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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (26472)	12/20/2000 6:27:05 PM
From: Dealer	Respond to of 65232

MU--Micron Technology Earnings Below Forecast SAN FRANCISCO (Reuters) - Micron Technology Inc. (NYSE:MU - news), one of the largest makers of memory chips used in personal computers, on Wednesday reported first quarter profits that fell short of expectations as sales fell 30 percent from the previous quarter, crimped by slowing demand. The company, based in Boise, Idaho, said that, for the period ended Nov. 30, it had profits of $352 million, or 58 cents a share, compared with $341 million, or 60 cents, a year earlier. Sales fell 30 percent from the previous quarter to $1.6 billion. The results fell below the consensus forecast of 60 cents a share, according to First Call/Thomson Financial. But estimates ranged widely, from 40 cents to 81 cents. Micron Technology, like other high-technology companies, has been hurt by expected holiday sales of personal computers that never materialized. Intel Corp., the world's biggest chipmaker, Microsoft Corp., Gateway Inc. Apple Computer Inc. and others have all said PC sales to date have been disappointing. Earlier in the day, Thomas Weisel Partners analyst Eric Ross downgraded the stock to market perform from buy, writing in a note to clients that the stock is not as attractive at these levels. Micron Technology fell $4-13/16 to $29-15/16 in trading on the New York Stock Exchange (news - web sites), a decline of almost 14 percent, amid a sharp decline for technology stocks. ``We caution value investors from stepping in too early, given the continuing prospect of bad news,'' Ross wrote. Micron Technology said the 30 percent decline from the previous quarter was due to a 25 percent decrease in megabits shipped and a roughly 10 percent decline in average selling prices for its dynamic random-access memory, or DRAM, chips. ``Since quarter end, market conditions for our primary products have continued to weaken resulting in significant declines in average selling prices and higher inventory levels,'' said Chief Executive Steve Appleton in a statement. Prices for DRAM continued to decline, Ross wrote, adding that DRAM spot-pricing has fallen below $3.25 and that it was possible for them to drop to the mid-$2 range. ``While we do not believe that we are in the trough of a downturn currently ... we note that Micron could possible trade down to $16 to $17 at its trough,'' Ross wrote