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To: IVAN1 who wrote (97159)	1/23/2000 8:47:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

Ivan - Re: " :"This year we expect to grow revenues in our networking, communication and wireless businesses by 50% or more." Does anyone know what the base figure is?" As a bit of a wild guess, I think Intel's existing networking business - that which existed in 1998 - was approximately $1 Billion for 1999. Intel added Level One, DSP, etc, during 1999 and that "probably" brought the revenues up to $1.3 or $1.4 Billion So, I presume that Barrett is hoping to see $2.1+ Billion revenue from these combined groups in 2000. Paul

To: IVAN1 who wrote (97159)	1/24/2000 4:46:00 AM
From: Amy J	Respond to of 186894

Ivan1, RE: Barrett added. "This year we expect to grow revenues in our networking, communication and wireless businesses by 50 percent or more." 1. Network Biz: One article (1998?), said Intel went from $0B to $1B in 2 years in the network biz. Another article said, "Its network business accounted for about 10% of the company's $26 billion in 1998 revenue," see below. I remember being impressed with this. However, this needs some investigating: Network Communications Group -- Unit shipments of Fast Ethernet connections were flat sequentially in the fourth quarter. For 1999 Fast Ethernet connections were up from 1998. -- Embedded processor and microcontroller unit shipments were down sequentially in the fourth quarter. For 1999 units were up from 1998. 2. Some of 1999 Intel communication and network acquisitions: DSP Communications, IPivot, Parity Software Development Corporation, and the Telecom Component Products Division of Stanford Telecommunications, Dialogic Corporation, Level One. 12 businesses for approximately $6 billion per one estimate. (I haven't verified this info. To do so, one could check www.intc.com) 3. From Intel's Business Outlook intc.com -- The company expects revenue for the first quarter of 2000 to be slightly down from fourth quarter revenue of $8.2 billion, due to seasonal factors. -- Gross margin percentage in the first quarter of 2000 is expected be approximately flat with the fourth quarter. Intel's gross margin expectation for 2000 is 61 percent, plus or minus a few points, compared to 59.7 percent for all of 1999 -- Capital spending for 2000 is expected to be approximately $5.0 billion, up from $3.4 billion in 1999. The higher anticipated capital spending is the result primarily of expenditures related to the development of next generation 0.13-micron process technology for both 300 mm and 200 mm, in addition to increased spending on new fab construction and equipment purchases to add 0.18-micron capacity. Fourth Quarter 1999 Business Review ... Wireless Communications and Computing Group -- Flash memory unit shipments in the fourth quarter set a new record and resulted in a record year for flash units. Communication Products Group -- Unit shipments of switches were up sequentially in the fourth quarter. For 1999 units were up from 1998. 4. Quotes from a Network World article: The 10 most powerful companies in networking January 14, 2000 12:00am Source: Network World BY NETWORK WORLD STAFF Intel ....The company has bought its way into hot product areas, such as virtual private networks via the Shiva acquisition and Gigabit Ethernet switching through its XLNT buyout. Intel's goal is to provide small and midsize companies with key network products, running the gamut from network interface cards to routers. ....In September, the company announced the creation of the Intel Online Services division for Web hosting. Out of the starting block, Intel Online Services was running with two operational Internet services centers (at least three others are planned) and providing collocation services to customers. In early 2000, Intel will accelerate from Web hosting to the provisioning of application services, including e-commerce. ...Intel's chief concern remains selling processors, and what better way to drum up business than by helping build networks capable of handling increasingly faster computers? Its network business accounted for about 10% of the company's $26 billion in 1998 revenue. 5. Level One: Intel Corp. buys Level One Communications Inc. for $2.2 billion. 559 employees. 1998 net income is $22.9 million on revenues of $263 million. 6. Quotes from an article in CMP Media Inc.: Inside Intel -- The Chipmaker Aims To Evolve Into A Supplier Of The Building Blocks Of The Net Economy January 18, 2000 12:00am ...The company posted fourth-quarter revenue of $8.2 billion, and its 1999 sales of $29.4 billion represented a 12% increase over the previous year ...Barrett says the days of big growth in that sector are over. "From 1990 through 1998, chip sales had a 35% compound annual growth rate. It's not going to do that anymore," he says. "We need to grow in areas other than that core business." By Paul McDougall <<INFORMATIONWEEK -- 01-17-00, p. PG38>> 7. Quotes from ELECTRONIC ENGINEERING TIMES : Dallas (SI Reply # 83101) The VoIP market grew by more than 400 percent last year, Crupi said. For Intel's part, John Miner, general manager of the enterprise server group (Santa Clara, Calif.), said that "if you look at the overall pattern of our acquisitions, it should be clear that our intentions are to be a major participant in network infrastructure for tele-communications, data communications and the convergence of the two. The Level One acquisition provides silicon for the physical interconnect between the WAN [wide-area network] and telecommunications network and data network," and the Dialogic acquisition provides a different piece of the computer-telephony-integration (CTI) puzzle. "In the CTI environment, you're going to have several different interfaces-from the voice network to the computer and from the computer to the LAN, WAN or Internet," Miner said. Dialogic is considered the largest of the CTI board houses. The company's 1998 revenue was $294 million