Thread,
Some good press on Intel pre-ann and Oracle results:
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Thursday September 10, 11:56 pm Eastern Time
Intel, Oracle Reassure Wall Street
By DAVID E. KALISH
AP Business Writer
NEW YORK (AP) -- Intel Corp. (Nasdaq:INTC - news) and Oracle Corp. [Nasdaq:ORCL - news], two of the most prominent technology companies, disclosed surprisingly strong financial results that could give a much-needed psychological lift to the jittery stock market.
Intel, the world's largest maker of computer microprocessor chips, said late Thursday it would report unexpectedly high third-quarter sales due to strong demand from computer makers in the United States and Europe. The late-day announcement came as Oracle, the largest maker of corporate database software, reported stronger-than-expected profits for the quarter ended last month.
The separate disclosures came too late in the day to staunch a powerful Wall Street selloff. Stocks plunged broadly for a second straight session Thursday, erasing all of Tuesday's gains, as hope for a market recovery on Wall Street quickly faded amid continuing problems in the global economy and Washington.
Intel, based in Santa Clara, Calif., said its third-quarter revenue would rise by 8 to 10 percent from the second quarter's $5.9 billion, exceeding predictions for flat to slightly higher revenues. Intel reports its third-quarter results in October.
The strong demand stemmed from two trends. Computer makers, who use chips as the brains in PCs, bought more Intel microprocessors to replenish stocks depleted in the first half of 1998, when the computer industry aggressively sold out old models to make way for new ones.
In addition, computer makers sold unexpectedly more PCs to consumers in September, Intel spokesman Tom Waldrop said.
While Intel didn't disclose its forecast for profits, it said its gross margin on each chip sold -- what it makes after subtracting certain expenses -- would come in roughly as expected. Multiplying each chip's margin by greater-than-expected sales, the news was a bright spot for Intel after several recent quarters of mixed financial results.
Last quarter, Intel, struggling with cooler demand and hotter competition, reported a 29 percent drop in second-quarter profit and essentially flat revenues. But it predicted a rosier second half of 1998.
For its part, Redwood Shores, Calif.-based Oracle said its profit in its first fiscal quarter -- excluding one-time charges -- rose a better-than-expected 30 percent to $195 million, or 20 cents a diluted share, from $150 million, or 15 cents a share, in the same period a year earlier.
Analysts surveyed by First Call had expected Oracle to report a gain of 16 cents a share in the recent quarter.
Revenues grew 28 percent to $1.7 billion from $1.4 billion as demand surged for Oracle's software, which helps companies store and manage huge databases of information.
Including one-time charges for Oracle's purchase of two companies, Oracle would have earned $8 million in last year's quarter.
Ibexx |
