Workgroup Strategic Services, Inc.
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This is a summary report from the previous quarter. Updated and full versions are available. Please contact Workgroup Strategic Services for additional information.
Entire contents © 1998 Workgroup Strategic Services, Inc. All rights reserved. Reproduction of this document, data and/or contents, in any form, without prior permission is forbidden. Requests to publish material, or to incorporate material into a computerized database or other electronic forms or for distribution should be directed to Workgroup Strategic Services.
ZEOS and Micron Merger
Micron Computers Business Operations Overview
Appendix A International Channel
Appendix B Micron Computer Facility Growth
Appendix C Micron Technologys Organization Chart
Appendix D Location of PC Facilities
Appendix E Financials
1.0 Executive Summary
On the surface, Micron Computers business model appears to be very similar to that of its key competition, Gateway 2000 and Dell Computer. All three PC vendors sell PCs using a direct model and are notorious for selling PCs that are geared towards the power user. All three advertise heavily in the trade publications and their products tend to garner the majority of these magazines awards. However, there are some very key differences. Micron Computer is majority owned,(64%), by Micron Technology,(MU), a DRAM and SRAM manufacturer, where Dell and Gateway are independent. This ownership by MU provides both advantages and disadvantages. Micron Electronics is much smaller than its key competitors, with last 12 months US sales totaling $1.8 billion,(of which just $1.35 billion is PCs), vs $4.6 and $7 billion for Gateway and Dell respectively. Also, while Dell and Gateway 2000 use its direct model on a worldwide basis, Microns direct approach primarily applies only to the US market, (although US sales account for 92% of Microns revenue, much higher than its competition).
MICRON TECHNOLOGY HISTORY AND OVERVIEW
Micron Computers is a sub-division of Micron Electronics, which is in turn a subsidiary of Micron Technology. Micron Technology was founded in 1978 by twin brothers Joe and Ward Parkinson and Doug Pitman in the basement of a dentist's office. The original business plan was for a semiconductor design consulting firm, but 3 years later the three founders built their own production facility with the financial backing of Allen Noble, a farmer and inventor of irrigation systems, and J.R. Simplot, who started the Simplot Corporation (Simplot Corporation provides McDonalds with at least 50% of its french fries), among other investors. Many of these original investors are still on the Micron Board of Directors today.
Micron Technology went public in 1984. Soon after, Japanese chip makers began dumping chips in the US market, which almost sent Micron Technology into bankruptcy. Micron founders filed an antidumping petition with the International Trade Commission. A trade pact was agreed to before Micron folded. Micron Technology rose from the near brink of bankruptcy to become not only a highly successful vendor of RAM products, but became successful in other areas like construction and display technology.
MICRON TECHNOLOGYS BOARD OF DIRECTORS INSTABILITY
Outsiders indicate that the Micron conglomerate is heavily controlled by the board of directors, which is comprised of Idaho millionaires as well as executives working within Micron. Because of the diverse group that makes up the Board of Directors there are often clashes on how the business operates as well as what information the company will release. Founder, and CEO (at the time), Joe Parkinson believed J.R. Simplot was revealing insider information on Micron Technologies to friends and Wall Street. In February 1993, after an SEC investigation, Simplot had to sign an "indemnification" document stating that he would not disclose to anyone not employed by Micron any proprietary information about the company. In October 1993, Simplot sent a letter to the Wall Street Journal offering internal estimates on Microns future earnings. Micron responded by issuing a press release attempting to discredit Simplots letter.
In September 1994, the clash of the board of directors reached a pinnacle when Parkinson received calls indicating that Simplot was again spreading insider financial information. A board meeting was called, where Parkinson asked Simplot if he was divulging insider information. Simplot said he didn't believe he was. Parkinson made a motion that Simplot not stand for reelection to the company's board. This motion was not seconded and Simplot reminded Parkinson of his controlling interest in over 20% of the Micron stock, which forced Parkinson and compatriots Chief Operating Officer, James Garrett and Reid Langrill, CFO, to all resigned. Steve Appleton stepped in to resume Parkinsons position.
