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

To: Paul Engel who wrote (90081)	10/13/1999 12:39:00 AM
From: puborectalis	Read Replies (1) \| Respond to of 186894

'Given the fact that a number of companies have posted strong results for this quarter, I think Intel is an anomaly this time around,'' said Morgan Stanley Dean Witter analyst Mark Edelstone. Edelstone, who had projected Intel's third-quarter sales and earnings would come in at $7.4 billion and 60 cents a share, said the results were ''obviously a slight disappointment.'' ''But the outlook is pretty good,'' he added. ''The product road map looks solid.'' Edelstone said Intel's shortfall was caused by problems in getting its most advanced processor out to the market rather than fundamental weakness in Intel's business. Intel blamed its difficulties on problems putting a new, more efficient manufacturing process in place. The company had planned to start shipping smaller, more powerful chips made using a 0.18 micron process in August. Instead, Intel won't be shipping that product line -- code-named Coppermine and running at 650 MHz, 700 MHz and 750 MHz -- until Oct. 25. ''I think if Intel had had those products in the market when they originally planned, the shape of this quarter could have been a lot different,'' said Gregory Mischou, an analyst for Warburg Dillon Read LLC, who continues to rate Intel a ''buy.'' Separately, the company also announced Tuesday that it would work with the American Medical Association to create a service that would let authorized doctors to access patient records over the Internet. In many ways Intel's earnings reflected the somewhat topsy-turvy nature of the quarter for the company as a whole. The successful acquisition of a slew of communications chip companies helped pave the way for Intel's introduction of a network processor chip that gives the company a strong entry into the market for telecommunications products -- one of the fastest-growing markets for semiconductors. The company also scored a number of wins in the nascent market for cable set-top boxes by winning processor supply contracts from Hughes Network Systems, NEC Corp., Pacific Century Group and on Tuesday, Nokia Oy. In addition, Intel strengthened its Internet offerings with Intel OnLine Services Inc., a Web hosting service that will be marketed directly to business customers who want to set set up e-shops on the Web. Setbacks during quarter However, the company also had its share of setbacks during the quarter. Even as it was entering the market for a stand-alone network processor, it acknowledged it was abandoning the market for discrete graphics chips that it entered last year. Intel was also hurt at the high end of the processor market when design problems prompted computer companies to delay shipping machines that used as many as eight Pentium III Xeon processors in a single box. More recently, Intel had to delay the introduction of a new chip set using a new memory design from Rambus Inc. when some PCs using the chip set didn't work properly.