Don't forget that new management is responsible only for the last two
quarters.That is why comparison of this quarter to last quarter is
more relevant.The sequential revenue growth of 19% and PC unit growth
of 21% is not as high as Dell,but it is significant for a company that
is first building name recognition in the U.S. PC market.
The beautiful thing is,that MUEI also decreased PC inventories to 25.2
million dollars,or seven days of inventory (DSI) compared with 11 days
in the fourth quarter.Based on current sales,this is an inventory turn
of 46.8 turns per year,which is up from 33.4 turns in the fourth
quarter of fiscal 1998.This allows the company to control the cost of
goods purchased,because MUEI can reduce the sales price of their
computers within 7 days(depletion of inventory)of any reduction in
costs of raw material.
Now with MUEI's chance of having a full quarter's use of the bigger
sales force,the Micron University web site,(which will be a big money
saver for big corporations)and increased advertising to to spread the
MUEI name,the best is yet to come.
MUEI now has the right management,led by Joel Kocher,to realize the
full potential of this great technology company.
Overall,I am very satisfied with the progress so far.
Good luck,
Manny T.
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