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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: Earlie who wrote (25465)	12/15/1997 10:51:00 PM
From: Bharat H. Barai	Read Replies (2) \| Respond to of 53903

I have a brother in law who is the International marketing manager of a very reputable billion dollars plus company, specializing in various memory products. My statement is based on his knowledge in this field. Yes it is true that Korean problems are not just DRAM related. They are related to below cost pricing of disk drives, computers and other electronics products. They are also related to foolish Korean chaebols investments like Zenith-LG Electronics, Maxtor-Hyundai, AST-Samsung and list goes on. All these insane money losing propositions came about because of corrupt and irresponsible Korean banking system that kept on supplying money without any rational or accountability. 100 Billion dollars in debt are due by Dec. 1998 for a country that has few natural resources or foreign exchange reserves. Japanese economy and banks are in trouble because of their sweet heart lending practices to corrupt economies like Korea. While the present situation is pitiful, he and I both feel that the DRAM prices are about to rise to more rational levels within days, not weeks or months. The value of a company is not simply based on today's earnings. It takes lot of organization, superb technology, multi billion dollars hardware, trained work force and sound business practices. It has taken all of the above to have a company like Micron, producing Billion dollars worth of DRAM at present pitiful prices. No amount of bashing on SI can create or destroy such entities in few weeks or months. Bharat H. Barai

To: Earlie who wrote (25465)	12/15/1997 11:13:00 PM
From: Tim McCormick	Read Replies (5) \| Respond to of 53903

Tim's conf. call notes- 44% of consolidated revs. from DRAM 481M in inventory carried at production cost, not carried at market value SDRAM currently 25% of 16mb inventory 850M in total debt ASP on DRAM just under $5.00 6% bit growth 3-4 months of test equipment problem still ahead Bit growth would have been 10% higher w/o test prob. Test problem not due to delivery of equipment, but higher complexity of doublesided modules. Recent contract pricing at $3.50, going under $3.00 soon. Would not enter large contract at $2.50 to $2.75 now, eventhough Korean spot is $2.20. 64mb run rate currently 500,000 annual units, contract pricing on 64mb in $15 to $18 range. Koreans liquidating inventory ASAP and are assumed to be running at low levels but don't know for sure- Japanese inventory at normal 3-4 week range. SG&A to run 130-140M per qt. this year, R&D to run 150M for whole year. SG&A increase from MUEI/Netframe personell and national ad campaign- ad $ spent in JAPAN Also. Bit growth to be in low single digits each sequential quarter. MUEI was 4% of MU DRAM sales. Avg. OEM configuration now over 32MB. Depreciation and Amortization to run around $615M for full year coming. 64mb crossover in second half. SDRAM production currently almost 70% of units. Percent of units sold in spot market at 15% last qt. Unlike pevious conf. calls there were no complements. Refused to answer question about loss in the current qt. 3 times. Analysts conveyed tone of frustration over lack of forward visibility. Tim