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To: Tony Viola who wrote (19266)	7/13/1999 5:19:00 PM
From: patrick tang	Read Replies (1) \| Respond to of 25814

Ah! That means they can make money on Celeron As!! And with 500mHz coming out on Celeron A, the 2.3M K6-2 looks like a lead anchor around AMD's throat! The K6-2 loses are going to killed AMD. No K6-2, can't sign up the big boys. With K6-2, wrap two $20 bills around each one that they sell. Damned if they do and damned if they don't. Must not be much fun at the 'white' house. Faster CPUs, more high speed net, more advanced STBs, more storage, need them digital cameras etc. etc. Looking good... patrick

To: Tony Viola who wrote (19266)	7/13/1999 5:31:00 PM
From: shane forbes	Read Replies (1) \| Respond to of 25814

Maybe but maybe not... Their Architecture segment's revenues dropped 14% sequentially and their EBIT in this segment dropped about 400 basis points - this usually would have been enough to tank the stock.... An increase in GM by 200 basis points going forward (from the current 59% to 61% - though this is for the entire company and INTC will not break it out. Interestingly the other biz segemnts are now break even and they had -50% or so margins last quarter. I wonder how much of the 'improvement' is due to this.) will not compensate for this kind of sequential revenue drop as the lower revenue base may not offset the profitability improvements going forward. More likely they will be getting some s/t benefit of NSM departing for a short while until VIA comes in again sometime later this q. For example WIP inventory is up strongly - a good thing. But their overall revs did not drop further most likely because of their frenetic purchases since it is difficult for me to believe that the 75+% sequential increase in the other biz segments was internal. There are other reasons why the report was pretty good. Not least of which is that this appears to be the low point in many financial respects... Nuff said. MOT will do well and this is more important to LSI.