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

To: Road Walker who wrote (140060)	7/25/2001 9:41:25 AM
From: Tushar Patel	Read Replies (2) \| Respond to of 186894

If you assume that pretty much all the amortization of goodwill and purchased in-process R&D is for acquisitions of other businesses, the non IAG loss excluding these costs for Q2 goes to ~500m instead of 1.2b. In 2001, even these have started to go up quite a lot but up until Q4 2000, the non-IAG numbers excluding these costs were not too bad (no more than losses of 200-300m range per quarter). 2001 numbers are tricky because the top line is going down due to the environment (non-IAG revs declined from 1.8B in Q4 2000 to 1.5B Q1 2001 and then again in Q2 2001 to 1.2B). Of course, having paid top dollar for these companies during the bubble, Intel will be saddled with goodwill amortization costs (which are increasing dramatically - 18m in Q1 1999 to 594m in Q2 2001) for many years to come. On the other hand, they may be able to pull a Nortel like move and write off the entire goodwill entry on the balance sheet (6B) in one go. That almost might be worth doing if they end up with a really bad (operating loss) quarter and the stock was to tumble anyway.