Grading Micron's Replacement Leadershttp://www.fool.com/investing/general/2012/10/12/micron-leadership-check-up.aspx Anders Bylund
October 12, 2012
When Micron Technology (Nasdaq: MU ) CEO Steve Appleton crashed his single-engine plane eight months ago, he had served as CEO and chairman since 1994. He grew Micron from a relative minnow in a crowded industry with $1.6 billion in 1994 revenue and transformed it into an industry leader. When Appleton passed away, Micron had more than quintupled its sales in eight years despite several brutal price wars.
Those are some big shoes to fill, but Micron's board took all of two days to appoint then-COO Mark Durcan as new CEO. The chairman's seat was filled by longtime director Robert Switz, former CEO of ADC Telecommunications. If that company doesn't sound familiar, you might recognize parent company TE Connectivity (NYSE: TEL ) , which is an offshoot of the old Tyco conglomerate. Several analyst firms voiced their support for Appleton's replacements by raising target prices on Micron or simply underscoring their existing buy ratings.
Have pudding, let's dig for proof
Not exactly. Most of that plunge hinges on a disappointing second-quarter report, and that period actually closed before the C-suite changes had to be made.
Yep, the computer memory market entered yet another price war at the end of Appleton's reign. At the time, I predicted that Micron would use its rock-solid balance sheet to buy out a failing competitor or two during this crisis, and Micron followed through by winning a bidding war over bankrupt Japanese DRAM competitor Elpida.
That deal is strategically important for two reasons: