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To: DJBEINO who wrote (4048)	9/28/1998 11:12:00 PM
From: DJBEINO	Read Replies (1) \| Respond to of 9582

Micron Tech posts narrower-than-expected loss BOISE, Idaho, Sept 28 (Reuters) - Computer memory chip maker Micron Technology Inc.(NYSE:MU - news) reported a large quarterly loss on Monday, but the loss was narrower than many Wall Street analysts had expected. The Boise, Idaho-based company said it lost $89 million, or 42 cents a share on a diluted basis in its fiscal fourth quarter ended Sept. 3 versus a year-ago profit of $72 million, or 33 cents a share. Wall Street analysts had expected the company to post a loss of 54 cents a share, according to First Call, which tracks analysts' estimates. ''People were looking for a lot worse than that,'' said Dan Niles, a BancBoston Robertson Stephens analyst. ''The losses were a heck of a lot narrower than what people thought.'' Revenues fell to $692 million from $946 million. The losses and drop in revenue in fiscal 1998 were primarily due to severe declines in selling prices on its semiconductor memory products, the company said. It said per megabit prices fell about 60 percent in fiscal 1998 following a 75 percent drop in fiscal 1997 and a 45 percent decline in fiscal 1996. ''While this has been a challenging year, we have positioned Micron as the lowest cost DRAM (dynamic random access memory chip) manufacturer and have a significant edge on our competition,'' Micron Technology Chairman Steve Appleton said in a statement. ''Although we cannot yet determine if recent stability in the market will be sustained, current market conditions are encouraging,'' he said. Some analysts said Micron executives were optimistic on a conference call after the earnings, saying that memory chip prices are up about five percent, for contract purchases, in the last month. ''That tells you how strong demand is,'' Niles said, adding that he believes Micron's shares will rally again Tuesday. On Friday, Micron's stock jumped amid rumors that chip giant Intel Corp. is considering buying a minor stake in Micron. Niles said that Micron executives would not discuss the rumor, which he said he did not discount. ''They want to keep DRAM capacity free-flowing,'' Niles said, referring to Intel. Intel's microprocessors are the brain chips of most personal computers, while memory chips are another major component. Separately, direct PC-seller Micron Electronics Inc, which is 60 percent owned by Micron Technology, posted moderately higher profits for its fiscal fourth quarter. Nampa, Idaho-based Micron Electronics (Nasdaq:MUEI - news) reported net income of $16.2 million, or 17 cents per share, on net sales of $339 million for its fiscal fourth quarter ended Sept. 3. That compared with net income of $15 million, or 16 cents a share, on net sales of $513.1 million a year ago. ''We experienced an increase in demand across our product lines in the latter part of the quarter that points to a positive reception to our more competitive product pricing and aggressive sales and marketing,'' Micron Electronics Chairman Joel Kocher said in a statement. Kocher, formerly the head of Macintosh clone maker Power Computing Corp. and also a former Dell Computer Corp. executive said that the company is ahead of its four-quarter plan to return Micron to growth. ''We are two quarters into our four-quarter plan to return Micron Electronics to profitable growth and we are progressing ahead of schedule,'' Kocher said. ''We ended the fiscal year with tangible evidence that our strategy is working.'' biz.yahoo.com