Dave, from the quarterly report.
"The "all other" category includes acquisition-related costs, including
amortization of identified intangibles, in-process research and
development, and write-offs of acquisition-related intangibles, as
well as the revenues and earnings or losses of the New Business Group.
"All other" also includes certain corporate-level operating expenses,
including a portion of profit-dependent bonus and other expenses that
are not allocated to the operating segments. For quarters in 2001,
"all other" includes goodwill amortization whereas goodwill is no
longer amortized beginning in 2002."
As you can see, revenue only comes from the New Business Group, but expenses are collectively the losses from that group, as well as various write-offs, amortization costs, and in-process R&D. Therefore, the losses are not connected to the decline in revenue. For Intel to have reduced costs must have meant cut-backs in the R&D (news regarding the elimination of several Intel business groups last year could have accounted for this), or reductions to the acquisition costs, company spending, etc. In other words, "It's a Good thing."
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