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Technology Stocks : Intel Corporation (INTC)
INTC 40.15-0.5%2:08 PM EST

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To: fut_trade who wrote (144807)10/6/2001 11:42:40 AM
From: Tushar Patel  Read Replies (2) of 186894
 
Actually not. Intel is still making money in spite of 20K more employees than it needs. It is still making money in spite of losing billions in "other" businesses. Intel is still made money even when competition was more or less on par in high end processors.

All of these can change. If business does not pick up, Intel can lay off excess employees. 20K employees means at least 2B. If "other" businesses don't start producing money soon (in another year or so), Intel can shut them down saving a couple more billion per year. In other words, Intel can easily earn 4-5B a year at current volumes & revenues if it decides that the stall is a permanent slowdown and it needs to resize its business.

If Intel succeeds in gaining significant market share and/or it succeeds in Itanium space and/or the market actually starts to grow again and/or the "other" businesses start being profitable, Intel will earn billions more.
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