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

To: mike iles who wrote (35412)	6/19/1998 11:42:00 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 53903

Mike, I agree that Mu may have bought themselves another quarter or two of existence. TI got rid of a crappy liability and paid to do so. All he got was worthless paper, nothing stock and an IOU that will never be paid. MU, of course, took on more antiquated capacity, which they needed like a hole in the head. But the key, as you mentioned, was the cash infusion. They bled nearly $280 million in cash last quarter, and prices are MUCH worse today. They had less than 3 quarters to go at 3rd quarter burn rates and probably 2 quarters of existence at current burn rates. The new capacity fuels their burn rate of cash tremendously. Still, this free money should allow them to survive until this time next year if things don't improve. They have to do a self-destructive deal like this because there is simply no other source of cash for a junk company as the cycle starts to turn south a bit. MB