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Technology Stocks : Micron Only Forum

MU 241.14

-6.7%

Dec 12 9:30 AM EST

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To: pat pasquale who wrote (34986)	6/15/1998 7:53:00 PM
From: mike iles	Read Replies (1) of 53903

pat ... not only did they get the 3 cent lift from a one-time rebate they also got way above reality gross margin on $48 million sales of notebooks ... they wrote these down in Q2 and then sold them in Q3 at higher than the written-down value ... this resulted in gross margin on the $48 million of 34% ... if we use 20% (?) as a realistic g.m. then they picked up 14 points on $48 million, or $6.7 million ... equal to 4 cents per share after tax ... so they actually had a loss of 1 cent when you do the adjustments ... I give them marks for honesty, doubt if MU would have been so forthcoming. regards, Mike

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