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

To: JF2155 who wrote (40303)	10/23/1998 3:34:00 PM
From: DJBEINO	Respond to of 53903

Texas Instruments Expects $130 Mln 4th-Qtr Payment to Micron Bloomberg News October 23, 1998, 9:18 a.m. PT Dallas, Oct. 23 (Bloomberg) -- Texas Instruments Inc. said it expects to pay Micron Technology Inc. $130 million in cash on top of other financing to cover lower inventory at its memory- chip business, which it sold to Micron earlier this month. The division's inventory was lower than Texas Instruments expected when it sold the unit to Micron for $881 million. The memory business's third-quarter sales exceeded forecasts and contributed to Texas Instruments' better-than-expected third- quarter profit. Under the sale, Texas Instruments received 28.9 million shares of Boise, Idaho-based Micron as well as warrants for another 12 million shares. In return, Texas Instruments gave Micron $550 million in financing to help upgrade the memory division's plants to Micron's technology standards. ''Because we worked off more inventory, we owed them more money,'' said Kim Quirk, a spokesman for Dallas-based Texas Instruments. The company said it will pay Micron by year's end. The money-losing memory-chip business crimped Texas Instruments' earnings for most of the year. The company's third- quarter profit fell 31 percent to $164 million, or 41 cents a share. That was better than the 28 cents most analysts had expected. Texas Instruments sold the memory-chip business to focus on more-profitable digital signal processors, the specialized chips used in everything from microwave ovens to cellular telephones.