Hi John, RE: "Other sequentially went from 19.4% of revenues to 21.3% of revenues. Other's sequential loss went from 36.9% of other's revenue to 40% of other's revenue. The effect of other's loss of $741 million is about 10 cents per share this quarter, say 40 cents a share annualized. At 20 times earnings, that's eight bucks, or about 20%-25% of Intel's stock price (depending on if you are looking at gross or net %). ...The point I'm trying to make is that "other" is a very, very important part of the value of Intel as a company. An argument could be made that it is the most important, because it is the most significant variable."
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Agreed.
Intel sounds like it's doing "okay" in the network business. Intel's online services do not please me yet, Intel's "other" buyouts don't please me yet (the one a couple of days ago had almost no profit and on way too many employees on little revenue ~1,200 employees, $250k revenue/employee; and the other buyout sounds like it's turning into a Chips & Tech because it appears they incorrectly assumed the Intel channel would generate ST sales on its own accord).
I'd give Intel the following grades:
Manufacturing/Process/Fabs: A+
Mobile: A+
Server: A+ (Xeon, etc.)
Desktop: A-
Network: B
Investments: C+ (This assumes the figures posted on the AMD thread are actually correct - I would have given Investments an A if I hadn't seen the AMD post with figures on these. Grade relative to other VC firms, not measured by today's stock market conditions.)
Comms: C
Online: C
Buyouts: C
Understanding Sales channels of all buyouts (ST, LT): D, C+
Understanding technology of all buyouts: B
I wouldn't consider "C" a passing grade.
"Other" is large (> 20% of revenue). Is the loss of $741MM due to MNA or operational loss?
Regards,
Amy J |