The most recent clash among the board members occurred in early 1996. Simplot and Tyler Lowery, a board member since 1980 and former Vice Chairman and Chief Technical Officer, clashed with Steve Appleton over the companys future business strategy as well as on how to finance Microns future expansion. The clash resulted in the forced resignation of Appleton. Micron issued a statement indicating that Appleton resigned ''for personal reasons,'' but would continue to serve in a consulting capacity for about nine months. In just over a week after his resignation, Appleton returned with the support of the other board members.
MICRON TECHNOLOGYS REORGANIZATION
During its fiscal year 1992, Micron Technology responded to increasing sales and product and team diversity by forming numerous subsidiaries including Micron Display Technology, Micron Custom Manufacturing Services, Micron Construction, Edge Technology, later known as Micron Computer, among various others. By separating Micron Technology into subsidiaries the company attempted to soften the impact cycles in the memory chip industry while promoting growth through what the company coined "entrepreneurial spirit". Also, the objective for the individual subsidiaries was to emphasize a greater accountability for individual teams failures and successes.
Less than two years later, Steve Appleton replaced Joe Parkinson as Chairman, President, and Chief Executive of Micron Technology. In his new role, Appletons objective was to de-emphasize the multi-subsidiary organizational structure that had quickly grown out of control and refocus it around semiconductor manufacturing and silicon technology..
WORKGROUP STRATEGIC SERVICES ANALYSIS
Workgroup Strategic Services believes that Micron Technologys Board of Directors gives the conglomerate a competitive advantage financially. The Board is comprised of Idaho millionaires and billionaires who in the past have helped fund Microns expansion personally. Further, their wealth has helped Micron and its subdivisions to establish credit within baking institutions. The financial backing of the boards is an advantage that few other PC vendors have access to; however, this advantage at these same time could hurt Micron as these wealthy individuals have essentially bought their seats on the Board of Directors without having a true understanding about the computer industry, and their notorious infighting can slow or stop key actions to move the company forward.
In the past clashes between the board members and executives has not affected the success of Micron Technologys business; however Microns image has been affected among stock holders, customers and partners who are questioning who is running the Micron Empire: - the wealthy board members or the executives who are suppose to be in charge? Workgroup Strategic Services believes that in the computer industry, where one misstep can cause as vendor to falter; as in the case of AST Research, there is no room for a volatile Board of Directors. However, we expect that because of Simplots wealth, and close involvement in the Micron conglomerate we expect there to continue to be clashes that could potentially lead to lawsuits against Micron as well as hurt the companys future direction.
3.0 The Zeos and Micron Mergers
On March 13, 1995, ZEOS International filed a registration statement for a proposed merger between ZEOS and Micron Computers and Micron Custom Manufacturing Services, Inc. The merger was officially completed on April 7, 1995 with an estimated value of $405 million. The new organization, of which Micron Technology owns 64%, was renamed Micron Electronics, Inc., encompassing ZEOS, Micron Customer Manufacturing, Inc., Micron Computers, and SpekTek which does component recovery and peripheral memory sales. For accounting purposes, Micron refers to the merger as an acquisition on the part of Micron Electronics.
THE ZEOS BRAND
Micron Electronics discontinued the ZEOS product line at the end of February 1996 due to a "natural migration of customers" to Micron PCs. Since the discontinuation, advertising and production has stopped; however, sales and support services will be available on products ordered before the discontinuation.
From the date of the merger until the ZEOS brand was discontinued, Micron Computers and ZEOS brand PC systems remained separate businesses. The two divisions were positioned to compete against each other until such time that Micron Electronics, Inc. could determine which brand had the potential to be more successful. ZEOS and Micron Computers maintained separate budgets and manufacturing operations. Micron Computer PCs were serviced, sold and supported primarily at the Company's Nampa, Idaho facility while ZEOS brand systems continued to be manufactured out of its 236,000 sq. ft. leased facility in Minneapolis, Minnesota.
In the 11 months that the two products competed side by side, Micron Computer sales largely increased while ZEOS sales remained flat and in recent quarters dropped off. Further, Micron Computers continued to receive a vast array of awards and positive write-ups while ZEOS products were being torn apart with negative press attention. ZEOS became an eyesore to Micron Electronics financials as well as to the equity of the Micron brand name forcing its dissolution
For Micron Computer, the merger/acquisition was supposed to put them in a competitive position against larger PC vendors like Dell and Gateway 2000. ZEOS contributed a competitive portable line and its motherboard design subsidiary PC Tech. PC Tech gave Micron the opportunity to differentiate its products from the likes of Dell and Gateway. Lastly, the combination of ZEOS and Micron was to have increased the overall buying power of PC components and subassemblies making them a more competitive and profitable PC player.
