Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 35.94

-5.1%

Nov 13 3:59 PM EST

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To: L. Adam Latham who wrote (110641)	9/21/2000 8:51:59 PM
From: andreas_wonisch	Read Replies (1) of 186894

Adam, Re: your analysis Two points: From (3) above, this decrease in gross profit will be offset by a $100M increase in interest income, so the resulting decrease in earnings, before taxes, would be $143M. The additional increase in interest income is included in the new revenue number. So you are counting it two times. (or to be exact: 1.62 times) Also Intel looked for gross margins in the 63-64% range. To be fair you should assume 63.5% gross margins. The tax rate is estimated at 31.8%, so the decrease in after-tax profit would be 143x.682 = $97.5M. You are forgetting that R&D is also up 100 million dollars from old guidance. Andreas

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