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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: steve harris who wrote (116734)	6/20/2000 5:16:00 PM
From: tejek	Read Replies (4) \| Respond to of 1573827

Tuesday June 20, 4:16 pm Eastern Time Company Press Release Q2 Interest and Other Income Expected to be Approximately $2.3 Billion Charge be Taken in Q2 for Estimated MTH Motherboard Replacement Costs to be Approximately $200 Million SANTA CLARA, Calif.--(BUSINESS WIRE)--June 20, 2000--Intel announced today that it expects interest and other income for the second quarter to be approximately $2.3 billion, up from previous guidance of $725 million, primarily due to higher than expected realized gains on the sale of equity investments. This revised estimate depends on equity market levels and volatility, the realization of expected gains on investments, including gains on investments acquired by third parties, and assuming no unanticipated items. Lordie, who would have thought! I guess Intel will be making its report this quarter. But I'm confused....which sector is Intel in....chips or venture capital? If its still chips, will it switch to venture capital when more revenue comes from stock trading than the sale of chips? I wonder if Engel would know? ted

To: steve harris who wrote (116734)	6/20/2000 6:23:00 PM
From: Goutam	Read Replies (3) \| Respond to of 1573827

Steve, < Intel announced today that it expects interest and other income for the second quarter to be approximately $2.3 billion, up from previous guidance of $725 million, primarily due to higher than expected realized gains on the sale of equity investments. > Ramp is fine ... ... Demand is great ... ... supply is tight ... ... Higher than expected realized gains. Great spin. Just my $0.01 + $0.02 ;>) Goutama

To: steve harris who wrote (116734)	6/20/2000 7:25:00 PM
From: Petz	Read Replies (2) \| Respond to of 1573827

WOW, the additional capital gains Intel is taking amounts to 0.45/share pre-tax and 0.38 after tax. At the end of Q1 Intel had equity investments with a market value of 9.8 billion. Therefore Intel must have already sold over a 1/4 of their strategic investments in the last 2 1/2 months. In fact, if their cost basis is 50% of the sale price, they sold HALF of the investments! Looking up the Q1 financial report, I just noticed that Intel reports earnings using a very low tax rate, for a profitable firm, of 18%. (AMD announced that they will use a 31% tax rate once tax loss credits are exhausted.) The explanation for this is that Intel only pays taxes on its REAL earnings not on the bogus earnings obtained by ignoring acquisition costs and the like. How much you wanna bet that the Yahoo earnings estimate concensus does NOT rise from $0.71 to $1.09 in the next two weeks? Petz