Micron Technology, today announced results of operations for its fourth quarter and fiscal year, which ended August 28, 2003. For the third consecutive year the company reports losses, but remains optimistic in respect of its future.

For the fourth quarter, Micron had a net loss of $123 million, or $0.20 per diluted share, on sales of $889 million and a net loss for the 2003 fiscal year of $1,273 million, or $2.11 per diluted share, on sales of $3,091 million. Micron did not recognize any tax benefit in fiscal 2003 from its US net operating losses.

Micron also announced the receipt of $450 million from Intel Corporation in exchange for the issuance of stock rights exchangeable into approximately 33.9 million shares of the Micron’s common stock. The investment was made in the context of comprehensive business agreements between the two companies confirming an ongoing, close relationship between the companies and alignment of business interests, including deployment of DDR-II memory and 300mm wafer processing. Micron agreed to achieve operational objectives through May 2005, including certain levels of DDR-II production and 300mm wafer processing capacity, and dedication of resources to advanced product development. See our yesterday's news-story for more details.

Micron sales were 21% higher in the fourth quarter as compared to the immediately preceding quarter as a result of an approximate 15% increase in megabit selling prices and an increase in megabit sales volume. Sales for the 2003 fiscal year were 19% higher compared to fiscal 2002. The average selling price for the primary product, the 256Mb DDR SDRAM, decreased approximately 30% comparing the fourth quarter of fiscal 2003 to the fourth quarter of fiscal 2002. Sales volume slightly outpaced production in the fourth quarter of fiscal 2003 resulting in lower megabit finished goods inventories as compared to the previous quarter as well as the prior year-end.

Megabit production for Micron increased approximately 8% comparing the fourth quarter of fiscal 2003 to the third quarter. The fourth quarter increase followed megabit production increases of approximately 20% and 10% in the third and second quarters of fiscal 2003, respectively. The megabit production gains were principally due to completion of the Micron’s 0.13 micron process technology migration, transitions to 0.11 micron devices and improved manufacturing yields.