What Micron Computers soon realized was that they were developing a strong Micron brand, and the addition of Zeos had no positive impact on this brand. Additionally, we believe that upon closer examination Micron realized that ZEOS did not offer Micron Computers any competitive or technological advantages. Instead, Micron recognized ZEOS to be a drain on their financial and competitive position, which effectively resulted in the dissolution of the ZEOS business.
Micron Electronics PC division utilizes the direct marketing and sales model also used by Dell and Gateway. The company runs bold, multi-page ads in the major PC magazines, with an 800 number for interested prospects to call. Micron however has not staffed field sales offices the way Dell has to better penetrate the corporate market. Until very recently, the advertisements emphasized Microns high technology and leading edge performance, frequently using photographs of Micron Technologys semiconductor manufacturing plants to graphically illustrate their position as the technology leader in PCs. Workgroup Strategic Services believes the technology leader position was an excellent one, and one that Micron could have continued to claim. For reasons unknown to WGSS, Micron Electronics has chosen to end its high technology images in its ads, instead moving to a friendlier, "fruit" oriented campaign. We believe this is a huge strategic error, as the company has abandoned the position that it owned, and is now in effect, not positioned at all.
Another element of Microns strategy is to offer a full line of products, from Notebooks up through Enterprise servers. The acquisition of NetFRAME in 1997 has filled in the companys high end server product line, and the new Powerdigm Workstations have proven to be top contenders in the emerging Windows NT/Intel workstation field. In extending its line, the company can now compete in every product category with Dell, Gateway and Compaq.
A third key strategy is to load its standard configurations with large amounts of RAM. Micron has consistently had richer memory configurations at a given price than Dell or Gateway, who tend to be more varied in their use of component loading to maintain high average selling prices (ASP). In fact, Microns dependence on RAM may be one reason its ASP declined 15% in Q3 1997 from the same quarter in 1996. (This is an unfortunate occurrence, since Dell has seen its ASP increase over that same period).
MICRON COMPUTER STRENGTHS AND WEAKNESSES
Micron has competitive strengths in the following areas:
- Direct sales distribution model
- Highly regarded products
- An historically sound position
- Wealthy Board of Directors
- Potentially advantaged pricing on memory
DIRECT DISTRIBUTION MODEL: Selling directly to customers provides advantages in a number of ways. By cutting out indirect channel organizations, Micron keeps all the revenue from a sale. It can better gauge changing customer needs, more accurately tailor its marketing and sale messages, and reduce inventory, as well as make product transitions easier and faster. (For a more complete explanation of the advantages of direct sale of PCs please refer to the Dell Vendor Profile).
HIGHLY REGARDED PRODUCTS: Micron has a long history of winning product awards and this trend continues. In the most recent PC Magazine issue, the new Powerdigm Workstation was named editors choice. Micron has always tried to field products with rich configurations, and industry leading performance. Generally the products are merely assembled from industry standard components, then tuned for optimum performance. However, Micron, unlike Gateway, does some original engineering, such as the custom dual PCI bus "Samurai" chipset in the Powerdigm workstation that enabled it to run the Autodesk benchmarks twice as fast as its competitors. (It is not clear whether the Samurai chipset was developed by Micron Technology or Micron Electronics. WGSS suspects it is the product of the former, since the R&D budget for the latter is only $4 million annually, compared to Dells nearly $200 million R&D budget).
HISTORICAL POSITION: A good position is a key advantage for any company. The relative position you occupy compared to your competitors is built in the customers mind over both a great deal of time and marketing communications effort. Where Dell is the Service and Support leader, and Gateway is the value leader, Micron was the technology leader. Their message was consistently reinforced by visual images of Micron clean rooms, and semiconductor expertise. Once a position is established, it is incredibly difficult for a competitor to steal that position. Yet Micron has apparently voluntarily chosen to vacate that position of technology leadership in a misdirected move toward a friendlier, "Gateway style" of advertisement. Whether Micron permanently forsakes its position remains to be seen. If left unprotected for too long, another company will claim the position, and Microns fortunes will be in decline.
