Advanced Micro Devices - Moderated (AMD) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 200.46

-17.2%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Goutam who wrote (21324)	12/3/2000 11:29:26 AM
From: niceguy767	Read Replies (1) of 275872

Goutama: Had a chance to review INTC's Q3 release and noted the following: 1. INTC repurchased 14.3 million INTC shares during Q2 at a cost of $1.0 billion ($70 per share)...Looks like a cool $500 million loss (now $35 per share)... 2. INTC projected a decline in gross margins by 1% from 64% to 63%...Probably translates into a $500 million net income reduction...A 1% GM decline might be an underestimate given the duouble whammy of what seems to be softening PC demand and hardening Athy competition... 3. INTC projected an increase of 7% in R& D or about $150 million... 4. INTC projected investment gains of $950 million in Q4...(Given the erosion in the INTC investment portfolio that has since taken place, they may be hard pressed to find $950 million). 5. INTC is projecting $9.0 billion in Q4 revenue up from $8.7 billion in Q3... Conclusion: 1. The projected Q4 revenue increase derives primarily from sale of investments, which I believe in Q3 was approximately $750 million... 2. Even in the unlikely event that $9 billion in Q4 revenues is achieved, given the negative incremental earnings effect of items 1 (not really sure if (1) impacts earnings) to (4) above, INTC is unlikely to realize the rather heady (in retrospect) Q3 eps of $0.41...Might even miss bigtime depending on the size of GM erosion in (2) above...

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next