Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Ali Chen who wrote (75460)	10/14/1999 12:20:00 AM
From: kash johal	Read Replies (3) \| Respond to of 1573092

Ali, Re: "Intels numbers" You may well be right about creative accounting. We know about the $400M stuff of disti in Q2. Unfortunately Q3 also had 4 acquisitions and there is ALWAYs a bunch of legitimate plus creative accounting when that occurs anyway. Having said that I don't hold the view that they are scamming the market. I just think they are playing the game by the rules and playing hard. IBM plays the stock buyback + creative accounting game much more agressively than Intel for example to make its earnings/share look reasonable. Overall it was a clearly a crummy quarter due to price erosion and the slip of camino coupled with the coppermine design and process slips. And this quarter they had great flash business as well as a couple of cents/share from dialogic/level one. So the real slip was more like 4-5 cents per share. I see this quarter as being a real challenge for Intel. And if any of the rumors of coppermine compatibility problems are true they could have a disastrous quarter. regards, Kash

To: Ali Chen who wrote (75460)	10/14/1999 1:06:00 AM
From: Charles R	Respond to of 1573092

Ali, <Look at Intel's creative accounting this quarter, (see the very last table in intel.com. ): Intel Architecture Business Group: 2Q99 revenue 5,559; profit 2,305 3Q99 revenue 6,331; profit 2,789 Looks like a perfect CPU business, same fat margins as before, right? Now look at "all other" business, including presumably booming flash : 2Q99 revenue 1187, profit +15 3Q99 revenue 997, profit (-733) !!!!> Yeah, I noticed that at earnings time but it was too hard to tell what the hell is going on. We already discussed the 400M fudge from last Q and Kash pointed out that the earnings would have been worse without the uptick in flash. One reason for the jump in losses, I am sure, is the Internet venture. Networking business is another area Intel might have suffered some setbacks. I have heard some not so good things about Intel in that area lately. But, I doubt if there was enough investment on the internet side or losses on the Networking side to get anywhere close to the -733 number. So, there is fudge here. It seems that Intel is overstating the profits in the microprocessor business. But, it would be impossible to get to good numbers with the limited data that is given out. Chuck