>>The press release title says EPS of 42 cents a share, and the spreadsheet shows the 121 million in goodwill and 333 in purchases. I am not an accountant, so don't understand what is being cooked.<<
If you think the average investor thinks INTC made 42 cents/share..you must be joking....
You know...I think TYCO would hire some of you on this thread...their accounting tech are legal...but somehow the realization of how they drive the numbers has surfaced...
here was CBS spin on INTL...you gotta be kidding to think theperception is that intc made 42 cents (though that is the correct number)...i wonder how much TYCO really makes...after costs etc...
Where is 42 cents??? all the mainline press articles/TV were similiar
Intel misses third-quarter profit targets
Chip giant's stock plunges after hours
By Janet Haney, CBS MarketWatch
Last Update: 7:39 PM ET Oct 12, 1999 Silicon Stocks
Hardware Report
SANTA CLARA, Calif. (CBS.MW) -- Intel Corp. missed its profit target for a second consecutive quarter Tuesday, surprising Wall Street and causing shares of the world's largest chipmaker to plunge in after-hours trading.
Intel (INTC: news, msgs) reported third-quarter earnings of $1.9 billion, or 55 cents a share, compared to $1.6 billion, or 44 cents a share in the same period last year. Analysts had expected earnings of 57 cents a share, according to a survey by earnings research firm First Call..
Shares of the Santa Clara, Calif. company fell more than 6 11/16 in after-hours trading to as low as 70, after closing at 76 11/16 during the daytime session Tuesday, up 3/16.
"With all the build-up and the hype, it certainly is a big disappointment," Ken Pearlman at CIBC World Markets said following the release. "They did very well in revenue, but unfortunately gross margins went down sequentially, which is absolutely not what we were expecting.
Revenue in the period rose to $7.3 billion from $6.7 billion in the third quarter of 1998.
Acquisition charges consisted of a one-time charge of $333 million for in-process research and development, the company said.
Last Wednesday, Intel's biggest rival in microprocessors, Advanced Micro Devices (AMD: news, msgs), reported a narrower-than-expected third-quarter loss, as the troubled chipmaker got a lift from sales of its Athlon processors and flash-memory products. See full story.
Average selling prices of microprocessors were lower in the third quarter than that of the second quarter, Intel said in a press release.
"The problem is with pricing, as we suspected it would be," CIBC's Pearlman said. "Even though revenue was higher, pricing was down again for the second time ever. It's quite a scary trend."
Intel said it expects revenue in the fourth quarter to increase from that posted in the third quarter, along with a slight gain in gross margin points. Andy Bryant, Intel chief financial officer, said during the company's conference call, that the gross margin percentage in the third quarter was 58.7 percent vs. 59.4 percent in the second quarter. Expenses, though, are expected to be 9 percent to 12 percent above the third-quarter level of $1.8 billion.
Additionally, Paul Otellini, executive vice president and general manager of Intel's architecture business group, said during the call that Pentium III is now the highest volume shipping microprocessor for computers.
Intel will unveil its Pentium III and Pentium III Xeon processors based on 0.18 micron technology during an event on Oct. 25.
"These products will be for notebooks, servers and desktops, with desktops above 700MHz," Otellini said.
The third quarter
Intel's third quarter was a busy one.
The company bought four companies in the period. These include: Dialogic Corp., Level One Communications, Softcom Microsystems, and NetBoost Corp.
The company named its fast 64-bit microprocessor chip for powerful business machines "Itanium." The chip, designed to run workstations, was previously known as the Merced.
The Camino, or 820, chip set also received a fair amount of attention during the quarter. Launching delays have affected Rambus' (RMBS: news, msgs) DRAM chips, causing production setbacks. Intel's Camino chip set works with Rambus' technology.
In early September, Intel said it's "firmly committed" to Rambus direct dynamic random-access memory as the memory of the future. See related story.
Net push
In late September, Intel said it would spend more than $1 billion to develop its Internet hosting plan, called Intel Online Services, and foresees data centers around the world. See full story. At the time of the announcement, Intel said it will have 12 data centers operational by the end of next year.
Additionally, last week, Intel it would buy privately held IPivot Inc. in a $500 million cash deal that extends the chip king's incursion into the Internet-fueled networking-equipment industry. IPivot makes specialized equipment for e-commerce companies. See full story.
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