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To: Carl R. who wrote (39103)	9/26/1998 9:44:00 AM
From: Skeeter Bug	Respond to of 53903

>>If the marginal costs are not below selling price a fab purchased for zero cost would still be a bad investment.<< but not as bad as having fixed costs to boot, no? obviously. that is my point. the buyers would wait until prices are above marginal cost, buy up the excess capacity and then make money well fixed cost mu loses money, right? gotta cover that billion dollar nut plus all that debt, big guy. both gross and net are critical. you left out cash flow. you can be making money and go bust. did you know that if you make $100 million in reported eps but have to pony up $1 billion a year in upgrades... eventually you will run out of dough. that is why 2 bad qs wiped out 4 years of dream market for mu. great business, huh? ;-) this intel deal is very interesting. appears that intel wants to guarantee mu reports losses for the next year at least. potentially nice financial engineering. does nothing for their business long term. may even be negative. but, it will make those almighty reported eps higher than they therwise would be - for a while. not mu, intel. ;-)