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Technology Stocks : Intel Corporation (INTC)
INTC 35.53-1.1%Nov 14 9:30 AM EST

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To: JRI who wrote (78776)4/13/1999 4:46:00 PM
From: Tenchusatsu  Read Replies (1) of 186894
 
<Did I understand right that 59% was the gross margin, and it is expected to be flat for the second quarter?? Isn't that on the high-end of the expected range, pointed to health in the PIII market (high-end) sales...(and not an overreliance on Celeron to make the number(s)>

The weird thing is that Intel expects gross margin for the whole year of 1999 to be 57%. That means if 59% is going to be the margin for the first two quarters, we can expect the margin to go down to 55% or 56% in the next two quarters.

I guess Intel is getting ready for lower margin times. It won't matter, though, if Intel can make up for it with even higher volume shipments.

Tenchusatsu
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