-- =Analyst Plays Down Persistent Intel Shortfall Rumors >INTC --
NEW YORK (Dow Jones)--Intel Corp. (INTC) shares fell by more that $4 earlier
Tuesday on renewed rumors that the company could pre-announce a sales shortfall
for the first quarter, but at least one prominent analyst thinks the company is
'on track.'
The story floating around the market Tuesday goes something like this: Intel
is putting pressure on its sales force to book as many orders as possible by
Thursday, March 11. If the company doesn't meet targets by then, the company
will pre-announce, market sources said, adding quickly that the story is just a
rumor.
Dan Niles, an analyst at BancBoston Robertson Stephens, said he had heard the
rumor but doesn't believe it.
'March looks like it's pretty much right on track' for Intel, Niles said.
Niles said rumors that Intel would pre-announce have circulated since reports
from Compaq Computer Corp. (CPQ) indicated that PC sales weren't as strong in
February as had been hoped for.
And having Intel rival Advanced Micro Devices Inc. (AMD) preannounce a loss
Monday 'gives more fuel to the fire,' he said.
'People are nervous right now, and I don't blame them,' Niles said. Many PC
companies are having a 'tough' first quarter.
An Intel spokesman didn't immediately return calls for comment.
Earlier, Intel shares fell to a low of 115 1/8 after hitting 120 3/16. More
recently Intel was off 3 9/16, or 3%, at 116 1/64, on Nasdaq volume of 18
million shares, compared with average daily volume of 17.9 million.
Christopher Grimes (201) 938-5253
(END) DOW JONES NEWS 03-09-99
03:03 PM- - 03 03 PM EST 03-09-99
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