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To: thomas hayden who wrote (10928)	3/16/1998 10:51:00 PM
From: shane forbes	Respond to of 25814

Tom: Well I finally had a chance to look at MU's earnings release. And it actually is a lot worse than it seems - there is a one time gain in there of 0.18. Therefore excluding this one time gain the net loss was 0.41. Now assuming the analysts estimates also excluded the one time gain then really we should be comparing a loss of 0.18 that the street was expecting vs. a 0.41 actual loss. (0.23) vs. (0.18) I would shrug off. (0.41) vs. (0.18) I would not. Also sales plunged 40% or so and gross margin plunged to 5% from 32% or something like that previously. Typical commodity type crap product type behavior! Once again though I do not know why people were expecting good results from MU, if this is a case of a (.41) loss vs. a (0.18) loss on a sales loss of around 40% or so MU has some big time explaining to do. For instance is the decline in sales entirely due to pricing pressures? But how could that be considering that prices have been relatively flat from the end of last q to now. Therefore is some of the weakness in sales because of slower unit demand? If so all the semis will be toast and if so this will confirm the INTC claim. I think MU had some production problems and there were pricing pressures. I'm hoping unit demand is still strong though in the release I think they mentioned a reduction in unit demand. Typical commodity business type results when the commodity sinks like a stone and why I don't generally like these kinds of companies - impossibility to hold these long term since there is no stability in the business ratios - but good for traders! Again it should come as no surprise to anyone that MU or any commodity type semi is facing pricing pressure this q. This was the first full q of pricing weakness since the won devaluation etc etc. MU will do better later this year. Still no warnings from the non-commodity guys such as the ALTRs and LSIs of the world. Don't expect anything from LSI but looking at MU's sales declines there should be some effect somewhere sometime I would guess. Shane.