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

To: Jim McMannis who wrote (77346)	10/27/1999 11:39:00 AM
From: tejek	Respond to of 1572619

WITH ALL ITS FAB SPACE, IS IT POSSIBLE THAT INTC CAN NOT KEEP UP WITH DEMAND LIKE THEY CLAIM? ______________________________________________________________________ Intel Falls on Concern Manufacturing Problems May Hurt Revenue Santa Clara, California, Oct. 27 (Bloomberg) -- Intel Corp. shares fell as much as 3.6 percent on concern that the world's largest computer-chip maker may be having trouble making processors to meet demand. Intel fell 1 5/8 to 69 13/16 in midmorning trading of 13.9 million shares, making it the second-most active U.S. stock. The shares earlier touched 68 7/8. They've risen about 17 percent this year. The company unveiled 15 faster Pentium chips on Monday, reclaiming the lead from rival Advanced Micro Devices Inc. after a delay that led to lower net income in the third quarter. Analyst Jonathan Joseph at Salomon Smith Barney said the company may still be unable to fill all its orders. ''We are getting multiple reports that Intel is still having some manufacturing issues this quarter and is having trouble meeting all the commitments it made to customers,'' Joseph said in a report released this morning. Joseph said reports of cancellations from Taiwan and Year 2000 issues put ''a short-term cloud over Intel's performance in the fourth and first quarters.'' He lowered his fourth-quarter earnings estimate by 5 cents to 59 cents a share and the 2000 estimate to $2.65 from $2.85. He didn't change his forecast that Intel's shares will reach 95 in 12 months. Intel spokesman Howard High said the company isn't having manufacturing problems, though ''there is some tightness in various supplies because people want to buy more than we can make.'' ''We have said that the fourth quarter will be stronger than the third quarter,'' he said. Intel's third-quarter net income fell to $1.46 billion, or 42 cents a share, from $1.56 billion, or 44 cents, in the year- earlier period. The earnings were hurt by lower microprocessor prices and delays in releasing the chips. The company is forecast to earn 63 cents in the fourth quarter, the average estimate of analysts from First Call Corp. Dow Jones & Co. said yesterday that Intel will be one of four companies added to the Dow Jones Industrial Average. Oct/27/1999 11:11 For more stories from Bloomberg News, click here. (C) Copyright 1999 Bloomberg L.P.