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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: William Griffin who wrote (37371)	9/21/2000 6:30:27 PM
From: William Griffin	Read Replies (1) \| Respond to of 70976

Intel warning not the end of the world. I guess two weeks means a lot to an intel. :( Intel Blames Weak European Demand For 3Q Shortfall By DONNA FUSCALDO Of DOW JONES NEWSWIRES NEW YORK -- Intel Corp.'s (INTC) warning after the close of trading Thursday that revenue would fall below expectations in the third quarter shocked Wall Street, sending its shares plummeting 18% in after hours trading. As reported Intel said it expects third quarter revenue to be below previous expectations primarily because of weaker demand in Europe. Intel said it expects to report third quarter revenue 3% to 5% higher than second quarter revenue of $8.3 billion. Analysts had expected sequential growth of 8% to 12%. That would put revenue between $8.55 billion and $8.72 billion compared with estimates of more than $9 billion. Intel spokesman Tom Beermann said that demand in Europe was not as strong as anticipated the last time Intel gave guidance, which was in July when it reported second quarter earnings. Beermann said Intel was anticipating stronger revenue out of Europe and will provide further details on October 17, when the company reports third quarter earnings. Charles Boucher, an analyst at Bear Stearns said he was surprised that revenue would come in weaker than expected. "We had seen positive indications in the recent weeks, " he said. He had estimated that earnings would come in at 42 cents a share on revenue of $9.15 billion. Boucher noted that the revenue warning will impact earnings per share by three cents. Boucher said that void of any more details, it is hard to determine if this is a third quarter issue or if it will carry over into the fourth quarter. "Its too early to make a decision, we need to get more details to the cause of the problem, it magnitude and whether it goes a way quickly or not. Jack Geraghty, an analyst at Gerard Klauer Mattison said that Intel's warning sounds like Europe didn't pick up in time. "I don't think Europe is going down the tubes," said the analyst. "I don't think this is a major disaster." Geraghty said its an issue of timing. "If Europe would have picked up two weeks ago we wouldn't have this," he said. Although Geraghty said he was surprised by the warning, he did note that the the third quarter is very back-end loaded. A little less than 50% of the business can be done in the third month of the quarter and this is an issue of demand picking up in the middle of September rather than the beginning of September. Geraghty estimates revenue to come in close to $9 billion. In furious after hours trading Intel was trading off about 18% at $50, down from its close of $61.48 in the regular session, according to Instinet,