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Technology Stocks : Intel Corporation (INTC)
INTC 35.75+3.6%Nov 24 3:59 PM EST

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To: TTOSBT who wrote (60162)7/14/1998 5:39:00 PM
From: D.J.Smyth  Read Replies (2) of 186894
 
TTOSBT, Intel shows $278 million greater cost this quarter for "cost of goods sold" than last quarter which had slightly higher revenues. Probable scenario due to (a) buying materials in prepartion for the 2nd half of the year and the Christmas season?

Intel shows $28 million increased research and development from last quarter.

They show $76 million increased marketing, general and admin. costs.

They show $60 million less in interest from investments this quarter.

Adding these figures we have a $442 million difference from last quarter which translates into $.25 a share assuming dilution.

It is odd that their cost of goods would increase by such a significant margin given their purchasing in different Asian markets where the cost of goods has decreased substantially (Compaq reported today that it's cost of producing systems has decreased 42% from the same time last year).

any thoughts?

the increase in the cost of goods sold this quarter is $.16 in earnings. odd.

inventories appear to be in line from last quarter, so where is the additional cost coming from?
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