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

To: Tony Viola who wrote (102546)	4/18/2000 6:07:00 PM
From: Dom B.	Respond to of 186894

Great quarter, guys! Congratulations... Good job guys, great earnings... None! Not anyone saying those, so far!!!

To: Tony Viola who wrote (102546)	4/18/2000 6:11:00 PM
From: Tony Viola	Read Replies (1) \| Respond to of 186894

A tough question about Intel Architecture Group growth: why so low year over year? Otellini said that chipsets and mobos, which are included in the IA group, are actually down YOY, so micros are not as bad as hey look (they are up, but not to the satisfaction of the questioner). Still, need to get rid of that supply constraint problem, IMO. Intel is predicting that this will happen in 2H. Tony

To: Tony Viola who wrote (102546)	4/18/2000 6:14:00 PM
From: Mani1	Read Replies (1) \| Respond to of 186894

Tony re <<One more quarter for AMD to dance and then slam the door.>> Are these your word or Bryant's? Mani

To: Tony Viola who wrote (102546)	4/18/2000 7:13:00 PM
From: Amit Patel	Read Replies (1) \| Respond to of 186894

CC Notes : Please ignore if already posted and please ignore the typos and some missing details (would appreciate if someone else can fill up missing info or provide corrections). I'll skip what is already available from the earnings report. Thanks. -Amit. - 8B revenue, 88c earnings (17c from tax gains). - IABG Revenue down 5%. uP ASP flat from Q4. - demand for Q2 seasonally high. - Unit shipment : uP flat, chipset, flash new record from Q4. - GM 63% in Q1 (61.3% in Q4) Exceeded forcast. 59.3% in Q1 99. - high R&D, Prod/mfg expenses. - Interest income significantly higher. - 9.8 million shares buyback. - Were not able to rebuild inventory and will not be able to for Q2. Supple > demand. - Q2 guidance : - Rev almost flat. (Q2 = Q1). - GM down by a percent point. (~62%). Cost of .18 micron transition. - Supply will be a challenge. - H1 unusually strong. H2 strong. - GM for 2000 61+/-2% (most likely on the higher end). - Capital spending significantly higher from 1999. - Supplu tight, 12 new uP introduced in Q1. Record transition to 0.18u. - Global uP demand sesonally strong. USA/Europe down. Japan/APAC higher. - ASP flat. demand will drive strong H2. (B2B, ecommerce infrastructure). - 1000s of itanium prototype shipped. - 2nd server farm in virginia in Q2, 3 more in Q3. 10 by EOY. Q/A : Q : Prudential security. .18 micron transition roadmap ? A : 50% in Q2. 90% by EOY. Ramp faster than any previous transition. Q : Supply trend. Can you meet H2 demand uptick with your current supply/inventory. A : Yes, enuf to meet H2 uptick [IMO : GREAT NEWS]. Q : Missed one here. Q : Bear sterns.Competition. Should Intel get more competitive. (I thing he meant price reduction). A : We are pleased with our product line now and whats in the pipeline. Competitatively we are as good as ever and will get better and stronger in H2. (So, no major price reduction. I think.). Q : 1GHz ? when. A : shipping now. Will get to volume in Q2. Q : laptop tightness in supply. A : No softness in supplu for laptops in Q1. Q : Our Pal Drew Peck. Did you sell security to meet EPS ? A : We dont work backwards. We do what makes sense from business perspective, not from market perspective. Too complex to explain the decision of what to sell. Q : Any prediction for 2000 revenue ? A : No we dont give out. (Every single CC, we go through atleast one such Q/A!) Q : ? A : Capital spending 5B -> 6B, because demand much stronger, we need to ensure capacity. We had underestimated demand. Q : any expected tightness in 0.18u williamette ? A : By the williamette ramps up,there wont be any capacity problem. Q : Tad LaFountain : IABG gr rate only 3% when spike in demand ? why ? A : chipset demand down. ASP eroded over a year ago. Diminished effect of unit growth. Hence. Q : why 12 in wafer reduce cost by 30% (not sure, why thius belongs in a Cc). A : cost per die reduces by 30%. Q : Ashok Kumar. 1H to 2H split in business. A : normal H1, H2 split. Meaning that H2 will be lot stronger than H1 of 2000. [AWESOME NEWS. THE MOST IMPORTANT, IMO]. Q : ABN Amro. New plants difficulty in ramping ? A : First (current) 5 hardest to transition. The next 3 (to 0.18u) should be easier to convert. (Good news). Q : Xeon yield poroblem (esp on-chip cache 1M). A : No yield problem on 0.18 at all. The problem is shortness in supply and underestimated demand. Q : How much lost production on the 5 fabs during conversion. A : Different for different fabs. Not sure eactly. Q : JP Morgan. Competition. Price reduction to compete ? A : Q1 flat from Q4 in terms of market share. Q4 was up by 2% in terms of marketshare over Q3. So, no marketshare erosion for Intel. The demand rise is helping both companies (maybe that will restore peace on AMD and Intel SI/Yahoo threads (: ) Q : why should ASP not rise when no NSM/Cyrix/IDT/Rise etc and demand so high ? A : PC buyers like lower price point + there is competition (AMD). Q : Cant give priority for manufacturing under this tight condition to maximise on profit. (For example, favor P3, Xeons over Celerons). A : Already committed to customers for Q2. (hence dont expect much Q2 upside). Please we want to compete on all products. And not give away a product and then fight back to regain it later (good question and good answer, imo). Q : why underestimating demand for 4 quarters in a row ? A : Wirldwide economy (asia) recovered lot faster and internet growth exceeded all estimates. Q : Can we expect growth in high teens next couple of years, as opposed to low teens. A : cant answer that. But the growth will be higher that what we thought before. Q : Missed last 3/4 questions. Overall, IMO, decent quarter. Short term stock price ? who knows! But looks pretty good overall medium to long term out.

To: Tony Viola who wrote (102546)	4/18/2000 7:24:00 PM
From: Pravin Kamdar	Read Replies (2) \| Respond to of 186894

Tony, One more quarter for AMD to dance and then slam the door. I agree. After one more quarter, AMD will be in volume production of 1.25 Ghz Thunderbirds and 700 Mhz Spitfires. AMD will be kicking Intel off the dance floor and shutting the door behind them - trying not to let it hit them on their way out! Even you must have heard the tone of the CC. Intel is in big trouble. Fortunately, demand is high for Intel's non-capacity constrained competitor. Cheers, Pravin.