WEALTHY BOARD OF DIRECTORS: The Micron board is comprised mostly of retired Idaho farmers with no experience running a large company, especially not a technology company. Yet they have used their wealth effectively to support Micron, nurture its growth, and protect it during financial crises. This paternalistic approach is a key asset, but their inexperience, and infighting are key liabilities for Micron Electronics. Since the resignation then rehiring of Steven Appleton, the board seems to have settled down to the task of properly guiding the Micron organizations. However, like Gateways board, there is a notable lack of world-class executive experience which coupled with the limited background of Microns management team might have serious consequences as the company increasingly competes against worldly organizations and management at Compaq, Dell and HP.
POTENTIALLY ADVANTAGED MEMORY PRICING: Memory is one of the most expensive components of a PC, and Micron Electronics, as a subsidiary of Micron Technology, is in an enviable position of possibly paying less for memory than any of its competitors. WGSS does not know whether Micron Electronics does get favored pricing, but the potential is there. (In fact, an examination of the companys gross profit compared to Dell and Gateway would indicate that Micron Electronics does NOT get favored memory pricing from its parent). In the event Micron Electronics needed advantaged pricing to remain competitive, Micron Technology would have a difficult decision. If it did lower prices to Micron Electronics, it could alienate its other memory customers, as well as lowering the gross margin of the parent company. Probably the only true special treatment Micron Electronics could expect from its parent would be a guaranteed supply during a time of shortage, or early access to the newest and highest capacity product.
The companys weaknesses are:
- Smaller size than key competitors
- Recent abandonment of position and major advertising image change
- Insular management team
- Low gross margins
- Small international sales
- Contentious, and industry inexperienced Board of Directors
- Company is a subsidiary, not the main business
SMALLER SIZE: While small size has not historically been a limiting factor in the PC industry, as the industry grows and matures, size becomes more critical. The scope of investments, the need for broad product coverage, component cost reductions, and more demanding corporate customers all tend to favor the larger companies. Micron Computer is less than 1/3 the size of Gateway and 1/6 the size of Dell. At approx. 1% market share, Micron may be too small to emerge as a Tier 1 player. Its recent growth rate of 24% year to year approximately matches the US PC growth rate, but is greatly outstripped by Dells 67% or Compaqs.
ABANDONMENT OF POSITION: As discussed above, the abandonment of the Technology leader position is a most unfortunate move, and could be the single mistake that prevents Micron from remaining successful. Companies plan entire marketing war campaigns to usurp or topple, (but generally only weaken) a competitors position, and yet Micron has done it to themselves. With its new fruit ads, what does the company stand for in the mind of the customer? Just another clone with a new ad agency trying to do a unique ad. In the empirically oriented customer set of the direct PC buyer, uniqueness counts for naught Position and benefits are everything.
INSULAR MANAGEMENT TEAM: Alone among all the billion dollar PC companies, Micron has an exclusively home grown management team. Joe Daltoso, the CEO and Greg Stevenson, President and COO came up through the ranks at Micron, as did Steven Appleton, the CEO of the parent company, and Dean Klein, Executive VP of Product Development, and Gene Thomas VP of Sales. While there are advantages to promoting key managers from within, in Microns case, this has created an insulated team, with virtually no exposure to the outside industry, and no "fresh blood" to spark new ideas and challenge the historical norm. Further, the company seems to lack a charismatic leader and visionary of Michael Dell or Ted Waitt stature, or an industry recognized, aggressive CEO like Eckhard Pfeiffer or Joel Kocher. This will likely further impede Microns growth potential.
LOW GROSS MARGINS: Good gross margins are the result of two key operating measures; how well you can buy your components, and how effectively you can price your finished product. Microns gross margins (14.6%) are significantly lower than Dells (22%), and Gateways (19%). This puts tremendous pressure on the company to reduce SG&A in order to operate at a profit. While SG&A reductions are desirable, WGSS believes further cuts to compensate for weak gross margins will hurt Microns ability to compete against its larger and financially better managed competitors. Further Microns inventory turns are at 15 per year, which while good, falls far short of Dells 33.
