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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Bill F. who wrote (63075)	6/23/1999 5:36:00 PM
From: Skeeter Bug	Respond to of 132070

one two punch. amd and mu report disasters...

To: Bill F. who wrote (63075)	6/23/1999 5:47:00 PM
From: Knighty Tin	Read Replies (2) \| Respond to of 132070

To All, Micron reports the loss of a dime and the end of Microstamp development. This was a shocker all the way around. Microstamp was going to be the product of the future and there was no way it could lose. I had some very nasty arguments with many folks on The Micron Only thread back in 1996 and 1997 on this subject. One geek whom I believe was a co. paid shil even told me I was "plastic", whatever the Hell that meant, because I didn't recognize that MU would own the planet due to its RFID technology. By 1999, every package delivered in the world would have a Microstamp stuck to it. Well, plastic is as plastic does. <g> This will be a writeoff of $9-12 million, or an extra loss of 3-5 cents per share next quarter. This looks like a semi-honest number with no attempt to stuff other costs into the writeoff. Is there a pod in Micron's basement? <g> Anyhoo, here are my notes on the scam, er, report for the quarter: 1. Megabits increased 17% while sales increased 8%. Anyone else see a problem with these %ages in an era of oversupply? 2. Inventories soared to $442.5 million from $291.6 million last September. That is 52% in dollars. Just think what it is in UNITS. 64 Mbit DRAM is down at least 35% in price from last year. Those warehouses must be well and truly stuffed. 3. Cash continues to disappear at an alarming rate, $208 mm this quarter. What did Earlie say about the debt holders eventually owning this co.? More to the near term, does anyone expect the cash position to not be much worse this quarter? At this rate of burn, they have less than two years of existence left. But the burn will increase geometrically when they start paying interest on their debt, assuming they don't just default at that time. 4. Long term debt up more than 100% for the nine months, which is no surprise. Shares up 28% year over year. This co. has been able to raise cash from suckers, but they are sure churnin' and a burnin'. 5. They also wrote down their flat panels, semiconductor memory products, while offsetting some of the expense with $10 million that they are no longer accruing for employees. Must be some unhappy campers in Boise. 6. Net, net, they had a disastrous quarter, much worse than the dead fish expected. They hid the majority of their losses with a huge inventory buildup. Things are getting worse, much worse, from here.