Conference Call Notes (sorry if it's a repeat. Also, I am typing as I am listening. So prone to mistakes).
Intel Rep : Any Bryant and Paul O.
-Rev 8.2B (12% over Q3, 8% from Q4 '98).
-1999 : 29,4B, 2.33c. Q4 : 69c
-Unit shipment new records and exceeded expectations.
-GM 61.3% in Q4. 54% in 1998, 59.x% in 1999
-508M - other income (equity etc)
-12.5M shares stock buyback. (903M dollars)in 1999.
-Inventory declined by 9% and is less than Intel would like and is a concern.
-Goal is Intel in internet economy blah blah....
-Forcast :
2000 robust roadmap for 0.18, growth in networking etc.
61% GM (up from 59.7). for 2000.
RD spending 3.8B from 3.1B in 1999 (mainly fron acquisition).
- Cap spending 5B (1.6B extra fro .13m process and equipment - 300 m etc).
-Q1 2000 : rev slightly down (seasonal). is a 14 week quarter. Negligible effect on revenue.
- GM for Q1 ~61.3%
- 500M investment gains in Q1.
Now Paul (andy before).
- We are proud... new record, blah, blah..
- ASP up slight from prior quarter.
- demand high, supply tight.
- Europe surge in Internet.
- Asia surged in notebooks.
- demand very broad.
- Xeon 8-way ramped nicely.
- production 0.18m proceeding very well. fastest ramp ever.
- Chipset grew very well.
- Merced shipped to ISV and OSV ?
- new appliances based on celerons.
- Flash business strong etc.
Q/A :
Q : Cap spending high. epect 2-3 years growth ?
Andy : we are investing all over. mainly : capability for 0.13 for
200mm and 300mm. Also more capacity (shelf space).
Q : timing for 300mm production ?
Andy : 2002 timeframe. .13 and 200m first and then .13 and 300mm later.
not both together.
Q: Dan Niles, our buddy he he! General question on new products for W2000.
Paul : H2 2000, good products for W2K. Nothing insightful here.
Q : when will 0.18 ti 0.13 transition happen!
A : .18 complete by end of 2000. (50% by 6/2000). .18 totalpan 2 to 2.5 years.
Q : some boring question on depreciation. I dont understand the anything here! sorry. GV tucker!
Q : edelstone : supply constraints relief. when ?
Paul : we'll satisfy Q1. we'll be able to take some uupside end of Q1.
Q : why Q1 lower than Q4 GM.
Andy : GM may go up! but we are just cautious. Wireless business will grow by 50%, Flash growing big time but their GM is low and hence overall GM may be not as high. (WOW, sound great!).
Q :Drew Peck , our other buddy! some braindead acquisition question. Andy doesn't understand his question either (:
A : still don't understand what each other is saying. Good breather for me (:
Q : ML : Joe Osha : Q1 : Itanium and Timna plan. Q2 : Amortization
A : Timna systems later this year for peak season. Itanium exciting. coming out later this year. A2 : lost them these! some charge for DSP communication.
Q : Ashok Kumar. timing from 820 to solano chip set.
A : no transition. 820 is high-end move down in time. Solano is for graphics ?
Q : huge unrealised gain for Intel. Any plans for that ?
A : Will keep using it (weird Q and unclear Answer).
- Missed a Q/A here.
Q : 5B expense. breakup for new and traditional business.
A : mostly for traditional business. mostly for 300mm and .13u.
Q : Q1 outolook. demand > supply. nornally 7% downtick. what to expect this year.
A : not quite as much! (good news!). Don't want to commit if it can be evened out.
Q : Acquisition - new headcount ? how has it gone overall.
A : little early to analyze. we spend 6B. getting what we want. turnover rate typical for intel. too early to measure but overall in line with expectation.
Q : williamette and Cu Interconnect info.
Paul : Performance in line like 1Gz. Cu - sorry I missed that.
Q ; OEM accepatnce for chipsets /
A : accepatance good. Volume lower than expectaed, but ramping up nicely. Can't give more info on volume ramp.
Q : customer whining about shortage (GTW!) ? what is the shortage at lower end.
Paul : mix of uP same in Q4 as prior Q.
Q : revenue of chipsets and motherboards. Any comments.
A : we avoid giving breakup. high volume production for everything.
gee, i am slowing down here ...
Q : gateway story, your version!
A : .18 ramp fastest ever. we made commitment in early Q4 and delivered on that commitment. We would love to have more inventory. but we didn't. Wished we had more.(good answer, Customer is always right!)
Q1 : some (??) cartridge question for P3 and celeron. Hows that going ?
A1 : we are on target for .25 and .18
Q2 : Xeon for 256m cache. Any demand for 1MB version.
A2 ; higher freq and large cache to be release later his quarter. Both cache size and freq very important.
Q ; Overall inventory level ? any hot spots for shipent ?
A : lower level than we would like to be. No buffer to shield us from tightness. Goal is to come out of it.
we do not expect slowdown in demand before W2k.
missed Q/A already covered.
Q : 5B expense ? Unit volume relation to $ volume ?
A : expense : mostly for equipment and facility. Cant give breakup. Equipment expense slightly more than facility. 4Q ASp shightly higher, due to mobile and some desktop. (didn't give answer asked)
Q : question on flash capacity (who cares for flash! we want to make billions not some pidley tens of millions here!).
A : Andy sounds bored too. Sorry, unclear to me what he said. More like if we have capacity we will serve flash!
Q : 14 week Q1. Overly conservative to say Q1 will be flat. why, why, why, please tell me ? I want to know!
A : 1 extra week is last week for 1999. but that lots of expenses that week too. So overall not nuch help from that week.
Q : lot of gowth from high-end mP and wireless etc, any idea of breakup of revenue.
A : Nope. we dont give this info!
Last Q/A : (whew!) - Not prepared to share something that Intel doesn't share!
Another last Q : why difference in tax rate ?
A : some answer I don't follow!
Thats all folks!
Overall sounds very good to me.
-Amit. |
