Micron, then and now: Company’s fortunes linked to industry, markets
idahostatesman.com
In 1998, Micron:
• Had one semiconductor plant in Boise and had started building a facility in Lehi, Utah. The company also owned Micron Electronics, which produced MicronPC personal computers at a site in Nampa.
• Had about 9,000 employees, all in the Treasure Valley.
• Had $1.39 billion in net sales for memory products.
• Declared an annual loss of $233.7 million.
• Reported assets of $4.68 billion.
• Had cash and liquid investments totaling $649 million.
In 2002, Micron:
• Has seven manufacturing facilities, including the headquarters in Boise, and facilities in Utah, Virginia, Italy, Scotland and Japan, and a joint-venture site in Singapore. The company next month is set to open a Photomask facility in Boise. Crucial Technology, a division of Micron that sells memory modules and other peripheral equipment, operates in Meridian. The company has additional design facilities in California, Minnesota and Norway.
• Has more than 18,000 employees, including 11,500 in the Treasure Valley.
• Had net sales of $3.9 billion in 2001; for the nine months through May, the company reported revenues of $1.84 billion. Total 2002 sales will be reported Tuesday.
• Declared an annual loss of $521 million for 2001; similar losses for 2002 expected to be announced next week.
• Reported assets of $8.1 billion in May 2002, the last time the company reported financial information.
• Has cash and liquid investments totaling $1.25 billion, as of May 2002.
What do slumping industry and falling share prices mean:
• For Micron? The company has to focus on its process technology to force its production costs downward. The Boise firm has a reputation in the industry for being the low-cost leader. Taking a broader view, the falling share price shows a lack of confidence in the market demand for Micron´s product. Lower consumer confidence translates into lower consumer spending, thus decreasing demand and affecting the company´s sales and industry prices.
• For investors? Investors buying 100 shares of Micron on Sept. 19, 1998, would have spent $3,200.
If they held those shares, they would have participated in a 2-for-1 stock split in May 2000, for a total of 200 shares. In August 2000 those 200 shares would have been worth $17,600.
On Friday, when the stock fell to its four-year low, those 200 shares were worth $2,774.
Who owns Micron shares?
Ownership is 76 percent institutional investors; 11 percent by company insiders and large individual investors; 13 percent individual investors.
What do analysts say?
Industry and financial analysts believe Micron is feeling the pinch after six straight quarters of losses. With back-to-school computer sales not rising to expectations, analysts believe the company next week will again report a year of disappointing losses. While one analyst said firms can withstand only so many losses, Micron still has his confidence. “I wouldn´t write Micron off,” said Matt Godfrey of Semico Research Corp. in Phoenix.
— Julie Howard
Edition Date: 09-22-2002 |
