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Technology Stocks : Micron Electronics (MUEI) -- Ignore unavailable to you. Want to Upgrade?

To: SMALL FRY who wrote (3636)	12/21/1998 5:55:00 PM
From: John Graybill	Read Replies (1) \| Respond to of 4074

The $3.2M charge for scrapping Japan direct-sales model (apparently it is a great idea only in the U.S.?) will be next quarter. Compared to net income this quarter of $11.7M, that's quite an earnings hit next time. Margins on PC's look like they are about 22% compared to 15% last quarter. Lower margins are probably going to be a fact of life for a while; I wouldn't guess that the box-makers would feel free to jack up prices after the big Christmas buying season.