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To: DavidG who wrote (24855)	12/7/1997 11:23:00 PM
From: DavidG	Respond to of 53903

skeeter, << If one underestimates MUs asp by just $.25 this directly impacts MUs bottom line by a nickel...and of course this is true for overestimating MUs cost. >> Its getting late, I calculated wrong it should have be $.12 not a nickel. DG

To: DavidG who wrote (24855)	12/8/1997 4:08:00 AM
From: Skeeter Bug	Respond to of 53903

dave, the difference between, $0.00 and a $0.05 is not much. the gross direction is down and has been obvious since mu was $50 going to $60. however, i didn't think it would be this bad. ops eps will not be more than $0.11. a 66% qtly decline in profits is not a good thing. future estimates will be slaughtered going forward. everyone will be at or under $1.00 for 1998.

To: DavidG who wrote (24855)	12/8/1997 9:23:00 AM
From: mike iles	Read Replies (2) \| Respond to of 53903

Dave, I'm only going to try this once and then I give up. MU is not reducing their costs in absolute dollars. Do the work, break out the numbers, hey costs are going up. Of course they're going down on a per unit basis but actual total dollar number is going up ... and will be about $380M when they report next week. Now I know your next post is going to say hey volumes going up, ASPs are $4.00 (I mean you make Kippy look pessimistic) and costs are going down to $340M ... yeah they got more equipment, more people, more production and costs are going down. Perhaps you could provide some historical data on costs so we can plot when costs will hit zero!!!! That way they can handle the new rebate price. 'MU ..... it's a hard rain that's a gonna fall' regards, Mike