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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: rudedog who wrote (68062)	9/29/1999 5:34:00 PM
From: The Duke of URL©	Read Replies (1) \| Respond to of 97611

Thank you for that insight. Duke

To: rudedog who wrote (68062)	9/29/1999 7:46:00 PM
From: Elwood P. Dowd	Read Replies (3) \| Respond to of 97611

Wednesday September 29 7:38 PM ET Intel Has Bug In Some Versions Of Pentium III Xeon SAN FRANCISCO (Reuters) - Intel Corp. (Nasdaq:INTC - news) said it has discovered a bug in two versions of its Pentium III Xeon processors for the server and workstation market, a bug that will delay the shipment of servers based on the chip. Intel said it is still shipping the chips -- a Pentium III Xeon with a speed of 550 megahertz and a level two cache of 512 kilobytes, and the other with one megabyte of secondary cache. Both chips run in configuration of eight processors on an Intel motherboard, called the Sabre. Cache is a reserved section of memory to improve performance. The Pentium III Xeon 550 megahertz with two megabytes of level two cache is not experiencing any problems, Intel said. ''We expect to have the root cause and solution within the next few weeks,'' said Chuck Mulloy, an Intel spokesman. ''We are still shipping those, but telling customers not to sell those systems and we are not shipping them with the Sabre motherboards right now.'' Intel said that because it is continuing to ship the chip, which can be used by systems makers with other motherboards, the flaw will not be material to its earnings. Santa Clara, Calif.-based Intel plans to ship a so-called ''workaround,'' or bug fix, to its customers, when it has one. The bug appears when a system is pushed to its highest performance limit, resulting in a total system crash, or what is referred to by some in the industry as the ''blue screen of death.'' Mulloy noted, however, that most of Intel's customers who are ordering the Pentium III Xeon 550 megahertz for servers in eight-way configurations are ordering the version with two megabytes of secondary cache. A Dell Computer Corp. spokesman said that Dell's PowerEdge servers use the 550 megahertz Pentium III Xeon, but that Dell is currently only shipping the version with two megabytes of cache. ''Anything that is going to ship out is the two meg version,'' said David Brandt, a spokesman for Dell in Round Rock, Texas. ''We announced that product in August and are shipping it next week.'' Compaq Computer Corp. (NYSE:CPQ - news) of Houston said that its ProLiant 8000 and ProLiant 8500 servers are unaffected by the Intel bug, because Compaq designs and manufactures its own 8-way server motherboard. ''Compaq and Intel have confidently determined that the 'bug' is confined to the Intel Sabre motherboard and there have been no problems with respect to the Compaq design,'' Compaq said in a statement. Erika Klauer, an analyst with Deutsche Bank Alex. Brown, said in a note to clients earlier Wednesday that the impact from the bug on Intel's earnings should be ''quite small, if not negligible.'' ''It becomes clear then that a very small portion of Intel's units shipped will be affected by this problem -- certainly fewer than 1 million,'' Klauer said. ''In addition, we would expect that this problem will be fixed by the end of the fourth quarter, at the latest.'' This is not the first time a bug has plagued the Pentium III Xeon processor family. When the first versions of the chip family were introduced in June of 1998, some versions had flaws with their accompanying chip sets. Search News Stories Search News Photos Sep 28 \| Sep 27 \| Sep 26 \| Sep 25 \| Sep 24 \| Sep 23 \| Sep 22 \| Sep 21 \| Sep 20 \| Sep 19 Home \| Top Stories \| Business \| Tech \| Politics \| World \| Local \| Entertainment \| Sports \| Science \| Health