09/25/2024 | Press release | Distributed by Public on 09/25/2024 14:01
Quarterly Financial Results | ||||||||||||
(in millions, except per share amounts) |
GAAP(1)
|
Non-GAAP(2)
|
||||||||||
FQ4-24 | FQ3-24 | FQ4-23 | FQ4-24 | FQ3-24 | FQ4-23 | |||||||
Revenue | $ | 7,750 | $ | 6,811 | $ | 4,010 | $ | 7,750 | $ | 6,811 | $ | 4,010 |
Gross margin | 2,737 | 1,832 | (435) | 2,826 | 1,917 | (366) | ||||||
percent of revenue | 35.3 | % | 26.9 | % | (10.8 | %) | 36.5 | % | 28.1 | % | (9.1 | %) |
Operating expenses | 1,215 | 1,113 | 1,037 | 1,081 | 976 | 842 | ||||||
Operating income (loss) | 1,522 | 719 | (1,472) | 1,745 | 941 | (1,208) | ||||||
percent of revenue | 19.6 | % | 10.6 | % | (36.7 | %) | 22.5 | % | 13.8 | % | (30.1 | %) |
Net income (loss) | 887 | 332 | (1,430) | 1,342 | 702 | (1,177) | ||||||
Diluted earnings (loss) per share | 0.79 | 0.30 | (1.31) | 1.18 | 0.62 | (1.07) |
Annual Financial Results | ||||||||
(in millions, except per share amounts) |
GAAP(1)
|
Non-GAAP(2)
|
||||||
FY-24 | FY-23 | FY-24 | FY-23 | |||||
Revenue | $ | 25,111 | $ | 15,540 | $ | 25,111 | $ | 15,540 |
Gross margin | 5,613 | (1,416) | 5,943 | (1,196) | ||||
percent of revenue | 22.4 | % | (9.1 | %) | 23.7 | % | (7.7 | %) |
Operating expenses | 4,309 | 4,329 | 4,008 | 3,623 | ||||
Operating income (loss) | 1,304 | (5,745) | 1,935 | (4,819) | ||||
percent of revenue | 5.2 | % | (37.0 | %) | 7.7 | % | (31.0 | %) |
Net income (loss) | 778 | (5,833) | 1,472 | (4,862) | ||||
Diluted earnings (loss) per share | 0.70 | (5.34) | 1.30 | (4.45) |
FQ1-25
|
GAAP(1) Outlook
|
Non-GAAP(2) Outlook
|
Revenue
|
$8.70 billion ± $200 million | $8.70 billion ± $200 million |
Gross margin
|
38.5% ± 1.0% | 39.5% ± 1.0% |
Operating expenses
|
$1.211 billion ± $15 million | $1.085 billion ± $15 million |
Diluted earnings per share
|
$1.54 ± $0.08 | $1.74 ± $0.08 |
4th Qtr. | 3rd Qtr. | 4th Qtr. | Year Ended | |||||||
August 29, 2024 |
May 30, 2024 |
August 31, 2023 |
August 29, 2024 |
August 31, 2023 |
||||||
Revenue | $ | 7,750 | $ | 6,811 | $ | 4,010 | $ | 25,111 | $ | 15,540 |
Cost of goods sold | 5,013 | 4,979 | 4,445 | 19,498 | 16,956 | |||||
Gross margin | 2,737 | 1,832 | (435) | 5,613 | (1,416) | |||||
Research and development | 903 | 850 | 719 | 3,430 | 3,114 | |||||
Selling, general, and administrative | 295 | 291 | 219 | 1,129 | 920 | |||||
Restructure and asset impairments | 1 | - | 4 | 1 | 171 | |||||
Other operating (income) expense, net | 16 | (28) | 95 | (251) | 124 | |||||
Operating income (loss) | 1,522 | 719 | (1,472) | 1,304 | (5,745) | |||||
Interest income | 131 | 136 | 134 | 529 | 468 | |||||
Interest expense | (136) | (150) | (129) | (562) | (388) | |||||
Other non-operating income (expense), net | (7) | 10 | 9 | (31) | 7 | |||||
1,510 | 715 | (1,458) | 1,240 | (5,658) | ||||||
Income tax (provision) benefit | (623) | (377) | 24 | (451) | (177) | |||||
