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

To: Paul Engel who wrote (83906)	6/19/1999 1:50:00 AM
From: Scumbria	Read Replies (2) \| Respond to of 186894

Paul, At room temperature, the Coppermine should run at 700 MHz or higher. Room temperature numbers are meaningless for production test, which is done at more than 170 degrees farenheit. Scumbria

To: Paul Engel who wrote (83906)	6/19/1999 5:58:00 AM
From: puborectalis	Read Replies (2) \| Respond to of 186894

Ashok Kumar and Drew Peck are both on Squawk box monday after 7am. What do you think they'll be discussing? Intel? Cisco? Lucent? microsoft? DEll? These analysts usually do their homework. June 19, 1999 Intel Announces a Delay, and Its Shares Tumble 5% Pentium III Delivery Is Set Back 2 Months By LAWRENCE M. FISHER AN FRANCISCO -- Shares of the Intel Corporation dropped by more than 5 percent Friday after the company informed personal computer manufacturers that a faster version of its Pentium III processor would be delayed by two months. Intel shares closed at $54.9375, down $3.0625, in Nasdaq trading. Two analysts lowered their earnings estimates, but the consensus remained unchanged for the current quarter, at 54 cents a diluted share, according to First Call. The delay will affect a version of the Pentium III that will achieve increased speeds by using tinier circuits. This requires a new manufacturing process that reduces the width of each wire etched in silicon to 0.18 micron, from the current 0.25 micron. Analysts said it could slow revenue growth in the second half of the year. "This is the first time I can remember that they had a problem ramping up a process, and this is clearly being delayed because they can't carry it off as rapidly as they thought," said Mark Edelstone, an analyst with Morgan Stanley Dean Witter who cut his earnings estimate for the year and lowered his recommendation on Intel stock from strong buy to outperform. "I don't think they have a lot of downside risk, but this will diminish what would have been growth catalysts for Intel over the next few months." Intel had said it would deliver three versions of the Pentium III on 0.18 technology, running at 600 megahertz, in the second half of the year. "That is still true," said Tom Waldrup, an Intel spokesman. A mobile version will not be delayed, but will ship initially at a 500-megahertz speed, and the server and work station versions will not be affected, he said. "The good news is that we've been able to deliver 600 megahertz this summer with our 0.25 micron process, which we hadn't anticipated," Waldrup said. Intel will report earnings on July 13. Reducing the size of circuits offers several advantages including higher speed, lower cost, less power consumption and less heat. Intel's ability to move its chips to successively more advanced process technology has been one key to its competitive advantage over rivals like Advanced Micro Devices Inc., which has struggled with such transitions. "The one thing we have all learned about yield problems at Intel is, unlike at A.M.D., they don't last months, they last weeks if not days," said Michael Murphy, editor of the California Technology Stock Letter. He characterized the market reaction as "just silly," adding that he was buying Intel shares Friday.