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Technology Stocks : Intel Strategy for Achieving Wealth and Off Topic -- Ignore unavailable to you. Want to Upgrade?

To: Tony Viola who wrote (24057)	7/14/1999 10:12:00 AM
From: Ann Janssen	Read Replies (1) \| Respond to of 27012

Hi Tony, Thanks for posting the 'rest of the story'. I'm glad you took the time to listen/read to the report. I knew you would, your very good at reporting. Did you miss your calling?? <GGG> If you just heard they missed the numbers people were really missing a lot of the 'good stuff'. 59% GM is nothing to sneeze at. I heard last night on CNBC that profits were up %49 over last year same quarter. And besides that INTC did warn that 2nd Q wasn't going to meet Analysts expectations so there were no real surprises there. The analysts on CNBC last night were all very bullish on INTC. Looks like the rest of the market is too. Were up 1 1/2 already. You have a great day in paradise!! <ggg> It's back to the normal summer here. High of 94, high humidity of course, but I'm not complaining until it's over 100!! LOL!! Take Care Ann Heres what breifing.com had to say this morning. 08:38 ET Chip Upgrades : Salomon Smith Barney upgrades Intel (INTC) from "outperform" to "buy" 18:05 ET ****** 13-Jul-99 Intel (INTC) 65 3/8 -1/16: It is shaping up to be a weak year for Intel. The company reported Q2 EPS of $0.51, missing the First Call estimate by two cents. The revenue number was the problem for Intel this quarter. At the beginning of the quarter, the company expected revenues to be "flat to slightly down" from Q1; in fact, they fell a more-than-slight 5.0%. The earnings miss would have been much worse had it not been for the fact that gross margins held at 59% instead of falling, as had been expected. Cost improvements and manufacturing efficiencies offset the lower average selling prices that were the result of a shift to Celeron processors. The future looks much like the recent past for Intel. Q3 revenues are expected to rise only slightly from Q2, which is not that impressive given a seasonal tendency for revenues to rise better than 7% in Q3. Cost cutting will help keep margins high, however, which will in turn help to support earnings. But based on today's guidance, higher margins will probably not be enough to prevent Q3 earnings from missing current analyst estimates. The First Call estimate for Q3 was $0.58 prior to today's release, but Intel's guidance points to a number closer to $0.52. The problems for Intel are clear -- the market is moving rapidly to its lower price Celeron processor. The demand for ever higher processor speeds is not there, and the growth segment of the market is shifting to the low end. We have been arguing for more than a year that processor speed is the old paradigm and that Intel will struggle to remain a growth company in that environment. Today's earnings report gives us more confidence that this view is correct. INTC shares initially dropped 2 points in after hours trading, but subsequently rebounded to near unchanged. - GJ