Silicon Investor (SI) -- The First Internet Community

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 -- Ignore unavailable to you. Want to Upgrade?

To: Rob S. who wrote (50937)	3/22/2000 12:26:00 AM
From: DJBEINO	Read Replies (3) \| Respond to of 53903

Micron Tech's Memory Chip Prices Fall 20% in 2nd Qtr 3/21/00 5:33:00 PM Source: Bloomberg News Boise, Idaho, March 21 (Bloomberg) -- Micron Technology Inc., the biggest U.S. maker of memory chips for personal computers, reported second-quarter earnings below estimates and said the average price for its chips fell 20 percent, sending shares lower. Net income rose to $161.3 million, or 58 cents a share, for the quarter ended March 2, from profit from operations of $34 million, or 12 cents, a year ago. Sales rose 36 percent to $1.39 billion from $1.03 billion. Micron shares fell as much as 12 percent after the earnings report. Investors reacted to the 20 percent drop in the average price for Micron's personal-computer memory products in the quarter compared to the fiscal first quarter. Falling prices resulted from companies delaying PC purchases because of Year 2000 computer bug issues, an analyst said. 'The demand for two-thirds of the quarter was not that great,' said Jack Geraghty, an analyst at Gerard Klauer Mattison, who rates Micron a 'buy.' The company was expected to earn 74 cents a share, the average estimate of analysts polled by First Call/Thomson Financial. Forecasts for the most recent quarter ranged from 50 cents to $1.06 a share. Micron's shares dropped 16 3/8, or 12 percent, to 119 1/4 on electronic networks after 4 P.M. New York time. In regular trading on the New York Stock Exchange, Micron fell 3 1/8 to 130 1/2. Companies stocked up on PCs to prepare their computer networks for the Year 2000 at the end of last year. They didn't need to buy new machines until after the first two months of this year, Geraghty said. Prices for dynamic random access memories, the most common memory chips in PCs, slipped to an average of $6.50 for a 64- megabyte chip from $10 in the December period, said Ragen MacKenzie Group Inc. analyst Daniel Nelson. Micron ships hundreds of millions of chips, so price variations have a big effect on sales and earnings. Prices will improve in the second half of the year, said Thomas Weisel Partners analyst Eric Ross. And because Micron has boosted production by about 30 percent since the December quarter, it could see sales climb as demand surges in coming months. half,' he said. 'If there's not a shortage, it will be very tight. Micron is the best positioned to take advantage of that because they already have the capacity in place.' Memory prices rise and fall most when the industry tries to either add more manufacturing capacity to meet surging demand or rein in production to cope with falling sales. Micron's stock had more than doubled in the past month on signs that DRAM prices are rebounding from lows in January, making the chips Micron is selling more profitable. Higher prices will lead to more revenue. Analysts have said that DRAM sales will almost double again this year after doubling last year on back-to-school PC buying. That's well above the average 80 percent growth in the last few years. 'We're seeing robust demand in the current quarter,' Micron Chief Executive Steven Appleton said on a call with analysts. Micron's cost for making DRAMs is among the lowest in the industry, letting it wring more profit from each chip. 'The company always does a good job in the factory,' said Ragen MacKenzie's Nelson. Micron had no gains or charges in the quarter. Including a charge for selling its flat panel display assets and other charges, net income for last year's quarter was $22.4 million, or 8 cents a share.

To: Rob S. who wrote (50937)	3/22/2000 9:49:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 53903

3/22/00 MU Micron Technology Reiterated 'Buy' at Warburg Dillon Read - Bloomberg 3/22/00 MU Micron Technology Raised to 'Strong Buy' at Thomas Weisel - Bloomberg 3/22/00 MU Micron Technology Reiterated 'Strong Buy' at ABN Amro - Bloomberg 3/22/00 MU Micron Tech Reiterated Near-Term 'Buy' at Merrill