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To: mike iles who wrote (26756)	1/17/1998 2:10:00 PM
From: DavidG	Respond to of 53903

Mike, >> e.g. he's still asking about how MUEI's costs affect MU ( to repeat Dave it's on the public record ... to de-consolidate MU's income statement you subtract MUEI's numbers from MU's... e.g. you subtract MUEI's SGA expense, yes it's in their 10Q, from MU's SGA expense and voila you got the SGA expense for just the semi business)... I don't know why he's so obtuse, maybe because he's got a Phd in math or something (g) <<< Mike, You seem to have as much of a problem as Skeeter in following the issues on the thread. I do not care one iota about how MUEI's costs affect MU. The two of you seem to waste so much time and cause so much aggravation at trying to answer questions that nobody ever asks or cares to know. For the very last time, the issue is... is MU a low cost producer of 16mb chips...PERIOD. Now Skeeter and some others on this thread have the misconception that all one needs to do is look at the eps for the last quarter and one could easily show their cost per 16mb chips. I indicated( and believe me I totally regret this) that it is not that simple b/c as an example MUEI expenses are embedded in all the numbers. Now I still don't believe this it is a trivial matter to remove all MUEI embedded costs, but this is far from the only problem. You have to know the breakdown costs of items within the R&D budgets, you have to the know the entire MU Product line and their associated costs. Remember, although MUs main product is 16mb chips it does not mean the associated costs are spread proportionately across the product line...e.g. R&D may go more to undeveloped products such as the new Teradyne test systems for 64mb chips. Mike, we went through this many times before on similar issues. I have never ignored your questions. I just do not agree with your numbers since they always seem to be negatively biased against MU. I believe you are fooling yourself if you can not objectively weigh the negatives and positives of MU in the the semi business. Remember it is your money you are losing if you invest based on fundamentals that are wrong. DavidG