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Technology Stocks : Micron Only Forum

MU 201.37

-10.9%

Nov 20 3:59 PM EST

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To: Earlie who wrote (25465)	12/15/1997 11:13:00 PM
From: Tim McCormick	Read Replies (5) of 53903

Tim's conf. call notes- 44% of consolidated revs. from DRAM 481M in inventory carried at production cost, not carried at market value SDRAM currently 25% of 16mb inventory 850M in total debt ASP on DRAM just under $5.00 6% bit growth 3-4 months of test equipment problem still ahead Bit growth would have been 10% higher w/o test prob. Test problem not due to delivery of equipment, but higher complexity of doublesided modules. Recent contract pricing at $3.50, going under $3.00 soon. Would not enter large contract at $2.50 to $2.75 now, eventhough Korean spot is $2.20. 64mb run rate currently 500,000 annual units, contract pricing on 64mb in $15 to $18 range. Koreans liquidating inventory ASAP and are assumed to be running at low levels but don't know for sure- Japanese inventory at normal 3-4 week range. SG&A to run 130-140M per qt. this year, R&D to run 150M for whole year. SG&A increase from MUEI/Netframe personell and national ad campaign- ad $ spent in JAPAN Also. Bit growth to be in low single digits each sequential quarter. MUEI was 4% of MU DRAM sales. Avg. OEM configuration now over 32MB. Depreciation and Amortization to run around $615M for full year coming. 64mb crossover in second half. SDRAM production currently almost 70% of units. Percent of units sold in spot market at 15% last qt. Unlike pevious conf. calls there were no complements. Refused to answer question about loss in the current qt. 3 times. Analysts conveyed tone of frustration over lack of forward visibility. Tim

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