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

To: Alighieri who wrote (126463)	10/18/2000 6:42:24 PM
From: tejek	Read Replies (1) \| Respond to of 1583671

The bottom line: AMD has to do twice as well as Intel to get half the benefit of the doubt. Al, Why? ted

To: Alighieri who wrote (126463)	10/18/2000 7:00:59 PM
From: Alighieri	Respond to of 1583671

Ted, here's a penultimate article, supporting my belief... Al ============================================================ Intel Beats Lowered Expectations By CLIFF EDWARDS, AP Technology Writer SAN JOSE, Calif. (AP) - Semiconductor manufacturer Intel Corp. beat Wall Street's lowered expectations for its third-quarter earnings. For the three months ended Sept. 30, net income rose to $2.51 billion, or 36 cents a share, compared to $1.46 billion, or 21 cents a share in the year-ago period. Excluding acquisition-related costs, the company earned $2.9 billion, or 41 cents a share, up from a split-adjusted 28 cents a share a year ago. After Intel warned last month that third-quarter revenues would fall short of expectations, Wall Street revised estimates downward to 38 cents a share, according to a survey of analysts by First Call/Thomson Financial. Third-quarter revenues rose 19 percent to $8.7 billion from $7.3 billion a year ago. The results were reported after the regular session finished Tuesday. Shares of Intel closed Wednesday up $2.00, or 5 percent, to $38.19 on the Nasdaq Stock Market. Intel serves as a bellwether of the general health of the personal computer industry. Overall, there are signs of slower-than-expected growth, although Intel rival Advanced Micro Devices last week reported better-than-expected results. Intel is trying to diversify its business but still sees much of its revenue come from PC components. That segment has been hampered, however, by slowing worldwide sales, a change in its manufacturing process and pricing pressures. As expected, the company reported sales of microprocessors - the brains of personal computers - were flat when compared to the previous quarter. That was offset by record sales of flash memory and computer motherboards. Steve Kleynhans at industry research firm Meta Group said Intel has hurt itself by offering too many different processing speeds in the Pentium III family, some of which are not readily available. That has slowed the replacement of both corporate and home PCs, he said. ``A lot of end-users are starting to question just how much processing power they need - and few know how much processing power they have,'' Kleynhans said. ``This Christmas should be interesting, because you have a lot of new gizmos and gadgets competing for the same dollars as PCs.'' Intel in recent months also has been dogged by a series of missteps, which analysts blame in part on increased competition with AMD. Intel has canceled plans for its Timna processor, been dogged by reports its new Pentium 4 computer chip will be available only in very limited quantities and faced scarce supplies of much-touted high-end Pentium III chips. Even the rollout for the very high-end Itanium processor has been downgraded in recent months to ``a gradual one.'' Analyst Joseph Osha at Merrill Lynch noted there are indications of the PC demand is picking up amid seasonal personal and business computer buying, but he called the increase ``lackluster.'' ``The real challenge for Intel lies in the coming quarters as the company begins to ramp (Pentium 4),'' said Osha, who noted the larger size of the chip would pressure profit margins. The size of the chip is important because one wafer can produce only a set amount of processors, limiting availability. Intel is moving to a new manufacturing process called .13 micron that will help resolve the problem, but those plants are not expected to be fully operational until at least the middle of next year.