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Technology Stocks : Micron Electronics (MUEI) -- Ignore unavailable to you. Want to Upgrade?

To: Harold S. who wrote (2363)	11/21/1997 9:12:00 AM
From: Steve Becker	Respond to of 4074

Micron Electronics, Inc. Anticipates Lower First Quarter Earnings Friday November 21, 8:47 am Eastern Time biz.yahoo.com Company Press Release NAMPA, Idaho--(BUSINESS WIRE)--Nov. 21, 1997--Micron Electronics, Inc. (the ''Company'') announces that it expects results of operations for its first quarter of fiscal 1998, ending on November 27, 1997, will reflect a modest increase in net sales compared to the fourth quarter of fiscal 1997, but will reflect significantly lower net income. Micron Electronics anticipates that consolidated net sales for the first quarter of fiscal 1998 will be nearly 30% higher compared to the first quarter of the preceding year and approximately 10% higher than the fourth quarter of fiscal 1997. Although the growth in unit sales of PC systems is expected to reflect an approximate 30% increase compared to the same period in fiscal 1997, this level is lower than previously expected by the Company. As a result, the Company's inventories of PC components increased compared to the level on hand as of the Company's fiscal year end. The high level of inventories in conjunction with increasing price pressure, particularly on notebook products, is expected to adversely affect the Company's gross margin for the first quarter of fiscal 1998. In addition, the Company's selling, general and administrative expense is expected to be higher as a percentage of net sales for the first quarter of fiscal 1998 compared to the fourth quarter of fiscal 1997. As a result of these factors, the Company's management currently expects net income for the first quarter of fiscal 1998 to be minimal. This press release contains forward looking statements with respect to, among other things, future results of the Company's operations. Such forward looking statements are subject to a number of risks and uncertainties which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, without limitation, industry competition, failure to accurately predict inventory usage, fluctuating market pricing for PCs and semiconductor memory products, fluctuating component costs, changes in product mix, inventory obsolescence, the timing of new product introductions by the Company and its competitors, availability and pricing of the memory components used by the Company's SpecTek semiconductor memory products operation, the timing of orders from and shipments to OEM customers, seasonal government purchasing cycles, manufacturing and production constraints, the effects of product reviews and industry awards, seasonal cycles common in the PC industry, critical component availability, the failure by the Company to successfully integrate the operations of NetFRAME and failure to achieve acceptable profitability of the Japan PC operations. Additional risks are detailed in the Company's filings with the Securities and Exchange Commission, including its report on Form 10-K for the year ended August 28, 1997. www.micronpc.com