I thought it was your turn. ;-)
• Estimates do not include any merges or acquisitions after 9/6. (From IR guy).
Andy Bryant from now on: (only technical VP on call)
• Each business is on track, as predicted in July (meaning microprocessors, flash and comm). µPs ahead as expected seasonally, flash and comm flat with Q2.
My comment on flash and comm, at least they're not down.
• Opex better (lower), sounds mainly because headcount reductions are ahead of schedule. He reiterated that these were voluntary, but a few more folks leaving. Factory cost reductions going well, got about 80% of what he asked for, hope to continue to get more. He called this a shortfall, I guess that he didn't get the 100% he asked for.
• P4 and 845 chipset ramping very well, demand is solid, even a little tight in fulfilling demand.
Questions
• Niles: Hate to nitpick, but if sales are tracking estimates, why the slightly below call. Andy: sales are just about spot on (sic), but if I had to make a call, make it slightly below. My comment, couple of other questioners brought this point out. I think he's being "Intel conservative."
• Osha: GMs affected by lower factory utilization now, vs. in Q4 when production S/B highest? I didn't get Andy's answer.
• Jon Joseph: should we assume headcount redux are permanent WRT using Opex in calculating results going forward. Andy: yes.
Forget what prompted this comment, but Andy said Japan has softened quite a bit, rest of world OK, on expectations.
Didn't get questioner: Any shortages of speedgrades? No, but reiterated some tightness that's normal with new product ramp.
Didn't get questioner: 20 million P4s this year? Andy hedged, but said meeting goal to make P4 the processor of choice is happening. BTW, Andy said that was Otellini's statement, implying he may not be bought in?
Cost redux in SG&A or R&D? More R&D.
What percentage of Q is in Sept.? (if July and August were ahead, why is overall Q tracking below?). Andy kind of hedged.
This one was funny. Guy from Newberger(?), I'm sure meaning to ask if Intel had a capex plan in place yet for next year, but it came out like "do you have any plan to spend for capital equipment in 2002"? Like, are you going to buy anything? Well, you had to be there. Anyway, Andy said the plan would be shared in January.
My conclusion is that the quarter really is right on the money, too close to call, but Andy is being Intel conservative. He also sounds very confident about P4 prospects. No hedging about it, or any other products, for that matter.
But, I missed some stuff. Anyone else?
Tony |
