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Technology Stocks : Intel Corporation (INTC)
INTC 34.50+2.6%3:59 PM EST

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To: TTOSBT who wrote (51151)3/24/1998 11:50:00 PM
From: Fred Fahmy  Read Replies (1) of 186894
 
TTOSBT,

First, the earning reported are always net of acquisition charges. In other words, the charges associated with acquisitions are not included in the numbers the analysts care about or what are considered the quarters performance.

Second, the charges for such acquisitions are usually write-offs for "research and development in progress". It has nothing to do with using or not using cash. As far as I can remember, the entire deal was paid for in cash.

As a "LOYAL, LONG LONG LOYAL SHARE HOLDER" I am generally satisfied with managements management of the company. Sometimes short term (short term being 6 months to 1 year) market and industry dynamics are simply beyond the control of management.

You do bring up an interesting point which I'm sure is hindering their ability to pursue further acquisitions....and that's the DOJ. As long as we have a radical, proactive DOJ hell-bent on criminalizing success, future acquisitions by Inetl will be challenged. This shouldn't deter Intel from trying. Again, though, it should be kept in mind that acquisitions are NOT quick fixes and generally take time to produce fruits. I think CHPS will prove to be a solid strategic acquisition although the financial impact will not be immediate.

FF
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