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

To: L. Adam Latham who wrote (137665)	6/20/2001 7:24:16 AM
From: Road Walker	Read Replies (2) \| Respond to of 186894

Adam, re: Because of frequent sales price reductions and rapid technological obsolescence in the industry, Intel defers recognition of revenues on shipments to distributors until the distributors sell the merchandise." That pretty much shoots down any credibility to Osha's stuffing the channel claims. If Intel can't recognize the revenue, they can't recognize the earnings, until the product is sold. The product remains in Intel inventory, from a financial reporting point of view, with no earnings reporting benefit. re: "The company generally recognizes net revenues upon the transfer of title." Standard business practice for the OEM's, assuming FOB factory, that's when the product ships; assuming FOB destination, when it arrives at the OEM. In a JIT and turns environment, it would be near impossible for Intel to overstock the OEM's. Osha's probably looking at distributors building inventory for the back to school sales period, and joining Albert in paranoid fantasies. John