Equity in net income (loss) of equity method investees | - | (6) | 4 | (11) | 2 | |||||
Net income (loss) | $ | 887 | $ | 332 | $ | (1,430) | $ | 778 | $ | (5,833) |
Earnings (loss) per share | ||||||||||
Basic | $ | 0.80 | $ | 0.30 | $ | (1.31) | $ | 0.70 | $ | (5.34) |
Diluted | 0.79 | 0.30 | (1.31) | 0.70 | (5.34) | |||||
Number of shares used in per share calculations | ||||||||||
Basic | 1,108 | 1,107 | 1,095 | 1,105 | 1,093 | |||||
Diluted | 1,125 | 1,123 | 1,095 | 1,118 | 1,093 |
As of |
August 29, 2024 |
May 30, 2024 |
August 31, 2023 |
|||
Assets | ||||||
Cash and equivalents | $ | 7,041 | $ | 7,594 | $ | 8,577 |
Short-term investments | 1,065 | 785 | 1,017 | |||
Receivables | 6,615 | 5,131 | 2,443 | |||
Inventories | 8,875 | 8,512 | 8,387 | |||
Other current assets | 776 | 1,297 | 820 | |||
Total current assets | 24,372 | 23,319 | 21,244 | |||
Long-term marketable investments | 1,046 | 775 | 844 | |||
Property, plant, and equipment | 39,749 | 37,926 | 37,928 | |||
Operating lease right-of-use assets | 645 | 660 | 666 | |||
Intangible assets | 416 | 413 | 404 | |||
Deferred tax assets | 520 | 597 | 756 | |||
Goodwill | 1,150 | 1,150 | 1,150 | |||
Other noncurrent assets | 1,518 | 1,415 | 1,262 | |||
Total assets | $ | 69,416 | $ | 66,255 | $ | 64,254 |
Liabilities and equity | ||||||
Accounts payable and accrued expenses | $ | 7,299 | $ | 5,145 | $ | 3,958 |
Current debt | 431 | 398 | 278 | |||
Other current liabilities | 1,518 | 1,297 | 529 | |||
Total current liabilities | 9,248 | 6,840 | 4,765 | |||
Long-term debt | 12,966 | 12,860 | 13,052 | |||
Noncurrent operating lease liabilities | 610 | 609 | 603 | |||
Noncurrent unearned government incentives | 550 | 672 | 727 | |||
Other noncurrent liabilities | 911 | 1,049 | 987 | |||
Total liabilities | 24,285 | 22,030 | 20,134 | |||
Commitments and contingencies | ||||||
Shareholders' equity | ||||||
Common stock | 125 | 125 | 124 | |||
Additional capital | 12,115 | 11,794 | 11,036 | |||
Retained earnings | 40,877 | 40,169 | 40,824 | |||
Treasury stock | (7,852) | (7,552) | (7,552) | |||
Accumulated other comprehensive income (loss) | (134) | (311) | (312) | |||
Total equity | 45,131 | 44,225 | 44,120 | |||
Total liabilities and equity | $ | 69,416 | $ | 66,255 | $ | 64,254 |
For the year ended |
August 29, 2024 |
August 31, 2023 |
||
Cash flows from operating activities | ||||
Net income (loss) | $ | 778 | $ | (5,833) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
||||
Depreciation expense and amortization of intangible assets | 7,780 | 7,756 | ||
Stock-based compensation
|
833 | 596 | ||
Provision to write down inventories to net realizable value
|
- | 1,831 | ||
Goodwill impairment
|
- | 101 | ||
Change in operating assets and liabilities:
|
||||
Receivables | (3,581) | 2,763 | ||
Inventories | (488) | (3,555) | ||
Accounts payable and accrued expenses | 1,915 | (1,302) | ||
Other current liabilities
|
989 | (817) | ||
