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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: gnuman who wrote (42860)	5/23/2000 9:36:00 AM
From: richard surckla	Read Replies (1) \| Respond to of 93625

Gene Parrott... "The heat spreader serves two functions:" Read post #42846

To: gnuman who wrote (42860)	5/23/2000 9:37:00 AM
From: Don Green	Read Replies (1) \| Respond to of 93625

Merrill Sees Intel Taking $500M Chg For Product Recall Dow Jones Newswires May 22, 2000 NEW YORK -- Intel Corp. (INTC) could wind up spending $500 million to recall and replace defective circuit boards, according to a Merrill Lynch & Co. analyst. Earlier this month, Intel said it would recall just under 1 million motherboards - which are the main circuit boards in a personal computer - because of a glitch that can cause computers to freeze up or spontaneously reboot. Joseph Osha, Merrill Lynch's head semiconductor analyst, told clients in a phone message Monday that he increased his estimate of the expense to $500 million from an earlier forecast of "a few hundred million dollars." In previous statements, Intel said that it has yet to determine the cost of replacing or refunding customers for the flawed motherboards but said it expects to take a "material" charge of "several hundred million dollars." Osha said he hiked his estimate because Intel will replace memory in the defective motherboards with technology designed by Rambus Inc. (RMBS), which is much pricier than the SRAM, or synchronous random access memory, that Intel originally used. Osha said Rambus memory costs $600 a chip, compared with about $100 a chip for SRAM. Osha left his per-share earnings targets for the second and third quarters at 72 cents and 76 cents, respectively, explaining that it isn't yet known whether Intel will treat the recall as a one-time charge against earnings, or as a recurring expense. The recall caused Intel to restate its first-quarter earnings in a filing with the Securities and Exchange Commission last Tuesday. It cut its reported earnings-per share by a penny to 77 cents and reversed $28 million in revenue recorded from sales of the defective boards. Intel shares ended trading on the Nasdaq Stock Market Monday at 118 3/8, up 1/2, or 0.4%, on volume of 29.6 million shares compared with average daily volume of 27.2 million. An Intel official wasn't immediately available to comment. - Scott Eden; Dow Jones Newswires; 201-938-5253