Micron Electronics (MUEI) Message Board

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Technology Stocks : Micron Electronics (MUEI)

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To: Sunny Jim who wrote (2762)	12/31/1997 8:22:00 PM
From: jgercke	Read Replies (2) of 4074

To my knowledge, the sale of Micron Custom Manufacturing Services (MCMS) for +/- 270mm has nothing to do with the cancellation of the arrangement with CMC Industries. MCMS does not have anything to do with the assembly of PC's, but is " a contract manufacturer specializing in the design, assembly and testing of custom complex printed circuit boards, memory modules and system level products," to quote from MUEI's 10K. MUEI's own workers have been assembling desktop units but "The Company's Transport notebook PC systems are currently assembled by third-party manufacturers," to quote the 10K again. Presumably one such third party was CMC Industries. The news was significant enough for them for their stock to fall 40% today. MUEI does have a new production facility coming on line in 1998 in Nampa, Idaho, which may have something to do with this move. I couldn't disagree more with the comment " that the pieces of the puzzle don't fit very well." MUEI is streamlining its organization and divesting businesses unrelated to PC operations, consistent not only with successful execution of their BTO model but also with dressing up for sale.

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