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

To: Barry Grossman who wrote (103548)	5/19/2000 3:45:00 PM
From: Road Walker	Respond to of 186894

Friday May 19, 3:38 pm Eastern Time Intel revises 1st-quarter EPS by a cent for faulty chipset NEW YORK, May 19 (Reuters) - Intel Corp. (NasdaqNM:INTC - news) said on Friday it revised its fiscal first-quarter earnings per share down by a penny and lowered sales by $28 million for a defective chipset that was in distribution at the time the flaw was discovered. ``What we did was revise downward by a penny a share the results from the first quarter for product in our own inventory and in the distribution channel,'' said Intel spokesman Tom Waldrop, referring to the first quarter ended April 1. ``This is product not yet in the hands of end users. In addition we wrote down some of the inventory.'' Waldrop said the revision, which was disclosed in a filing to the Securities and Exchange Commission earlier in the week, did not include the potential impact of replacing the motherboards, on which chips are mounted, to end-users. Intel reported first-quarter results on April 18. The company has said the replacement of those faulty motherboards could cost Intel as much as a few hundred million dollars. The pretax impact of this week's revision on profit was $53 million, the company confirmed. ``This was reversing some revenue for product still in distribution, through our direct customers which include computer makers and motherboard makers and in the distribution channel itself,'' said Waldrop. --------------------------------------------------------------------------------

To: Barry Grossman who wrote (103548)	5/19/2000 3:46:00 PM
From: JDN	Respond to of 186894

To all: These people are starting to look like the "Cant shoot Straight" gang. JDN Intel Cuts 1st-Qtr Earnings to Pay for Faulty Chipset Santa Clara, California, May 19 (Bloomberg) -- Intel Corp., the world's No. 1 computer-chip maker, cut first-quarter earnings per share by a penny after it had to write down inventory and reverse $28 million in sales because of a faulty chipset. Intel, which earlier this month offered to replace about 1 million motherboards that had problems with memory, made the disclosure in a quarterly filing with the Securities and Exchange Commission. Intel shares fell 6 13/16, or 5.5 percent, to 117 1/8 in midafternoon trading. The company expects further charges to cover costs of the recall. Analysts have estimated that the charges could be as much as $300 million. The problem, which causes some personal computers to shut down or freeze up, is in the set of computer chips that surrounds a Pentium III processor in a PC. ``It's the tip of the iceberg,'' said analyst Drew Peck of SG Cowen Securities Corp., who rates Intel a ``neutral.'' ``The potentially much larger charge will be the fix they will provide to customers.'' Intel said in the filing that first-quarter sales were $7.99 billion, revised down from $8.02 billion. Net income was $2.7 billion, or 77 cents a share. Last month, the Santa Clara, California-based company reported net income, including a gain on reversing a tax provision, of $2.73 billion, or 78 cents. The cost of fixing the problem with the so-called memory translator hub could be quite steep because the company can't just fix the faulty parts of the motherboard. Intel hasn't figured out what's causing the problem, so it has to give customers an alternate product. The memory translator hub was used in the company's 820 chipset to allow that set of chips to work with less- expensive synchronous dynamic random access memory, instead of Rambus Inc. memory. Peck said it's likely that Intel will replace the faulty motherboards with new ones containing Rambus memory, boosting the cost to Intel. Memory chips with Rambus technology are much faster than other types of memory, though they haven't been as popular because they're more expensive. Intel shares have risen 44 percent this year, though they've fallen about 19 percent since touching a record 145 3/8 on March 22. May/19/2000 14:38 ET