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 : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: TideGlider who wrote (11572)	12/15/1997 7:27:00 PM
From: Melkon Khosrovian	Read Replies (1) \| Respond to of 25960

Micron faces crossover By Darrell Dunn and Jack Robertson After profitably weathering a year of steep price declines in its core DRAM business, Micron Technology Inc. is now facing the potentially more difficult crossover to 64-Mbit devices. That crossover appears to be drawing near. Spot prices of 64-Mbit devices last week dropped below $27, while spot prices of 1-Mx16 EDO DRAM fell to $4.95, with other types of 16-Mbit DRAM in the $5 to $6 range, according to the American IC Exchange, Aliso Viejo, Calif. The 64-Mbit devices are now within $1.50 to $2 of reaching bit-price parity with 16-Mbit devices. Such parity has historically triggered a move by memory module makers to the next-generation chip. Analysts believe that numerous challenges face Micron, which reported net income of $332 million on revenue of $3.5 billion for fiscal 1997 ended Aug. 28, compared with net income of $594 million on revenue of $3.6 billion in fiscal 1996. "They've got a double whammy facing them," said Drew Peck, an analyst at Cowen & Co., Boston. "Micron has historically been slow to make the transition to the next generation, and second, the new-generation 64-Mbit DRAMs seem to be falling on a much steeper price curve than we've seen in previous generations. By the time Micron can make the crossover, we may have already seen all the profitability squeezed out of the 64-meg." The company has 64-Mbit DRAM in limited production. Steve Appleton, chairman and chief executive of Boise, Idaho-based Micron, said he was pleased with the company's performance in "earning a 9% net profit in spite of an approximate 75% decline in semiconductor average selling prices." For the fourth quarter, Micron reported net income of $72.1 million on revenue of $946.2 million, compared with net income of $18.6 million on revenue of $700.5 million a year ago. Micron, which is believed to have taken the worldwide unit volume lead in DRAM production this year, attributed its success in the ongoing DRAM price downturn to its ability to improve yields by moving its fabs to 0.3-micron production on 8-in. wafers. Micron and its memory competitors Samsung Electronics Co. Ltd. and Toshiba Corp. have predicted that the 64-Mbit crossover will not occur until the first or second quarter of 1998. Copyright (c) 1997 CMP Media Inc. techweb.com