Skeeter, if memory serves, MU had $400 in depreciation charges in the six months ending April, this was a charge against earnings, but a non cash charge, thus they have generated this cash to invest back into the business. I would presume that the same depreciation rate would more or less apply this quarter (or more if they have put into production new equipment they paid for in the first half, about $150 MM if memory serves). If they had no other commitments for CAPEX the yearly rate of depreciation of $800 MM should be enough to equip Lehi, if by then the DRAM market capacity has not reached twice the demand.
Skeeter, remember the "scenario" for conversion, as far as the street is concerned, there are still a lot of underwriting fees to be gotten from this one, and what need to be done, will be done, short of a major break down in the market in general or the SOX (which right now is already assuming something like a 20% YOY growth in semis, I must admit). It seems that the party is young.
Zeev |
