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.

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

To: GVTucker who wrote (93761)	12/10/1999 9:21:00 AM
From: Road Walker	Read Replies (1) \| Respond to of 186894

GV, re: Itanium You are probably right. I was looking at the headline statements, and also looking for specific recommendations based on Itanium. I now understand that if the significance of the product is well over a year away, the press and the analysts wouldn't be starting the hype at this point. FWIW, the latest Intel has revised guidance (since 1996) is the 10th day of the last month of the quarter. So we can probably assume that, it we get through today, their visibility to the quarter's results are clear, and that the report will be fairly close to their guidance. A reminder: The company expects revenue for the fourth quarter of 1999 to be up from third quarter revenue of $7.3 billion. Gross margin percentage in the fourth quarter of 1999 is expected to be up a couple points from the third quarter. In the short term, Intel's gross margin percentage varies primarily with revenue levels and product mix as well as changes in unit costs. Expenses (R&D, excluding in-process R&D, plus MG&A) in the fourth quarter of 1999 are expected to be approximately 9 to 12 percent higher than third quarter expenses of $1.8 billion, primarily due to higher seasonal spending on advertising and marketing and a full quarter of expenses from companies acquired during the third quarter. Expenses are dependent in part on the level of revenue. R&D spending, excluding in-process R&D, is expected to be approximately $3.1 billion for the full year 1999, up slightly from previous guidance of $3.0 billion primarily due to R&D spending of companies Intel acquired during the quarter. The company expects interest and other income for the fourth quarter of 1999 to be approximately $280 million, depending on interest rates, cash balances, the company's ability to realize expected gains, and assuming no unanticipated items. The tax rate for the fourth quarter is expected to be approximately 33 percent, excluding the impact of acquisition-related costs from both prior and potential future mergers or acquisitions. Capital spending for 1999 is now expected to be approximately $3.3 billion, up from previous guidance of $3.0 billion, due primarily to capital spending of the companies Intel acquired during the third quarter and the earlier than expected capital ramp of Intel Online Services. Depreciation for the fourth quarter of 1999 is expected to be approximately $830 million. ** Amortization of goodwill and other acquisition-related intangibles is expected to be approximately $185 million in the fourth quarter. John