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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: grok who wrote (83241)	6/10/1999 9:26:00 PM
From: L. Adam Latham	Read Replies (1) \| Respond to of 186894

KZNerd and all: The following paragraph appeared in NSM's quarterly report today: In addition to the restructure charge, the Company also incurred additional one-time charges of $55.1 million related to the exit of the PC processor business. The charges included $9.0 million against sales for product returns, $43.6 million included in cost of sales for the write down of Cyrix processor inventory and $2.5 million included in SG&A expenses for accounts receivable allowances. I have a question for any accounting experts out there: does the $43.6 million charge against inventory imply that they are giving up on selling these CPUs? It had been reported that NSM's exit from the CPU biz may cause a glut of super-low priced CPUs for a month or two. But the fact that they're taking a large charge for the inventory almost makes it seem like they're just going to destroy all the CPUs. Anyone know how to interpret the write down? Thanks, Adam