Micron Only Forum Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Micron Only Forum

MU 286.68

+3.8%

Dec 24 12:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Bipin Prasad who wrote (36966)	8/6/1998 10:25:00 AM
From: phbolton	Read Replies (1) of 53903

Some homework. Last quarter MU had $270 in sales, $170 in losses and a cost of goods of $320. This is a gross margin of -15%. Total cost and expenses was $440. Now, unless there is some miracle of accounting, to get to even they have to get semi sales up well over $450. Prices have been only down a few percent over the five weeks of this quarter but they are still 20%, or more, below the average of the prior quarter. So MU still loses $0.50 or more this quarter. Look at their long term prospects this way: assuming the same level of sales the cost of goods has to drop from $320 to $150 to reach the break even point. They have about $120 in fixed costs which is 44+% of revenues. When will the cost cutting (layoffs) begin? Also: there are apparent discrepancies between the MUEI and MU statements of about $30 mil here and there. And yeah, they wrote off inventory last quarter but so what.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next