Edamo, here's a good summary:
Intel Profits Rise 57 Percent
By DAVID E. KALISH
.c The Associated Press
NEW YORK (AP) -- First-quarter profits at Intel Corp., the world's largest maker of personal computer chips, rose 57 percent, beating Wall Street forecasts amid cost-cutting and an 18 percent rise in revenue.
However, Intel said Tuesday it expected second-quarter revenue to stay the same or fall slightly from its first-quarter revenue of $7.1 billion, citing ''seasonal factors'' in the microprocessor business. That disappointed some analysts who expected a slight increase.
In after-hours trading, Intel dropped to $57.75 a share after the results were released at the close of financial markets Tuesday. That was on top of Intel's stock drop of 75 cents a share to $60.50 in regular trading on the Nasdaq Stock Market.
The results nevertheless helped allay concerns that a predicted financial shortfall this quarter at Compaq Computer Corp., Intel's largest chip customer, would be reflected elsewhere in the technology business. By beating expectations, Intel -- a bellwether for the rest of the PC industry -- apparently suggested Compaq's woes were confined to its own business.
The results ''suggest to me the rest of the industry is fine,'' said David Wu, an analyst with ABN Amro in San Francisco. ''The news here really is there is no news.''
Intel, based in Santa Clara, Calif., said it earned $2.0 billion, or 57 cents a share, in the three months ended March 27. That was up from a profit of $1.27 billion, or 36 cents a share, in the year-ago quarter.
Revenue rose to $7.1 billion from $6.0 billion.
Intel's per-share profit handily beat the expectations of analysts surveyed by First Call, who had been projecting 55 cents a share after accounting for a 2-for-1 stock split this month.
Intel also was helped by higher interest income and a lower tax rate.
Intel said first-quarter revenues were down 7 percent from the final quarter of 1998 due to a seasonal slowdown in PC sales. But year over year, the company was helped by strong demand for its range of new microprocessors, which supply the primary brainpower for computers.
Intel introduced its latest Pentium chips for personal computers and more powerful business machines this quarter. It also launched a faster Celeron chip for the fast-growing category of PCs costing less than $1,000.
AP-NY-04-13-99 1747EDT
Copyright 1999 The Associated Press |
