Micron Technology Inc. (NASDAQ:MU) filed Quarterly Report for the period ended 2010-12-02.
Micron Technology Inc. has a market cap of $8.52 billion; its shares were traded at around $8.55 with a P/E ratio of 6.1 and P/S ratio of 1. MU is in the portfolios of Donald Smith of Donald Smith & Co., PRIMECAP Management, Jim Simons of Renaissance Technologies LLC, Pioneer Investments, Louis Moore Bacon of Moore Capital Management, LP, Steven Cohen of SAC Capital Advisors, Paul Tudor Jones of The Tudor Group, David Dreman of Dreman Value Management, Jeremy Grantham of GMO LLC, George Soros of Soros Fund Management LLC.
Highlight of Business Operations:Numonyx Holdings B.V. ("Numonyx"): On May 7, 2010, we acquired Numonyx, which manufactures and sells primarily NOR Flash and NAND Flash memory technologies and products. The total fair value of the consideration paid for Numonyx was $1,112 million and consisted of 137.7 million shares of our common stock issued to the Numonyx shareholders and 4.8 million restricted stock units issued to employees of Numonyx. In connection with the acquisition, we recorded net assets of $1,549 million. Because the fair value of the net assets acquired exceeded the purchase price, we recognized a gain on the acquisition of $437 million in the third quarter of 2010. In addition, we recognized a $51 million income tax benefit in connection with the acquisition. Our results of operations for the first quarter of 2011 include $573 million of net sales and $17 million of operating income from the Numonyx operations. Our results of operations for 2010 included $635 million of net sales and $13 million of operating losses from the Numonyx operations after the May 7, 2010 acquisition date.
Sales through IM Flash to Intel were $209 million for the first quarter of 2011, $195 million for the fourth quarter of 2010 and $193 million for the first quarter of 2010. Gigabit sales to Intel were 17% higher for the first quarter of 2011 as compared to the fourth quarter of 2010 primarily due to an 8% increase in gigabit production of NAND Flash products over the same period. Production increases for NAND Flash were primarily due to improved manufacturing efficiencies achieved primarily through transitions to higher density, advanced geometry devices. We expect that the ramp of production at IMFS's new wafer fabrication facility in Singapore will begin to increase our NAND Flash production in the second half of 2011. Our share of the operating costs and supply from IMFS adjusts to changes in our ownership interest, with generally a 12-month lag (depending on the status of IMFS as of such date) from the date of the applicable ownership change. Accordingly, we anticipate that our share of IMFS costs and supply will increase from 51% as of December 2, 2010 to our ownership interest in IMFS. For the first quarter of 2011, average selling prices for IM Flash sales to Intel decreased 8% as compared to the fourth quarter of 2010 due to reductions in costs per gigabit.
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