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Technology Stocks : Micron Only Forum

MU 246.84

+4.2%

Nov 14 9:30 AM EST

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To: Mike M2 who wrote (26582)	1/15/1998 1:19:00 PM
From: DavidG	Read Replies (1) of 53903

Mike, << I won't waste a lot of time debating details about costs but consider the fact that Micron only made $10 million dollars with asp of $4.50. This tells me that Micron's costs are closer to Earlie's estimates than yours. >> I am no F/A expert and I am the first to admit it, but I think you are mixing apples and oranges...Also I believe they indicated their asp was closer to 4.90. Remember, MUEI is also included in those cost numbers. If I find the past commentary, I will repost it regarding MU gross costs for 16mb chips. They actually indicated that MU got the per chip cost down to $3. When I calculated the estimated eps for 1Q98 I used $3.50 and it came out close(but I calculated out an asp from Smiths Site at $5.12). With the asp actually a little lower it meant the cost was probably a little lower to obtain the same eps. The only problem I ran into was the SG&A which was $28mil higher than last quarter reducing the eps by $.13...and this was primarily due to MUEI TV advertising...Otherwise MU would have earned $.17 instead of $.04. MUEI has a significant impact on MUs bottom line that I do not believe people are taking into account. Some food for thought, Samsung bought ASTA last year, maybe you can find out how they separated out the pc vs semi costs. Good Luck DavidG PS: I'll bet samsung now regrets buying ASTA.<g>

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