Tomorrow may be even better than today-Micron blows away analysts estimate.
T.R.
Hang on my friend,tomorrow may be even better than today.
I have a feeling that ex DELL executive who went over to MUEI has something to do with all this.<g>
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Monday, September 28, 1998
Excerpts
Micron Electronics shocks analysts in fourth quarter
By Larry Barrett
September 28, 1998 4:59pm
ZDII
Micron Electronics Inc. (Nasdaq: MUEI) shattered analysts' estimates in its fourth fiscal quarter Monday, returning a profit of $16.2 million, or 17 cents a share, on sales of $339 million. Micron Electronics shares closed up 3/16 to 16 15/16 ahead of the earnings report.
First Call consensus pegged the personal computer vendor for a profit of only 2 cents a share in the quarter.
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"We are two quarters into our four-quarter plan to return Micron Electronics to profitable growth and we are progressing ahead of schedule," said chief executive Joel Kocher in a prepared release. We ended the fiscal year with tangible evidence that our strategy is working; we are realizing ongoing improvements in our business operations, exacting execution of the direct model and achieving sequential unit growth."
In the quarter, Micron Electronics enjoyed gross profit margins of 18 percent in its PC business, up from 17 percent in the third quarter and 16.3 percent in the year-ago quarter.
After watching the tremendous success of direct-sales PC vendors such as Dell Computer Corp. (Nasdaq: DELL) and Gateway Inc. (Nasdaq: GTW), Micron Electronics focused on becoming a faster-moving and more responsive vendor.
It ended the fiscal year with PC inventories of $27.7 million, 70 percent lower than the same point last year.
PC sales were 9 percent higher than the third quarter with desktop units growing 14 percent and server unit sales increasing 28 percent over the third quarter. But notebook sales fell 20 percent versus the third quarter after Micron Electronics began its transition to Pentium II-based notebook products.
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