Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 50.79

+5.2%

11:23 AM EST

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To: exhon2004 who wrote (4347)	10/17/1996 1:26:00 PM
From: Joel R. Phillips	of 186894

Greg, I looked at the Q3 results as you suggested. I think what we are seeing here is a quarterly aberration. If you look at the previous six months, you will see net cap spending/net income about 40%, not 10% as in Q3. Actually it has been my experience that these numbers bounce around quite a bit from year to year, so I expect quarterly comparisons to be pretty awash in noise. On recycling fab equip, if you look back you will see several of these posts were from me. Now, it is worth keeping in mind that relative to most other semi manufacturers, Intel does a superb job of keeping capital spending in line. But is is the nature of this business to be very capital-intensive, and Intel cannot completely avoid that. So while it is possible that a shift to lower capital spending requirements may be occurring, given the nature of semi fabs and of tax law with regard to depreciation and such, I find it very difficult to believe Intel can maintain the type of net cap spending/earnings ratio we saw in Q3. --joel

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