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

To: Skeeter Bug who wrote (35005)	6/16/1998 12:22:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 53903

Micron Electronics' Third-Quarter Profit Beats Expectations Bloomberg News June 15, 1998, 2:23 p.m. PT Micron Electronics' Third-Quarter Profit Beats Expectations Nampa, Idaho, June 15 (Bloomberg) -- Micron Electronics Inc.'s fiscal third-quarter profit beat expectations as the personal-computer maker's new president succeeded in cutting costs to keep up with rapidly falling prices. Net income in the quarter ended May 28 fell 70 percent to $5.93 million, or 6 cents a diluted share, from $19.7 million, or 20 cents, a year earlier. Sales fell 33 percent to $340.8 million from $511.4 million at the Nampa, Idaho-based company. Though earnings fell, they exceeded analysts' expectations, showing that President Joel Kocher has been able to cut costs and make money even as PC prices tumble. Kocher came to Micron from Dell Computer Corp., where he was a sales executive, in January. ''I'm impressed,'' said Kimball Brown, an analyst at Dataquest, a San Jose, California-based market-research firm. ''Doing this now is impressive,'' given that PC prices are falling rapidly because of a glut of machines at retailers, he said. Analysts expected Micron Electronics to earn 3 cents a share, according to the average of estimates gathered by IBES International Inc. Micron's gross margin -- the percentage of revenue left after manufacturing costs are subtracted -- widened to 19.2 percent in the quarter from 15.6 percent a year ago. Micron Electronics is majority owned by Micron Technology Inc., a maker of memory chips used in personal computers and other electronics. Micron Technology, based in Boise, Idaho, is scheduled to report earnings Thursday.