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Micron edges out estimates
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December 21, 1998: 5:04 p.m. ET
Computer maker beats Street by a penny, boosted by cuts in inventory
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NEW YORK (CNNfn) - Computer retailer Micron Electronics Inc. reported first-quarter earnings slightly ahead of Wall Street forecasts as the company recorded record unit shipments while cutting its inventory supply.
Micron Electronics (MUEI), a subsidiary of chipmaker Micron Technology Inc. (MU), posted earnings of $11.7 million, or 12 cents a share, on sales of $403.5 million. Analysts had expected the company to report earnings of 11 cents a share.
Micron's earnings beat last-year's results when the company reported a net income of $1.1 million, or a penny a share. Micron's sales, however, slipped from the $558.9 million it reported in the year-ago period.
The company reported 21 percent unit shipment growth from fourth-quarter levels. Micron, which has transformed its operations to a direct-sales model, also said it cut inventory to seven days from 11 days in the fourth quarter.
"Having met or exceeded our objectives in the first phase of our turnaround plan, we shifted our emphasis this quarter to restimulating growth," said Joel Kocher, Micron Electronics chairman and chief executive. "We were solidly positioned to invest in both short and long-term growth strategies while continuing to reduce operating expenses."
Micron shares finished 9/16 higher at 21-3/8 in Monday trading. 
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Micron
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