Other | 281 | 19 | ||
Net cash provided by operating activities | 8,507 | 1,559 | ||
Cash flows from investing activities | ||||
Expenditures for property, plant, and equipment | (8,386) | (7,676) | ||
Purchases of available-for-sale securities | (1,999) | (723) | ||
Proceeds from maturities and sales of available-for-sale securities
|
1,794 | 1,591 | ||
Proceeds from government incentives | 315 | 710 | ||
Other | (33) | (93) | ||
Net cash provided by (used for) investing activities | (8,309) | (6,191) | ||
Cash flows from financing activities | ||||
Repayments of debt | (1,897) | (761) | ||
Payments of dividends to shareholders | (513) | (504) | ||
Repurchases of common stock - repurchase program | (300) | (425) | ||
Payments on equipment purchase contracts | (149) | (138) | ||
Proceeds from issuance of debt
|
999 | 6,716 | ||
Other | 18 | 95 | ||
Net cash provided by (used for) financing activities | (1,842) | 4,983 | ||
Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash
|
40 | (34) | ||
Net increase (decrease) in cash, cash equivalents, and restricted cash | (1,604) | 317 | ||
Cash, cash equivalents, and restricted cash at beginning of period | 8,656 | 8,339 | ||
Cash, cash equivalents, and restricted cash at end of period | $ | 7,052 | $ | 8,656 |
4th Qtr. | 3rd Qtr. | 4th Qtr. | Year Ended | |||||||
August 29, 2024 |
May 30, 2024 |
August 31, 2023 |
August 29, 2024 |
August 31, 2023 |
||||||
Provision to write down inventory to NRV | $ | - | $ | - | $ | - | $ | - | $ | (1,831) |
Lower costs from sale of inventory written down in prior periods | - | - | 563 | 987 | 844 | |||||
$ | - | $ | - | $ | 563 | $ | 987 | $ | (987) |
4th Qtr. | 3rd Qtr. | 4th Qtr. | Year Ended | |||||||
August 29, 2024 |
May 30, 2024 |
August 31, 2023 |
August 29, 2024 |
August 31, 2023 |
||||||
GAAP gross margin | $ | 2,737 | $ | 1,832 | $ | (435) | $ | 5,613 | $ | (1,416) |
Stock-based compensation | 85 | 80 | 64 | 312 | 201 | |||||
Other | 4 | 5 | 5 | 18 | 19 | |||||
Non-GAAP gross margin | $ | 2,826 | $ | 1,917 | $ | (366) | $ | 5,943 | $ | (1,196) |
GAAP operating expenses | $ | 1,215 | $ | 1,113 | $ | 1,037 | $ | 4,309 | $ | 4,329 |
Stock-based compensation | (128) | (137) | (87) | (509) | (363) | |||||
Restructure and asset impairments | (1) | - | (4) | (1) | (171) | |||||
Patent cross-license agreement gain | - | - | - | 200 | - | |||||
Goodwill impairment
|
- | - | (101) | - | (101) | |||||
Litigation settlement | - | - | - | - | (68) | |||||
Other | (5) | - | (3) | 9 | (3) | |||||
Non-GAAP operating expenses | $ | 1,081 | $ | 976 | $ | 842 | $ | 4,008 | $ | 3,623 |
GAAP operating income (loss) | $ | 1,522 | $ | 719 | $ | (1,472) | $ | 1,304 | $ | (5,745) |
Stock-based compensation | 213 | 217 | 151 | 821 | 564 | |||||
Restructure and asset impairments | 1 | - | 4 | 1 | 171 | |||||
Patent cross-license agreement gain
|
- | - | - | (200) | - | |||||
Goodwill impairment