LOW INTERNATIONAL SALES: International sales are an excellent hedge against a downturn in the US market, and can help balance inventory, since the European market typically lags the US market in acceptance of the newest product. Microns international revenue of just 8% of the total is too small to really assist in either of these areas. Further, the costs of expanding overseas are continuously increasing, as Compaq, IBM, HP, Dell and Gateway increase their own efforts. Micron may be in a position where the best action would be to refocus all their efforts on the US market, and forsake international markets entirely.
CONTENTIOUS AND INEXPERIENCED BOARD OF DIRECTORS: The Micron board does not have the variety and industry experience that its large competitors do, and it has demonstrated bizarre behavior in the past. This can only hurt Micron Computers chances to grow and prosper as the market becomes more difficult, and the competition becomes more aggressive.
SUBSIDIARY: Micron Computer is a division of a subsidiary of Micron Technology. It is too removed from the main business of MU, and generates the lowest gross and net margins of any of MUs businesses. WGSS sees two problems with this status. First, Micron Computer is not in a very strong position to negotiate for capital from the parent company. Second, they are not in a position to move quickly in the fast-changing market they compete in. If Dell wants to make a key strategic decision, Michael and or Mort Topfer makes it. WGSS doesnt believe Microns management has that authority.
4.0 MICRON COMPUTERS BUSINESS OPERATIONS OVERVIEW
Micron primarily relies on a direct channel for its sales. The company employs hundreds of sales technicians who receive and process orders. After an order is approved, the order is sent down to manufacturing to be processed.
For desktops, parts and sub-components are pulled from stored inventory after which teams, i.e. "cells", of production workers assemble the system, download the software, power up the systems, and subject them to diagnostics tests to evaluate functionality and quality. The majority of the systems are built from scratch, however, some of the best selling configurations are manufactured and stored in advance of customer orders. To help simplify the manufacturing assembly process, Micron has built many of its PCs around a "screwless" case which is fastened by one thumbscrew. This eliminates time in closing and screwing the system together both for the customer as well as production workers.
Portables, on the other hand, are OEM'd from a non-disclosed third party and are customized onsite. Workgroup Strategic Services believes Micron OEMs its portables from Sanyo. Prior to discontinuation, ZEOS was relying on Sanyo for many of its portable products.
When the assembly process for both desktops and portables is completed, the PC systems undergo a final inspection, after which they are packaged and made available for shipment to customers.
Micron Computer has a complete line of Wintel based products. They have established a reputation for high performance, rich memory configurations, and good quality. By focusing on processor and RAM power, Micron Computers is able to exploit three competitive strengths. 1) Micron Technology is not only their primary memory supplier but is Micron Electronics parent company. This relationship allows Micron Computer to obtain a steady supply of RAM. 2) Micron Technology is a key RAM supplier to Intel. Micron Technology and Micron Computers together are able to leverage this relationship so that Micron Computers obtains an adequate supply of processors, advance notice of new processor technology and good volume discounting. 3) Micron currently does not pay royalties to either IBM or Texas Instruments, while most major PC vendors either have cross-licensing agreements with these two companies or they pay royalties that total between 2-5% of the end-system price.
Micron historically used motherboards from Micronics, which was the fundamental differentiation from vendors like Dell and Gateway 2000 who typically used either their own designs (Dell), or bought from Intel. However, as Intel continues to ramp up its motherboard manufacturing capabilities, and as Micronics will have a difficult time delivering designs that outperform those of Intel in a timely and cost effective manner, Micron will likely become more dependent on Intel motherboards.
Microns desktop systems are called Millenia, and for the last several years they have been at or near the top in every product comparison.. In fact, a Millenia XKU 300 just received PC Magazines Editors choice award, beating similar systems from AST, Dell, Gateway and NEC. The Powerdigm Workstation line also won Editors choice in this comparison against systems from IBM and Dell. Both systems use a 300 MHz Intel Pentium II, with the Powerdigm employing a Micron-designed 64 bit, 66MHz PCI bus.
Micron also has launched a set of desktops specifically for the connected corporate customer, called ClientPro series. The ClientPros feature standard networking and relatively smaller hard drives with no multimedia when compared to the Millenia series.
