Micron discontinued 3D XPoint technology research and development

Micron Technology released its financial report for the second quarter of fiscal 2022. According to the report, the operating income in the second quarter of the fiscal year 2022 was US$7.786 billion, an increase of 1.29% month-on-month and a year-on-year increase of 24.86%.

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Moreover, the net profit was US$2.263 billion, a month-on-month decrease of 1.86% and a year-on-year increase of 257.29%; gross profit margin was 47.21%, research and development expenses accounted for 10.17% of operating income; operating cash flow was $3.63 billion.

Micron said that in the second quarter of 2021, the company further strengthened its focus on memory and storage innovation in the data center market. The company discontinued the development of 3D XPoint technology and discussed with potential buyers to sell our dedicated 3D XPoint production facility in Leahy.

Therefore, we classify property, plant, and equipment as held for sale and stop depreciating assets. On June 30, 2021, the company announced a definitive agreement to sell the LEHI facility to Texas Instruments, with the sale closing on October 22, 2021.

During the first quarter of 2022, the company received $893 million from the sale of the Lehi facility by TI and disposes of $918 million in net assets, primarily including $921 million in property, plant, and equipment; $55 million in other assets, primarily includes property tax repayments receivable, spare parts for equipment and raw materials; and $58 million of liabilities primarily comprised of finance lease obligations.

As a result of the disposal of the LEHI facility, the company recognized a loss of $23 million, included in the restructuring and impairment of assets in the first quarter of 2022. In the third quarter of 2021, the company recognized charges of $435 million, including restructuring and asset impairments related to TI’s definitive agreement to write down assets held for sale to the expected consideration, less the estimated cost of sales.

During the second quarter of 2021, the company also recognized a cost of sales expense of $49 million to write down 3D XPoint inventory related to our decision to stop further development of the technology.

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