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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: Gary Kao who wrote (168787)7/27/2002 11:52:15 AM
From: Dan3  Read Replies (3) of 186894
 
Re: Court halts product shipments from Intel's Xircom unit
>>anyone want to venture a guess about how much revenue/profit Intel will lose


This has been something of a dying segment for years. The future revenue loss is either trivial or zero (if they settle on a modest royalty).

But much of the value of the acquisition is probably a part of "goodwill", which Intel is now treating as a non-depreciating asset (as though it were land). Particularly if Intel is found liable for past sales, it will be hard to account for this, possibly large, liability as an asset, so there could be a forced writedown of the current value of the acquisition. This might draw attention to Intel's valuation of some of its other assets, which could either lead to nothing, or it could lead to questions being asked about other asset valuation which could force a restatement of past earnings.
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