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Technology Stocks : Intel Corporation (INTC)

INTC 35.75

+3.6%

3:59 PM EST

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To: andreas_wonisch who wrote (109551)	9/9/2000 4:15:04 PM
From: Barry Grossman	Read Replies (1) of 186894

The only remaining question is how much profit Intel will make on the CPUs with these prices Here is Intel's 3Q00 guidance, which they haven't changed. I suspect Intel knew full well in July what they were facing with the P4 in 4Q00. The initial profit level on the P4 will be an order of magnitude lower than what it will be after it ramps. Intel appears to be quite confident in the idea that systems demand will be there for this product after the public gets a good idea of what it can do. I expect a PR campaign par excellence. BTW, wasn't it only a few years ago that gross margins were only in the 50's? ** The company expects gross margin percentage for the third quarter to be approximately 63 to 64 percent. Based on first half results and current expectations, gross margin percentage for 2000 is now expected to be 63 percent, plus or minus a few points, including the impact of all costs associated with the MTH motherboard replacement program. In the short term, Intel's gross margin percentage varies primarily with revenue levels and product mix as well as changes in unit costs.

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