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

To: DavidG who wrote (26588)	1/16/1998 1:00:00 AM
From: Skeeter Bug	Read Replies (2) \| Respond to of 53903

dave, listen closely. muei made close to $1,000,00. mu owns about 66% so they included $660,000 in their eps report. your contention that muei's increased expenses TOOK AWAY FROM MU'S SEMI PROFITS is absurd. muei contributed a PROFIT (all revenues minus ALL EXPENSES - including the expenses that you say took away from semi earnings) CONTRIBUTED TO MU'S EARNINGS AND DID NOT DETRACT FROM THE SEMI BIZ. since mu reported earnings (including muei of $9.6 million. THEREFORE, mu's semiconductor (very, very big piece of pie) and their various non-muei subsidiaries earned $9,000,000 or so, THE FACT IS 180% OPPOSITE WHAT YOU SAY. YOU SAY MUEI HURT MU'S SEMI BIZ WHEN THEY ACTUALLY HELPED. since mu's dram business is many times bigger then all their small subsidiaries, it is reasonable to ignore the smaller subsidiaries (mu doesn't break out the individual statistics for the subs). we do know the dog is the dram/sram biz and the tail is the subs. therefore, mu made qpproximately $9 million from their semi biz with an asp of $4.90. they shipped about 100 million units to make $9 mil. therefore their net cost is very close to their asp minus $0.09 or in the $4.80 range - much higher than you dream. the gross cost is $3.27 or $4.80 * (1-.32) where .32 represents their stated gross profit margin of 32%. what have we learned? 1. net cost is around $4.80 and gross cost is about $3.27. 2. you assertion that muei costs cut away from mu profits is not based on fact but fiction. we also know that depreciation will consume an EXTRA $30 million per q, on average, going forward for 3 qs. we also know mu's average net and gross costs go down every q. a reasonable estimate is just under 10% per q. good luck all. ps - it is a great tragedy when dreams are mauled by a gang of vicious facts. ;-)