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To: Richard Habib who wrote (25428)	7/13/1999 5:45:00 PM
From: J R KARY	Respond to of 213173

AAPL's AIM partner MOT's earnings beats Street , INTC comes in short MOT's semi-conductor sales up , should set a positive stage for AAPL : ===== " Motorola 2nd-Qtr Profit 44c-Shr: Earnings Instant Insight Schaumburg, Illinois, July 13 (Bloomberg) -- The following is a summary of Motorola Inc.'s second-quarter earnings. Expected Market Reaction Limited. Motorola Inc., the world's No. 2 cellular-telephone maker and third-largest computer-chip company, said second- quarter earnings rose, fueled by a turnaround in its chip business and sales of new digital cellular phones. Profit from operations climbed to $273 million, or 44 cents a share, $6 million, or 1 cent, in the year-earlier period. Some unpublished forecasts were for earnings as high as 45 cents. The average analyst estimate from First Call Corp. was 41 cents. Behind the Numbers Sales rose 7 percent to $7.51 billion from $7.02 billion. Motorola's popular StarTAC line of digital cellular phones is selling well and may be nibbling at No. 1 Nokia Oyj's customer base as well as No. 3 Ericsson AB's. Brian Modoff, a Deutsche Banc Alex. Brown analyst, expected Motorola's cellular phone sales to increase 72 percent from the year-earlier quarter. Analysts expect the restructuring of Motorola's sprawling semiconductor business and the shedding of less profitable chip lines to increase profit margins. The company also took advantage of a resurgence in worldwide demand for chips by focusing on its more-profitable semiconductor products. What the Experts Say ''They had strong growth in both handsets and semiconductors and it shows in the numbers,'' said Modoff, who rates Motorola a ''strong buy.'' He was expecting profit of 43 cents a share. Previous Market Reaction Motorola rose 3/16 to 83 1/8 on April 14, the day after it reported better-than-expected first-quarter earnings and said it would meet or beat second-quarter earnings estimates of 37 cents to 42 cents a share. Market Performance Motorola shares have gained 58 percent this year, setting new highs the past few weeks after more than doubling from a 52- week low of 38 3/8 on Oct. 5. The shares fell 2 1/2 to 96 1/2 today. Jul/13/1999 17:25 (C) Copyright 1999 Bloomberg L.P." ===== Should be interesting tomorrow . MOT took a Iridium hit but still showed a bigger than expected profit while INTC came in a few cents short . Jim K.

To: Richard Habib who wrote (25428)	7/13/1999 6:01:00 PM
From: Eric Yang	Read Replies (2) \| Respond to of 213173

"Fred stated in the last cc margins would be flat to slightly down, figure about 26%. Costs would be up 5-10M. Would assume taxes will be up somewhat sequentially about 13M or so. What are you using for fully diluted shares - 172?" I actually think margin will be flat to slightly higher. 1/3 if iMacs shipped last quarter were of the Rev B variety with lower margin. In comparison this quarter all the iMacs shipped were of Rev C and Rev D and the transition from one to the other was pretty smooth (no major price cuts). Prices for most models remain the same, except that they bumped up the specs. This is usually good for margin but the higher product mix of iMacs can offset some of this improvement to gross margin. Diluted share count is around 173 million shares. But keep in mind we still have to calculate EPS by adding back the interest savings. In other words add $3 million to actual interest savings for the quarter and another $7 million or to simulate the additional interest saving had the notes been converted in the beginning of the quarter... then divide everything by 173. Eric