This was already known but .....Micron Electronics Lowers Quarterly Earnings Estimates
Business Editors
NAMPA, Idaho--(BUSINESS WIRE)--Nov. 30, 2000--Micron Electronics,
Inc., (Nasdaq:MUEI) today announced that primarily due to lower DRAM
pricing in its SpecTek business, earnings for the quarter ending
November 30, 2000 will be below Wall Street consensus estimates.
The company said it expects to report revenues of approximately
$385 million to $400 million for the quarter, and earnings per diluted
share between $.01 and $.04 when actual results are announced December
20, 2000.
"The primary reason for the earnings shortfall was the recent
downward trend in DRAM industry pricing," said James R. Stewart, chief
financial officer for Micron Electronics. "If DRAM pricing had held at
last quarter's levels, we'd be looking at about $85 million more in
SpecTek sales." Stewart said the company will provide a new outlook
for next quarter when it announces final results on December 20.
PC sales are now estimated to be $30 million to $35 million lower
than previously estimated due to slower holiday consumer PC sales,
which are impacting the company's VelocityNet Direct business, which
partners with major retailers. The company also said that although its
VelocityNet Direct business has expanded rapidly since its launch in
April, some of its new retail partners have taken longer than expected
to ramp up significant volumes.
The company indicated that overall PC operating results should
still be improved from last quarter, as lower operating expenses will
mostly offset any impact from lower-than-expected PC sales.
Micron Electronics Chairman and CEO Joel J. Kocher said that while
the current quarter results are weaker than expected, the company
still expects to deliver double-digit consolidated revenue growth
compared to the same quarter last year. "The DRAM market is cyclical
in nature, and there are certainly challenges in the PC business. But
the results for HostPro appear on target, and we remain focused on
executing our Internet-centric strategies." |
