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Technology Stocks : Intel Corporation (INTC)
INTC 45.51+10.7%Jan 9 9:30 AM EST

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To: Joey Smith who wrote (39409)11/7/1997 3:14:00 PM
From: Barry Grossman  Read Replies (2) of 186894
 
Joey - Re: Inventory correction

What I heard about this inventory correction does not imply what you said about low-end vs high-end chips.

It is saying that because some companies (like Compaq) that were formerly buying and inventorying some microprocessors before they were needed and since they are now ordering for orders just received a la Dell, that this results in a one-time revenue slowdown and accounts for the forecasted slower than normal 4th quarter. Overall margins are probably not affected - just total gross profit and total gross revenue.

Barry
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