Vendor Profile

Micron Computer

Prepared By:

Workgroup Strategic Services, Inc.

75 Congress Street

Portsmouth, N.H. USA 03801

603 - 431 - 4409

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.


Executive Summary

Introduction

ZEOS and Micron Merger

Micron Computer’s Business Operations Overview

Appendix A International Channel

Appendix B Micron Computer Facility Growth

Appendix C Micron Technology’s Organization Chart

Appendix D Location of PC Facilities

Appendix E Financials


 

1.0 Executive Summary

On the surface, Micron Computer’s 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 magazine’s 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, Micron’s direct approach primarily applies only to the US market, (although US sales account for 92% of Micron’s revenue, much higher than its competition).

 

2.0 Introduction

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 McDonald’s 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 TECHNOLOGY’S 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 Micron’s future earnings. Micron responded by issuing a press release attempting to discredit Simplot’s 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 Parkinson’s 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 company’s future business strategy as well as on how to finance Micron’s 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 TECHNOLOGY’S 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, Appleton’s 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 Technology’s 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 Micron’s 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 Technology’s business; however Micron’s 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 Simplot’s 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 company’s 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.

COMPANY STRATEGY

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 Micron’s high technology and leading edge performance, frequently using photographs of Micron Technology’s 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 Micron’s 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 company’s 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, Micron’s 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 editor’s 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 Dell’s 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 customer’s 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 Micron’s 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 Gateway’s board, there is a notable lack of world-class executive experience which coupled with the limited background of Micron’s 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 company’s 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 company’s 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 Dell’s 67% or Compaq’s.

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 Micron’s 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 Micron’s 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. Micron’s gross margins (14.6%) are significantly lower than Dell’s (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 Micron’s ability to compete against its larger and financially better managed competitors. Further Micron’s inventory turns are at 15 per year, which while good, falls far short of Dell’s 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. Micron’s 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 Computer’s 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 MU’s 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 doesn’t believe Micron’s management has that authority.

 

4.0 MICRON COMPUTER’S 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 OEM’s 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.

PRODUCTS

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.

Micron’s 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 Magazine’s Editor’s 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 Editor’s 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 Editor’s Choice once again!

The outstanding performance of Micron systems in these comparisons is one of Micron’s 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. NetFRAME’s 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.

MANUFACTURING

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".

Micron’s 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 Computer’s 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 Micron’s 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)

CHANNELS

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 Micron’s 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 Computer’s 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. Micron’s international sales, service and manufacturing are all supported out of the Nampa facility.

 

 

APPENDIX A

International Channel

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

Vienna

43 1 209 7044

Bahrain - Mentech Computer Services

Manama

973 731 717

Belgium - Cleotens Distribution

Mechelen

32 15 208520

Bulgaria - Infoguard Ltd.

Sulfia

35 92 819 060

Cypress - C.A. Strategic Marketing

Nicosia

357 2 362242

Denmark - Star Confult

Odense

45 66 132 343

France - P.C. Way

Vendenheim

33 88 182167

Gibraltar - Newton Systems Ltd.

Gibraltar

350 41312

Israel - Computer Superstore M.S.Z. Ltd.

Bnei Brak

972 3 579 8350

Jordan - CEB

Amman

962 6 678 115

Kuwait - Safat

Kuwait

964 481 7877

Lebanon - Al Zakira Ras

Berut

961 1 602 475

Macedonia - Almako Trading

Skopje

389 91 116 399

Portugal - Micrograf

Mato Sinhos

3512 937 6850

Saudi Arabia - InterCAD Systems

Al Qalsar

966 3 833 4717

Saudi Arabia - Taysco

Jeddah

966 2 691 7265

Saudi Arabia - Electronic Concepts

Riyadh

966 1 464 0595

Slovania - Actual IT

Koper

386 66 272 420

Switzerland - Techno-Link

Meyrin

41 22 782 9121

UK - Panrix Electronics

Leids

44 1132 44 49 58

Maldese - MicroSystems PVT Ltd

Mali

960 316 294

Russia - Capital and Commerce Int’l

Moscow

7 095 332 4700

Panama - One Depanamasa

Panama City

507 63 4607

Peru - Exportadora Indestiral

Lima

51 1467 0729

Japan - America ADO Inc.

Tokyo

813 3257 2690

Japan - Mitsui Basan Digital

813 3219 1401

China - Tsinghua Uni Splendour

Beijing

861 254 3755

Costa Rica - Axioama Int’l/ Integracom (two companies, same phone/location)

San Jose

506 253 3248

Ecuador - Interface CA

Kito

593 247 266

Hong Kong - Houston Crest

Kowloon

852 2 829 7454

Hong Kong - Vanda Ltd.

Hong Kong

852 2334 8702

Indonesia - Forexendo Computers

Jacarta

6221 601 0293

Indonesia - Pt. Bhinneka Mentari Dimensi

Jacarta

6221 601 0843

APPENDIX B

MICRON COMPUTERS FACILITY GROWTH

Fiscal Year 1992 - Edge Technology was based in Boise, Idaho out of Micron Technology’s 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.

 

APPENDIX C

MICRON TECHNOLOGY’S ORGANIZATION CHART

 

APPENDIX D

LOCATIONS OF PC FACILITIES

Micron Electronics, Inc.

(Micron Computers)

900 East Karcher Road

Nampa, Idaho 83687-3045

Micron Factory Outlets

Micron Retail Store

9999 West Emerald

Bosie, Idaho

1-208-373-7600

M-F 9am - 7pm

Sat - 10am - 10pm

Sales, Training Center, Service Center, Technical Assistance, Customer Service

Micron Retail Store

7200 South

Salt Lake City, Utah

1-801-256-4200

Micron Electronics, Inc.

(ZEOS)

1301 Industrial boulevard

Minneapolis, Minnesota 55413

1-612-623-9614

ZEOS Retail Stores

Golden Valley, Minnesota

1-612-541-1900

6750 Wisetta Blvd.

Mon. - Fri. 9-8pm

Sat. 9am-5pm

Sun. 12pm-5pm

Arden Hills, Minnesota

3775 North Lexington

1-612-486-1900

Mon. - Fri. 9-8pm

Sat. 9am-5pm

Sun. 12pm-5pm

APPENDIX E - FINANCIALS