Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 318.63

-3.0%

Feb 3 3:59 PM EST

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To: Darin who wrote (4484)	5/14/1997 12:15:00 AM
From: Skeeter Bug	of 70976

>>Micron's (Micron Electric, not MU) margins begin down were due to start up costs overseas mainly... not due to softness in the PC market...<< your attempt at spin doctoring doesn't bode well b/c the facts are against you. >>NAMPA, Idaho--(BUSINESS WIRE)--May 13, 1997--Micron Electronics, Inc. (Nasdaq:MUEI) today announced that its financial results for the third fiscal quarter ending May 29, 1997, will be adversely impacted by two significant factors. The Company currently expects that its overall gross margin percentage for the third fiscal quarter will be between two and three percentage points lower than levels experienced in the second fiscal quarter, primarily as a result of recent price reductions on PC Systems. Start-up costs for international operations, primarily in Japan, will also adversely impact third fiscal quarter earnings. The Company currently expects that PC sales for the third fiscal quarter will be approximately 10% below sales in the second fiscal quarter. << now, please explain to this thread how start up costs reduced pc sales by a WHOPPING 10% (you better hope this is in $$$ and not in units!)? we're all ears...

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