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

To: Paul Engel who wrote (139530)	7/18/2001 2:06:04 AM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

Here's a "positive" spin on Intel's Q2 earnings !!! newsalert.com July 17, 2001 17:31 ****Intel Misses Analysts' Estimates SANTA CLARA, CALIFORNIA, U.S.A., 2001 JUL 17 (NB) -- By Michael Bartlett, Newsbytes. Chip manufacturer Intel [NASDAQ:INTC] today blamed acquisition-related costs for its shortfall for the second quarter, after it reported earnings of 3 cents per share for the second quarter instead of analysts' estimates of 10 cents per share. Intel's revenue numbers were down sharply from a year ago. The company brought in $6.3 billion during the second quarter of 2001, down 24 percent from the same period in 2000. Quarterly revenue was 5 percent lower in the second quarter compared to the first quarter this year, Intel said. The company also reported a drop in net income during the quarter. Intel said its net income, excluding acquisition-related costs, was $854 million, down 76 percent from the second quarter a year ago and down 25 percent from the previous quarter. The company said its quarterly earnings per share would have been 12 cents if not for what it termed "acquisition-related costs." Intel said these costs included one-time write-offs of "purchased in-process research and development" and "goodwill." The company said it took $123 million in one-time charges for purchased in-process research and development and $594 million for amortization of goodwill and other acquisition-related intangibles and costs. Including acquisition-related costs, net income was $196 million, down 94 percent from last year and 60 percent from the first quarter of 2001. Intel said second quarter results in 2000 included a gain on investments of $2.1 billion, primarily from the sale of assets. In this year's second quarter, the company claimed just $3 million in investment gains. The company reported earnings per share of 45 cents in last year's second quarter. Intel today said in a press release it expects computer users to upgrade from the company's Pentium III processor to the more powerful Pentium 4 processor as they adopt Microsoft's [NASDAQ:MSFT] Windows XP operating system. The company said it expects third quarter revenues to be between $6.2 million and $6.8 billion. The quarterly earnings report was released after the close of the U.S. financial markets. Intel's stock price closed today up 77 cents, or 2.6 percent, at $29.90. Intel is at intel.com . Reported by Newsbytes.com, newsbytes.com . 16:24 CST Reposted 17:17 CST (20010717/Press Contact: Doug Lusk, Intel, 408-765-1679 /WIRES ONLINE, BUSINESS, PC/INTEL/PHOTO) INTEL CORP - INTC Price 29.90 Net Change +0.77 Volume (000) 104794 Day High 30.00 Day Low 28.08 MICROSOFT CORP - MSFT Price 71.82 Net Change +0.64 Volume (000) 31626 Day High 72.01 Day Low 70.14 as of 07/18/01 02:02 AM EDT

To: Paul Engel who wrote (139530)	7/18/2001 2:30:25 AM
From: pgerassi	Read Replies (2) \| Respond to of 186894

Dear Paul: Since you didn't blast me about real data, you can't! It just goes to show how much you are in denial about Intel's worsening situation. Guessing what I think, is a poor substitute. You are liable to be very wrong almost all of the time. I am not worried. I just think that where Intel used to talk of CPU unit sales in a quarter, they are now talking shipments. Since you need to ship before you sell and the opposite is not true, you need more than shipments to sell, you need demand. Demand must not be as good or Intel would still be talking units sold. What happened? Intel shipped more P4s than it sold? They talked of shipping 4 million P4s. But only about 2 million sold (just take the comment that twice as many sold in Q2 than in Q1 and the overall consensus was that they sold less than 1 million in Q1) leaving 2 million shipped without being sold (if they stayed to their schedule). I assume that by the middle of Q2, they noticed this and cut prices by 50%. Even so, only a small additional sold of about 1 million. A cut in P3 production of 1 million and a slowdown in the P4 ramp to 3 million this quarter yields the increase of 1 million shipped, but no gain in sales (as in the Mercury numbers of WW CPU sales)(this might be a gain only to the US (gain of 6%) but, less than that overall). AMD reported sales of 7.7 million units where Intel did not report any unit sales figures but, according to Mercury and all other accounts, Intel sales were flat at about 27 million. This fits all of the facts by both sides and third party numbers. This looks like Q3 may be less rosy for Intel than AMD. If AMD's assumptions (called conservative or pessimistic) are correct, disaster for Intel looms. OTOH, if Intel's assumptions (called rosy or optomistic) are correct, AMD will be a stellar performer. Pete