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

To: Dan3 who wrote (124865)	1/14/2001 3:29:55 AM
From: semiconeng	Read Replies (1) \| Respond to of 186894

It's been explicitly and literally discussed during question and answer sessions at AMD's quarterly conference calls. Listen to some of AMDs conference calls. The question comes up because AMD doesn't recognize sales to distributors until the parts have shipped to enduser. One of the reasons for this is that the distributors pay the current price at the time they sell to endusers, not the price current when they received their inventory. --- I must admit that I was wrong. AMD does offer price protection as stated here: amd.com "Revenue Recognition. The Company recognizes revenue from product sold direct to customers when the contract is in place, the price is fixed or determinable, shipment is made and collectibility is reasonably assured. The Company sells to distributors under terms allowing the distributors certain rights of return and price protection on unsold merchandise held by them. The distributor agreements, which may be canceled by either party upon specified notice, generally contain a provision for the return of the Company's products in the event the agreement with the distributor is terminated. Accordingly, the Company defers recognition of revenue and related profits from sales to distributors with agreements that have the aforementioned terms until the merchandise is resold by the distributors. Intel has been less forthcoming about similar policies, but the consensus I've seen (and that's all there is to go on) is that any such program from intel is much more limited - largely because they didn't need to offer one. ---Not so Kemosabe'... There's quite a bit more information available than "consensus". You got me to wondering exactly what intel's policy was. Guess what I found on intel's site: intel.com Revenue recognition. The company generally recognizes net revenues upon the transfer of title. However, certain of the company's sales are made to distributors under agreements allowing price protection and/or right of return on merchandise unsold by the distributors. Because of frequent sales price reductions and rapid technological obsolescence in the industry, Intel defers recognition of revenues on shipments to distributors until the merchandise is sold by the distributors. Hummmm.... Looks like the same "Price Protection" to me. Thank you so much for making me realize, that intel has the same price protection AMD has. :-) Semi