The Micron Portables are called "Transport" and these have also won their share of Editors Choices, (4 in two years). The Transport XKE is close to a full desktop replacement, with 233 MHz Pentium MMX, 3 Gig hard drive, 13.3" display, and a 20X CD-ROM drive, and was recognized in the October 8, 1997 PC Magazine as Editors Choice once again!
The outstanding performance of Micron systems in these comparisons is one of Microns key marketing advantages and has helped Micron grow its sales without spending as much on advertising as Gateway and Dell
Micron also has a line of servers called Vetix, which will no doubt be strengthened by the recent acquisition of NetFrame. The Vetix servers offer the category standard swappable drives, redundant power supplies and huge expandability. NetFRAMEs unique contributions will be in the area of higher speed I/O through multiple, dedicated channels. Micron supports the Vetix line with on-site service by Digital Equipment Corp. and offers optional packages with 4 hour response and server installation.
The manufacturing process is designed to provide custom-configured products to its customers, and includes assembling components, loading software and performing quality control tests. Micron products are assembled from components purchased through out the world with the exception of the Transports, which are received from the OEM (unkown) in nearly complete form. The order fulfillment process is as follows:
A customer orders a system. The salesperson enters the order, customer detail and customer configuration into the system. It then sent to the manufacturing floor where it is received as a parts "pick list" which is handed off to a production "cell".
Microns manufacturing cells are comprised of 17 production workers who build systems from start to finish, test them and install software. One production cell is considered a complete factory unit. This approach is similar to the manufacturing cell concept utilized by Gateway 2000.
Again, as with Gateway, each cell workers are cross trained, so that the manufacturing cells are not dependent on having all employees present on any given day.
The final stage of the production is a burn in and testing station. Virtually all Micron systems are burned in for 30 minutes and each system is tested for UL (or CSA) standard compliance during this production phase.
A random sampling of 4 - 5% of the PCs are pulled before final packaging for extended diagnostic testing and component reliability auditing. These tests typically include a 24 operational test and extensive sub-component testing - hard disks, memory, installed cards, etc. Of these 4% - 5% of the manufactured systems, 5% of these are relegated to "burn-out" test units where they are kept fully loaded by diagnostic routines for over a two week timeframe. These units are not sent out to customers but are stripped at test end and analyzed for failures.
Prior to packaging, each machine goes through a final quality inspection where physical, cosmetic and software configurations are checked
SERVICE AND SUPPORT
Micron offers the standard 3 year / 1 year onsite warranty; however, they differentiate themselves from the competition by offering the Micron Power Warranty which offers a 5 year warranty on processor and main memory, further indications of Micron Computers close ties with Intel and Micron Technology. The on-site service component is provided by DEC, certainly one of the most technically capable field service forces in the industry. Micron further strives to differentiate itself by focusing on the personal touch approach. They indicate that they spend an average of 10-13 minutes per caller while Workgroup Strategic Services research indicates that its closer to 20 minutes. In addition to being generous with their time, Micron is sometimes willing to help with other companies products that are not covered on the Micron Service and Support programs. Micron has been able to maintain the personal touch approach because of their smaller volumes and low-cost locations. One reason that Microns Service and Support is ranked so highly is because Micron Support Executives are very aware of the service and support activities as demonstrated by the following e-mail message (names were deleted for privacy)
Currently, Micron Computers sells its PCs through a direct channel. Therefore its not surprising that its customer base is comprised primarily of computer literate home users and small- to medium-sized businesses. While the company currently does not sell through US resellers, they do sell through large volume vendors like Wyle Computers as well as through government procurement contracts.
In October of 1995, Micron Electronics extended their relationship with Irvine, Calif. based Wyle Electronics from just RAM product sales to include Microns PC systems for the OEM and VAR markets. Wyle is authorized to sell Micron PCs through all of its locations. Further, this agreement allows Wyle to customize systems for customers.
DISTRIBUTORS AND RESELLERS
Micron Computers channel strategy varies in the Rest of World markets. Micron Computers supports a direct channel approach in the overseas markets; however, Micron further supports an international list of distributors and resellers. See Appendix A. Microns international sales, service and manufacturing are all supported out of the Nampa facility.
