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

To: John O'Neill who wrote (90040)	10/12/1999 9:08:00 PM
From: puborectalis	Read Replies (2) \| Respond to of 186894

The glass is half full.........Intel Addresses recent problems By Marcia Savage Santa Clara, Calif. 8:13 PM EST Tues., Oct. 12, 1999 Despite recent pricing pressures and some unanticipated bumps in its road map, Intel Corp. expects to end the year on a high note. The chip maker, based here, posted third-quarter earnings Tuesday that fell slightly short of Wall Street expectations. But Intel executives said they expect revenue for the fourth quarter to be up from the third quarter. "We expect strong seasonal demand for all products," said Andy Bryant, Intel's senior vice president and chief financial officer in a conference call with analysts Tuesday. Average selling prices were lower than expected, citing Intel's gain of market share in the low-priced processor segment and the delayed introduction of the high-performance Pentium III chips produced on 0.18-micron process technology, Bryant said. The company's recent acquisitions also put pressure on earnings. Intel acquired four companies during the third quarter: Dialogic Corp., Parsippany, N.J.; Level One Communications Inc., Sacramento, Calif.; Softcom Microsystems Inc., Fremont, Calif.; and NetBoost Corp., Mountain View, Calif. Including acquisition-related costs, Intel said its net income was $1.5 billion or 42 cents per diluted share on revenue of $7.3 billion. That compares with net income of $1.6 billion or 44 cents per diluted share on revenue of $6.7 billion posted for the year-ago quarter. Excluding acquisition-related costs, net income was $1.9 billion or 55 cents per diluted share. That result missed by 2 cents analysts' consensus estimate of 57 per diluted share, according to First Call Corp. Acquisition-related costs included $333 million in one-time charges and $121 million of amortization of goodwill and other intangibles. "On a geographic basis, demand remains strong," said Paul Otellini, executive vice president and general manager, Intel Architecture Business Group. "At this point, we believe our supply of materials from Taiwan-based manufacturers is not impacted." Otellini spent some time Tuesday addressing some of Intel's recent problems, including the last-minute cancellation of the Rambus-supporting 820 chipset due to a technical problem. The company is continuing "validation activity" on the chipset. Intel expects to ship the chipset sometime in the fourth quarter, he said. Otellini added that none of the upcoming Coppermine chips produced on 0.18-micron will be stalled due to the 820 delay. Problems with its most recent Pentium III Xeon chips has been resolved, he said. The flaw showed up in eight-way servers using 550MHz Xeons with 512Kbyte or 1Mbyte of Level 2 cache with Intel's Saber motherboard. Asked whether Intel's recent troubles, from the delayed Merced to the 820, were random or representative of a systemic problem, Otellini said he preferred to call them random. The Merced problem was related to the complexity of the 64-bit project, and occurred over a year ago, he said. Since then, Intel has been on schedule for producing the chip in mid-2000. As for the 820, he said: "The problems are fundamentally tied up in our ability to debug a new technology between us, Rambus, our OEMs and board suppliers. That's a very complicated technology. Moving to the next generation is always a little more difficult than people give us credit for," he said. Overall, Intel is moving its road map faster than it has in the past due to competitive pressures and market demands, he said. "I believe we've put in place corrective actions in our engineering teams to be able to do a better job of hitting our commitments internally and to our customers," Otellini said.

To: John O'Neill who wrote (90040)	10/12/1999 9:36:00 PM
From: Road Walker	Read Replies (1) \| Respond to of 186894

On July 13th, Intel missed 2nd quarter earnings "expectations" by two cents, but gave a positive outlook for the coming quarter. The stock closed at 65 3/8 that day. INTC is up about 17% since that "miss". Today Intel "missed expectations" by two cents, but gave a positive outlook for the coming quarter. Bottom line, Intel's financial performance is the envy of 99% of US companies. The analyst's quarter by quarter expectation game is a distraction, it makes you think good companies are bad and bad companies are doing great. I will be happy with a 17% increase in INTC this quarter. If there isn't a significant change in the markets, by the end of the 4Q, the market will reward Intel for it's performance. The two cent miss today was no more significant than the two cent miss on 7/13. John