Hot Stocks To Watch: ADACE MUEI NSM WHR
Company Company News
Adac Labs Restated 1996, 1997 and first
Mon close 18 3/8 three quarters of 1998, citing
UP 1/2, or 2.8% adjustments to the timing of
292,600 shares certain unit revenues (full
(ADACE) story under ADACE).
- -
Micron Electronics Sees 2Q sales and income below
Mon close 14 7/16 1Q levels. 2Q sales are down about
UP 1/16, or 0.4% 6%-9% from 1Q sales (full story
1.1 million shares under MUEI).
(MUEI)
- -
National Semi Launched an Internet sales site
Mon close 10 3/16 (full story under NSM).
DN 5/16, or 3.0%
883,800 shares
(NSM)
- -
Whirlpool Corp. Sees double-digit increases in
Mon close 41 the 1Q and year (full story
dn 2 1/2, or 5.7% under WHR).
458,900 shares
(WHR)
(END) DOW JONES NEWS 03-02-99
07:24 AM
Micron Electronics Issues Cautionary Comments on Second Quarter
NAMPA, Idaho--(BUSINESS WIRE)--March 1, 1999--Micron Electronics, Inc.
(www.micronpc.com) (Nasdaq:MUEI), a leading direct vendor of personal computers, today
announced that its net sales and net income levels for the second fiscal quarter of 1999
ending March 4, 1999 will fall below levels experienced in the first fiscal quarter of
1999 because of slower than expected personal computer sales.
The Company expects that results for the second fiscal quarter of 1999 will be
unfavorably impacted by factors including: purchase deferrals resulting from the early
promotion and late-quarter timing of Intel's Pentium III processor introduction;
anticipated seasonal slowdown in Micron's strategic government segment; and continued
industry pricing pressure in its consumer business.
The following statements are based on current management expectations. These
statements are forward looking, and actual results may differ materially.
The Company anticipates net sales for the second fiscal quarter to be down six to nine
percent from net sales of $403.5 million in the first fiscal quarter of 1999.
Consolidated gross margin for the second fiscal quarter is expected to be
approximately the same as the 17.1% consolidated gross margin that the Company
experienced in the first fiscal quarter. However, PC gross margin in the second fiscal
quarter is expected to be down approximately one percentage point from the 15% PC gross
margin achieved in the first fiscal quarter of 1999. PC gross margin was impacted by
increased pricing pressure in the consumer segment and the business mix impact from
relatively higher seasonal consumer sales. Gross margin for the SpecTek semiconductor
memory products operation is expected to be similar to the first fiscal quarter.
In line with Micron's strategic business transformation plan, the Company is
experiencing growth in its mid-market relationship PC business with second fiscal quarter
sales expected to increase by more than 20% compared to its first fiscal quarter. As its
mid-market business strategy continues to build momentum, Micron expects its relative
business mix to shift progressively from consumer sales to commercial and government
sales. In the coming quarter, the Company also expects to benefit from its newly launched
Pentium III desktop and server product lines and a stronger season for government
purchases.
The Company's operating expenses for the second fiscal quarter are expected to
increase sequentially by approximately two to three million dollars primarily due to the
Company's field sales force expansion and investment in supplemental advertising dollars
to counteract the anticipated impact from the early Pentium III announcement. As
previously announced in Micron's earnings report for the first fiscal quarter of 1999,
the Company is also consolidating its operation in Japan to its Nampa, Idaho facility in
order to dedicate resources to its mid-market business strategy in North America. The
costs associated with exiting the Japanese operation will result in a non-recurring
charge of approximately four million dollars in the second fiscal quarter of 1999.
Micron continues to focus on execution of its direct business model and improving its
asset management. The Company expects to maintain its industry leading cash conversion
cycle and to maintain a leading position in days sales of inventory.
The Company is scheduled to announce earnings results for the second fiscal quarter on
Monday, March 22nd, 1999.
Special Note
A brief conference call for the investment community will be held at 3:30pm Mountain
Standard Time today. Participants can access the call by dialing 630/395-0074 and the
pass code is mid market. All interested persons are invited to listen to the call.
Micron Electronics, Inc. (Nasdaq:MUEI), a recognized industry leader and direct vendor
known for its award-winning products and services, develops, manufactures and markets
high-performance, competitively priced computing solutions to consumers, small
businesses, commercial and public sector buyers. Its superior customer service and
toll-free technical support is available to customer's 24 hours a day, seven days a week.
Micron offers value and convenience through direct sales via the Internet
(www.micronpc.com), by phone (800/249-1179) or by fax (208/893-7240) SpecTek, a division
of Micron Electronics, Inc., processes and markets various grades of DRAM products under
the SpecTek(R) brand name. Micron Electronics, Inc. is majority owned by Micron
Technology, Inc.
Statements contained in this press release that are not purely historical are
forward-looking statements and are being provided in reliance upon the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking
statements are made as of the date hereof and are based on current management
expectations and information available to the Company as of such date. The Company
assumes no obligation to update any forward-looking statement. It is important to note
that actual results could differ materially from historical results or those contemplated
in the forward-looking statements. Factors that could cause actual results to differ
materially include various risks and uncertainties such as market responses to pricing
actions and promotional programs, competitive influences and pricing pressure, changes in
customer markets, varying costs of operations, overall product demand and shifts in
demand, inventory risks due to shifts in market demand, changes in technology and other
risks disclosed in the Company's filings with the Securities and Exchange Commission,
including the Form 10K for the fiscal year ended September 3, 1998.
CONTACT: Micron Electronics, Inc.
Steven H. Laney or Denise Smith
Investor Relations Public Relations
Phone: 208/898-3900 Phone: 208/893-4425
Web site: www.micronpc.com
Fax-on-demand: 800/926-0993
16:57 EST MARCH 1, 1999 |
