From transcript of today's presentation-Clear as mud
John Pitzer - Credit Suisse
Hard to say if the transcript is bad, commas out of place etc or if this guy just can't spit out the numbers in a short, concise way.
Maybe someone can decipher what he said, what he meant to say or what he ought to have said.
John Pitzer - Credit Suiss
You guys have done a good job on the consolidation front Elpida was in your results last quarter for a single month. Relative to some of the targets you gave during the closing of the acquisition that one month fell a little short. Can you help us understand where you are relative to those initial targets?
Kipp Bedard - VP, IR
Yes, you bet, in fact, we apologize to everybody there were some confusion around that. We did not do a very good job of presenting it. Basically what we did is we had a one month snapshot that was audited from Elpida that came in just below on the cash gross margin run rates that we gave you. In the August timeframe we showed you at our New York Analyst Meeting that Elpida was running in the 47% to 52% cash gross margins when we gave you the data for that one month of August what you saw calculated to about 44%. But when we finally got the three month audited for the June, July, August time frame they were running exactly where we have given the guidance to be in it and we just didn't do a good job on the conference call making that clear. I think we had one statement in there that hey they're running at that run rate, but it never really got communicated very well. So my apologies for that but they are running there and so and even for them publicly we have on our 10-Qs and Ks that's a deflating, if you will, devaluing yen is beneficial to them. And of course we made that comment when the yen was 97 to the dollar; I think it's running 102, 103 today. So they're going to be a pretty integral part of the earnings that are coming up here.
I thought it was pretty clear! Kipp Bedard said that last August, guidance was given for Elpida for margins of 47% to 52% for the 4th quarter (June / July / August). When the report came out, only the last month of Elpida the quarter (August) was included in the report and the margins were calculated at 44%. Recall there was a bit of a sell-off when the report came out. However, Kipp said now that MU has the audited Elpida report for the 4Q timeframe, the margin numbers "were running exactly where we have given the guidance", presumably the 47%-52% numbers. Thus, looking forward Elpida is "going to be a pretty integral part of the earnings that are coming up here".