Micron International Sales Direct
208-893-8970 voice direct dial (Mon. - Fri. only)
208-893-8993 FAX direct dial (Mon. - Fri. only)
0031-12-5684 Japan FAX toll free (Mon. - Fri. only)
1-800-708-1758 Canada toll free (Mon. - Fri. only)
1-800-708-1756 Puerto Rico toll free (Mon. - Fri. only)
95-800-708-1755 Mexico toll free (Mon. - Fri. only)
Rest of World Resellers and Distributors
Austria - Golem Integrated Microelectronic Solutions
43 1 209 7044
Bahrain - Mentech Computer Services
973 731 717
Belgium - Cleotens Distribution
32 15 208520
Bulgaria - Infoguard Ltd.
35 92 819 060
Cypress - C.A. Strategic Marketing
357 2 362242
Denmark - Star Confult
45 66 132 343
France - P.C. Way
33 88 182167
Gibraltar - Newton Systems Ltd.
Israel - Computer Superstore M.S.Z. Ltd.
972 3 579 8350
Jordan - CEB
962 6 678 115
Kuwait - Safat
964 481 7877
Lebanon - Al Zakira Ras
961 1 602 475
Macedonia - Almako Trading
389 91 116 399
Portugal - Micrograf
3512 937 6850
Saudi Arabia - InterCAD Systems
966 3 833 4717
Saudi Arabia - Taysco
966 2 691 7265
Saudi Arabia - Electronic Concepts
966 1 464 0595
Slovania - Actual IT
386 66 272 420
Switzerland - Techno-Link
41 22 782 9121
UK - Panrix Electronics
44 1132 44 49 58
Maldese - MicroSystems PVT Ltd
960 316 294
Russia - Capital and Commerce Intl
7 095 332 4700
Panama - One Depanamasa
507 63 4607
Peru - Exportadora Indestiral
51 1467 0729
Japan - America ADO Inc.
813 3257 2690
Japan - Mitsui Basan Digital
813 3219 1401
China - Tsinghua Uni Splendour
861 254 3755
Costa Rica - Axioama Intl/ Integracom (two companies, same phone/location)
506 253 3248
Ecuador - Interface CA
593 247 266
Hong Kong - Houston Crest
852 2 829 7454
Hong Kong - Vanda Ltd.
852 2334 8702
Indonesia - Forexendo Computers
6221 601 0293
Indonesia - Pt. Bhinneka Mentari Dimensi
6221 601 0843
MICRON COMPUTERS FACILITY GROWTH
Fiscal Year 1992 - Edge Technology was based in Boise, Idaho out of Micron Technologys main offices.
Fiscal Year 1993 - an 18,000 sq. ft. building was built on leased land this housed what is now referred to as Micron Computers.
Fiscal Year 1993 - a 110,000 sq. ft. building was added to the original Nampa building
Fiscal Year 1994 - Micron maintain these facilities
Fiscal Year 1995 - Micron merges/acquires ZEOs increasing dedicated PC space up to 234,000 sq. ft.
Q1 Fiscal Year 1996 - Micron adds an additional 130,000 sq. ft. facility in Nampa.
The costs is estimated at $7 million. The increase in space is dedicated to management functions, sales, customer service, technical support and additional PC assembly lines.
Q2 Fiscal Year 1996 - ZEOS brand is discontinued. Manufacturing facilities emptied while sales and service and support facilities are maintained.
MICRON TECHNOLOGYS ORGANIZATION CHART
LOCATIONS OF PC FACILITIES
Micron Electronics, Inc.
900 East Karcher Road
Nampa, Idaho 83687-3045
Micron Factory Outlets
Micron Retail Store
9999 West Emerald
M-F 9am - 7pm
Sat - 10am - 10pm
Sales, Training Center, Service Center, Technical Assistance, Customer Service
Micron Retail Store
Salt Lake City, Utah
Micron Electronics, Inc.
1301 Industrial boulevard
Minneapolis, Minnesota 55413
ZEOS Retail Stores
Golden Valley, Minnesota
6750 Wisetta Blvd.
Mon. - Fri. 9-8pm
Arden Hills, Minnesota
3775 North Lexington
Mon. - Fri. 9-8pm
APPENDIX E - FINANCIALS