TCI-They tell me all is cool in PC land --->Look here.
I guess a +58% YOY growth in earnings to some is chump change,late introduction of PIII,Xeon (for Workstations and Servers) and high end Celerons chips could be the reason for a minor shortfall in revenue.
Intel profits top Street forecasts
REUTERS
SANTA CLARA, Calif., April 13 — Intel Corp., the world's largest computer chip maker, Tuesday reported first-quarter earnings slightly above Wall Street's expectations, easing concerns about the possibility of a major slowdown in PC sales.
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MANY ON THE Street had been concerned that Intel would not meet expectations after PC maker Compaq Computer Corp. said late Friday that its earnings would come in well below expectations.
Santa Clara, Calif.-based Intel said its first quarter net income rose to $2.0 billion, or 57 cents a share, from $1.3 billion, or 36 cents, a year earlier.
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“There are no surprises here,” said Hans Mosesmann, an analyst with Prudential Securities. “The important thing is there is no fundamental problem with end demand. They are guiding for seasonal demand. ... Guidance of flat-to-slightly-down [revenues] — you would expect them to say that. If they had said something else it would be worrisome.”
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“As we expected, revenue declined from the prior quarter reflecting a seasonally slower selling period,” Intel Chief Executive Craig Barrett said in a statement. “We are seeing positive results from the launch of new products across all segments,” he said.
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Intel's first-quarter gross profit margins were also a bit better than expected. Intel reported gross margins of 59 percent of revenues in the quarter, one point better in the fourth quarter of 1998. The improvement mainly reflected cost-cutting.
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Intel's gross margin in the second quarter is expected to be little changed from 59 percent in the first quarter. Expenses are expected to be about 6 percent to 10 percent higher than first-quarter expenses of $1.6 billion.
Intel's first-quarter earnings came after Compaq Computer Corp., the world's largest personal computer maker, raised concerns on Friday with a warning that its first-quarter earnings would come in at about half of what Wall Street had been expected. It cited weaker worldwide PC demand and tough price competition.
“The No. 1 guy is having problems and people think there must be something wrong with the end market,” Mosesmann said. “It looks like perhaps not...I think things are going well at Intel.”
(Courtesy:Upside-Excerpts only) |
