a patent cross-license agreement. The action against Hyundai is scheduled for trial before the ITC administrative law judge in October 1993. After trial, the administrative law judge will submit a recommendation to the ITC for final determination. The ITC ruling will be subject to appeal to the federal circuit court. The results of this case may have consequences in the TI litigation in Idaho, because the company is asserting that TI infringes the same patent. If for any reason this patent is declared by the ITC to be invalid or not infringed, the company's assertion of the patent against TI may be impaired.
 The company is actively developing new products and product lines to meet future customer needs, but there can be no assurance that these efforts will be successful or will be completed in a timely manner. Many competitors are in volume production of 16 Meg DRAMs in a 400 mil package. The company is currently pursuing internal qualification of its 400 mil version of the 16 Meg DRAM and is in the early stages of developing the technology necessary for a shrink version fitting a 300 mil package. Should the market shift to the 16 Meg DRAM as its primary product in fiscal 1994, and more particularly to a 300 mil version, the company may not be positioned to achieve cost-effective production of its 16 Meg DRAM, and the company's results of operations may thereby be adversely affected. After evaluating our competitive position, the company has discontinued development of programmable logic devices and a one-time programmable memory product. While the company strives to achieve further diversity in its product offerings, current earnings are still largely dependent upon semiconductor memory pricing.
 Micron Technology Inc., based in Boise, Idaho, is a holding company whose common stock is traded on the New York Stock Exchange Inc. (NYSE) under the symbol MU. The company's primary subsidiary, Micron Semiconductor Inc., manufactures and markets DRAMs, fast SRAMs, and other semiconductor products.
 (Amounts in thousands, except per share amounts)
 Quarter Ended Year Ended
 9/2/93 9/3/92 9/2/93 9/3/92
 Net sales $305,966 $135,215 $828,270 $506,300
 Costs and expenses
 Cost of goods sold 163,302 104,733 517,138 390,281
 Selling, general, and
 administrative 26,957 13,456 87,863 54,712
 Research and development 17,142 12,055 57,323 47,591
 Total costs and expenses 207,401 130,244 662,324 492,584
 Operating income 98,565 4,971 165,946 13,716
 Interest expense, net 377 1,219 3,346 4,114
 Income before income taxes 98,188 3,752 162,600 9,602
 Income tax provision 35,347 870 58,535 2,976
 Net income $62,841 $2,882 $104,065 $6,626
 Fully diluted earnings
 per share $1.52 $0.07 $2.57 $0.17
 Number of shares used in
 per share calculations 41,404 39,195 40,520 38,912
 Selected Financial Data
 9/2/93 9/3/92
 Cash and liquid investments $185,813 $73,291
 Receivables 154,686 77,953
 Inventories 83,164 74,501
 Total current assets 440,076 226,992
 Property, plant and
 equipment net 437,761 396,280
 Total assets 965,656 724,483
 Accounts payable
 and accrued expenses 154,963 58,769
 Current portion
 of long-term debt 25,407 27,230
 Total current liabilities 210,784 106,095
 Long-term debt 54,361 61,569
 Shareholders' equity 639,509 511,167
 NOTE: Net sales for the fourth quarter of 1993 includes $8.4 million from licensing product and process technology.
 -0- 9/27/93
 /CONTACT: Kipp Bedard of Micron Semiconductor, 208-368-4400/

CO: Micron Technology Inc.; Texas Instruments Inc. ST: Idaho IN: CPR SU: ERN

IC -- SE010 -- 6144 09/27/93 18:40 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 27, 1993

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters