Micron Electronics (MUEI) Message Board

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Technology Stocks : Micron Electronics (MUEI)

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To: BBoron who wrote (2440)	11/23/1997 6:58:00 AM
From: Richard H.	of 4074

Brian, I think you are right that no one is going to buy MUEI any time soon. I am not sure about your inventory comments. I think a better way to look at inventory is to compare inventory levels to cost of goods sold. Inventory days calculation is: Inventory / COGS X #days in period. For the last 5 quarters: 5/96 96.2 / 353.7 X 90 = 24.5 days of inventory on hand 8/96 69.8 / 375.5 X 90 = 16.7 days 11/96 117.3 / 340.6 X 90 = 30.9 days 2/97 107.6 / 418.7 X 90 = 23.1 days 5/97 87.7 / 431.8 X 90 = 18.3 days 8/97 115.5 / 426.9 X 90 = 24.3 days 11/97 ??? days The comment "inventories of PC components increase compared to the level on hand as of FYE 8/97" doesn't tell us much. Inventory amounts in gross dollars should increase as sales go up. Also notice that 11/96 was the inventory high point in the last fiscal year. From this I figure inventory levels would necessarily be higher at this time. A better question might be: Is there any inventory obsolescence and will the company be taking any charges for inventory write offs? I'll try and call Micron IR on Monday and ask that question. Richard

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