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Technology Stocks : Intel Corporation (INTC)
INTC 36.82+1.5%Dec 19 9:30 AM EST

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To: Road Walker who wrote (139613)7/18/2001 7:01:56 PM
From: andreas_wonisch  Read Replies (1) of 186894
 
John, Re: I'm too disgusted (and probably too dumb) to figure the EPS without "other".

Well, if you eliminate "other" altogether these losses will disappear and won't hurt the bottom line. So from your data:

IAG profits on 81% of the business - $1.466 billion
"Other" losses on 19% of the business - ($1.249 billion)


Overall profits would have been over $1.25 billion higher. With 6,889 million shares outstanding that's $0.18. That means overall ESP would have more than doubled without "other" (and operating profit would have been almost seven times as high). Of course this calculation only works, if there aren't any additional hidden costs in "other".

Oh, and another point: Isn't flash covered in "other"? With Intel having approx. twice the flash share compared to AMD and AMD getting $316 million in Q2 it's reasonable to assume $500-600 million for Intel in Q2. Flash operated probably at break-even in Q2 (my guess). That means there's approx. $700 million left for "other" (total revenue was $1,207 million) which makes the losses even worse.

Andreas
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