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Technology Stocks : Intel Corporation (INTC)
INTC 41.41+2.2%3:59 PM EST

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To: Thomas M. who wrote (36178)10/16/1997 1:08:00 AM
From: Fred Fahmy   of 186894
 
Tom,

Say what? Intel's guidance for Q4 margins is flat to slightly up from Q3's 58% level. The 50% number (plus or minus a few percent) is their historical margins. Intel has consistantly said that they see an eventual return to these levels due to increasing/expanding new business which will likely have less margins than CPU's. Intel's strategy has always been to grow margin dollars not margin percents.

For example, would you rather have 60% margins on a $50 billion dollar business or would you rather have 50% margins on a $70 billion dollar business?

FF
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