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Technology Stocks : Micron Only Forum

MU 237.40

+8.9%

3:59 PM EST

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To: Dave Gahm who wrote (42234)	1/14/1999 10:41:00 AM
From: Thomas G. Busillo	Read Replies (1) of 53903

Dave, outstanding! You're absolutely right on the megabit v. sales issue. The company chose to use the word "output" in the total semiconductor memory output increased approximately 10% as compared to the fourth quarter of fiscal 1998. So could it be that the definition of "output" is "whatever number's higher"? <g> It's effective - total megabits shipped actually fell 10% sequentially in spite of the big holiday season AND the inclusion of 2 months of output from the TI fabs, but the stock's 25 pts. higher. I think it sucks, because although managing info with an eye toward the stock price does obviously raise the stock price, it limits the quality of decision-making on the part of existing shareholders. The closest they got to a 16/64 breakdown in the 10-Q was The Company's principal memory product in the first quarter of 1999 was the 64 Meg DRAM, which comprised approximately 65% of the net sales of semiconductor memory products. FWIW, "Inside baseball management stuff": Tech Semi and KTI Semi will drive Micron management insane. Potential for huge corporate culture clash, given MU's autocratic management style and lack of experience in managing these type of JV arrangements (I'm assuming this will be their first of this type). I'd like to know how Tech Semi and KTI are incentivized outside of the threat that MU can buy elsewhere, but I can't find the "shareholders agreement" they refer to in the exhibits. What it means to the bottom line, I don't know. Could be great for the bottom line and still drive them insane. Good trading, Tom

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