On April 4, semiconductor and entertainment gadget designer Micron Technology
- The results in the tables below exclude a couple of decidedly one-time gains and losses. An $8 million currency-exchange loss this quarter seems paltry next to the $230 million operational gain in 2006 from an intellectual-property sale to Intel
(NASDAQ:INTC) . - Without those items, net margins came in about flat on a yearly basis, in a seasonally weak quarter and a tough semiconductor market -- conditions that competitors like SanDisk
(NASDAQ:SNDK) and OmniVision(NASDAQ:OVTI) can attest to. - Increased manufacturing capacity made inventories of finished DRAM and flash memory grow faster than sales, so there's the explanation for the inventory glut, along with in-process goods at the new facility in Virginia.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$1,427 |
$1,225 |
16.5% |
|
Net Profit |
($44) |
($37) |
(19.6%) |
|
EPS |
($0.06) |
($0.05) |
(20.0%) |
|
Diluted Shares |
768.7 |
714.6 |
7.6% |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
25.0% |
19.3% |
5.8 |
|
Operating Margin |
(1.8%) |
(3.4%) |
1.6 |
|
Net Margin |
(3.1%) |
(3.0%) |
(0.1) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,193 |
$2,585 |
(15.2%) |
|
Accounts Rec. |
$943 |
$697 |
35.3% |
|
Inventory |
$1,293 |
$686 |
88.5% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable & Accrued Expenses |
$1,376 |
$841 |
63.7% |
|
Long-Term Debt |
$639 |
$312 |
104.7% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$287 |
$880 |
(67.4%) |
|
Capital Expenditures |
$1,081 |
$187 |
479.6% |
|
Free Cash Flow |
($794) |
$693 |
N/A |
|
($432) |
($162) |
(166.5%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Foolish Forecast: Mingle With Micron
- Will Image Sensors Continue to Light Micron?
- OmniVision Looks Blurry: Fool by Numbers
- SanDisk No Spendthrift: Fool by Numbers
- Foolish Fundamentals: Inventory
Intel is a Motley Fool Inside Value recommendation.
Fool by Numbers is designed to give you raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Anders Bylund had no position in any company mentioned. The Fool's disclosure policy is here.
