Micron Technology, Inc. has a market cap of $6.65 billion; its shares were traded at around $6.5 with and P/S ratio of 0.8.
Highlight of Business Operations:NSG sales for the third quarter and first nine months of 2012 increased 50% and 40%, respectively, from the corresponding periods of 2011 primarily due to an increase in gigabits sold partially offset by declines in average selling prices per gigabit. The declines in NSG operating margin for the third quarter and first nine months of 2012 as compared to the corresponding periods of 2011 were primarily due to reductions in manufacturing costs per gigabit and lower charges for underutilized capacity, partially offset by the declines in overall average selling prices per gigabit. In addition, operating income for the third quarter and first nine months of 2011 benefited from gains of $10 million and $57 million, respectively, from a license agreement with Samsung.
The decreases in WSG sales for the third quarter and first nine months of 2012 of 44% and 37%, respectively, as compared to the corresponding periods of 2011 was primarily due to declines in sales of wireless NOR Flash as well as lower sales of NAND Flash products sold in multi-chip packages with wireless DRAM products. The decreases in sales of NOR Flash products also contributed to a decline in WSG operating margin for the third quarter and first nine months of 2012 as compared to the corresponding periods of 2011. In addition, WSG operating income for the third quarter and first nine months of 2011 benefited from gains of $11 million and $95 million, respectively, from a license agreement with Samsung.
We have a supply agreement with Inotera, under which Nanya is also a party, for the rights and obligations to purchase 50% of Inotera's wafer production capacity under the Inotera Supply Agreement. As a result of our March 7, 2012 equity contribution to Inotera, we expect to receive a higher share of Inotera's 30-nanometer output when it becomes available as a result of Inotera capital investments enabled by our $170 million equity investment. DRAM products acquired from Inotera accounted for 48% of our DRAM gigabit production for the third quarter of 2012 as compared to 45% for the second quarter of 2012 and 35% for the third quarter of 2011. The higher level of production from Inotera was achieved through Inotera's continued transition to our process technology. We primarily obtained DDR3 DRAM products for the PC market from Inotera in 2012 and 2011. Our cost of wafers purchased under the Inotera Supply Agreement is based on a margin-sharing formula among Nanya, Inotera and us. Under such formula, all parties' manufacturing costs related to wafers supplied by Inotera, as well as our and Nanya's revenue for the resale of products from wafers supplied by Inotera, are considered in determining costs for wafers acquired from Inotera. Because of significant market declines in the selling price of DRAM, Inotera incurred net losses of $155 million for its quarter ended March 31, 2012. Also, Inotera's current liabilities exceeded its current assets by $2 billion as of March 31, 2012, which exposes Inotera to liquidity risk. Inotera's management has developed plans to improve its liquidity. There can be no assurance that Inotera's plans to improve its liquidity will be successful.
Net cash provided by operating activities was $1,664 million for the first nine months of 2012, which reflected approximately $1,257 million generated from the production and sales of our products and a net $407 million effect from changes in the amount invested in net working capital. For the third quarter of 2012, inventories decreased by $182 million due to efforts to manage to a lower level and negotiated changes in the IM Flash wafer supply agreement with Intel.
Net cash used for investing activities was $1,980 million for the first nine months of 2012, which consisted primarily of cash expenditures of $1,367 million for property, plant and equipment and $436 million for the acquisition of available-for-sale securities (net of proceeds from sales and maturities of $63 million). We believe that to develop new product and process technologies, support future growth, achieve operating efficiencies and maintain product quality, we must continue to invest in manufacturing technologies, facilities and capital equipment and R&D. We expect capital spending for 2012 to approximate $1.8 billion and for 2013 to approximate $1.6 billion to $1.9 billion. The actual amounts for 2012 and 2013 will vary depending on market conditions. As of May 31, 2012, we had commitments of approximately $450 million for the acquisition of property, plant and equipment, substantially all of which is expected to be paid within one year.
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