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

To: herb will who wrote (133711)	4/30/2001 12:59:36 PM
From: pgerassi	Read Replies (3) \| Respond to of 186894

Dear Herb: All auditors do is validate that the numbers are correct and verifiable. They are taxed as if they are making 7 cents, and not 16 cents. The government does not care as it is to their benefit. The institutions hope that they can get back to being a profit machine, or that they can get out before it becomes apparent that the jig is up. Perhaps Intel will have to keep the plants open and keep the antiquated equipment because they would take to large a hit when sold or junked. BTW, auditors have been fooled in the past, just look at the times surprise losses and the successful lawsuits. Pete

To: herb will who wrote (133711)	4/30/2001 1:25:59 PM
From: brushwud	Read Replies (3) \| Respond to of 186894

pgerassi, "Excluding acquisition costs but not revenue is a big POS! Not depreciating Plant and Equipment," Well I guess Ernst & Young LLP, independent auditors must be in cahoots with Intel management because I am looking at their unqualified opinion... Excluding acquisition costs is not a Generally Accepted Accounting Principle and not what the auditors signed off on and taxmen want to see, but that's the way Intel always frames its financial PRs. But I think he is incorrect to say Intel is "Not depreciating Plant and Equipment". This Q, Intel's favorite "EPS" (excluding acquisition costs) is being guided towards a dime, which means true EPS will probably be close to zero. Also, there will be the one-time charge for employee stock options repriced this month, additional one-time in-process R & D writeoffs for the acquisitions this month, and the non-hiring bonuses being paid to potential employees for not accepting their pending offers! Bottom line: INTC's Q2 EPS will be negative and they will pay zero income tax. They will guide analysts towards the non-GAAP dime, and then try to pump their 2H prospects in the conference call after reporting true EPS in the red.