|
- | - | 101 | - | 101 | |||||
Litigation settlement | - | - | - | - | 68 | |||||
Other | 9 | 5 | 8 | 9 | 22 | |||||
Non-GAAP operating income (loss) | $ | 1,745 | $ | 941 | $ | (1,208) | $ | 1,935 | $ | (4,819) |
GAAP net income (loss)
|
$ | 887 | $ | 332 | $ | (1,430) | $ | 778 | $ | (5,833) |
Stock-based compensation | 213 | 217 | 151 | 821 | 564 | |||||
Restructure and asset impairments | 1 | - | 4 | 1 | 171 | |||||
Patent cross-license agreement gain | - | - | - | (200) | - | |||||
Goodwill impairment
|
- | - | 101 | - | 101 | |||||
Litigation settlement | - | - | - | - | 68 | |||||
Other | 5 | 3 | 7 | - | 32 | |||||
Estimated tax effects of above and other tax adjustments
|
236 | 150 | (10) | 72 | 35 | |||||
Non-GAAP net income (loss) | $ | 1,342 | $ | 702 | $ | (1,177) | $ | 1,472 | $ | (4,862) |
GAAP weighted-average common shares outstanding - Diluted
|
1,125 | 1,123 | 1,095 | 1,118 | 1,093 | |||||
Adjustment for stock-based compensation
|
12 | 13 | - | 16 | - | |||||
Non-GAAP weighted-average common shares outstanding - Diluted
|
1,137 | 1,136 | 1,095 | 1,134 | 1,093 | |||||
GAAP diluted earnings (loss) per share
|
$ | 0.79 | $ | 0.30 | $ | (1.31) | $ | 0.70 | $ | (5.34) |
Effects of the above adjustments
|
0.39 | 0.32 | 0.24 | 0.60 | 0.89 | |||||
Non-GAAP diluted earnings (loss) per share
|
$ | 1.18 | $ | 0.62 | $ | (1.07) | $ | 1.30 | $ | (4.45) |
4th Qtr. | 3rd Qtr. | 4th Qtr. | Year Ended | |||||||
August 29, 2024 |
May 30, 2024 |
August 31, 2023 |
August 29, 2024 |
August 31, 2023 |
||||||
GAAP net cash provided by operating activities
|
$ | 3,405 | $ | 2,482 | $ | 249 | $ | 8,507 | $ | 1,559 |
Expenditures for property, plant, and equipment
|
(3,120) | (2,086) | (1,461) | (8,386) | (7,676) | |||||
Payments on equipment purchase contracts | (22) | (45) | (26) | (149) | (138) | |||||
Proceeds from sales of property, plant, and equipment | 12 | 41 | 18 | 99 | 92 | |||||
Proceeds from government incentives
|
48 | 33 | 462 | 315 | 710 | |||||
Investments in capital expenditures, net | (3,082) | (2,057) | (1,007) | (8,121) | (7,012) | |||||
Adjusted free cash flow
|
$ | 323 | $ | 425 | $ | (758) | $ | 386 | $ | (5,453) |
FQ1-25
|
GAAP Outlook | Adjustments | Non-GAAP Outlook | |
Revenue
|
$8.70 billion ± $200 million
|
- |
$8.70 billion ± $200 million
|
|
Gross margin
|
38.5% ± 1.0%
|
1.0%
|
A |
39.5% ± 1.0%
|
Operating expenses
|
$1.211 billion ± $15 million
|
$126 million
|
B |
$1.085 billion ± $15 million
|
Diluted earnings per share(1)
|
$1.54 ± $0.08
|
$0.20
|
A, B, C |
$1.74 ± $0.08
|
Non-GAAP Adjustments
(in millions)
|
|||
A
|
Stock-based compensation - cost of goods sold
|
$ | 87 |
A
|
Other - cost of goods sold
|
4 | |
B
|
Stock-based compensation - research and development
|
76 | |
B
|
Stock-based compensation - sales, general, and administrative
|
50 | |
C
|
Tax effects of the above items and other tax adjustments | 3 | |
$ | 220 |