Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Tushar Patel who wrote (140066)	7/25/2001 10:22:02 AM
From: Road Walker	Read Replies (1) \| Respond to of 186894

Tushar, I'm not an accountant. The figures I'm quoting are from operating profit and loss, does that include goodwill? Assuming it does, I'll agree the amortization of goodwill is virtually all in "other". This essentially means the companies are worth less than Intel paid, does it not? I believe that in the last analyst meeting Intel said that ~50% of R&D was "other", ~50% IAG, correct me if this is wrong. John

To: Tushar Patel who wrote (140066)	7/25/2001 2:16:28 PM
From: Noel	Read Replies (1) \| Respond to of 186894

Tushar, Good point regarding writeoff of goodwill amortization costs! It seems that it will be a drag on earnings for the next couple of years ($0.6B/quarter X 8 quarters = $4.8B) before it can be brought down to a reasonable level from $6B. I am surprised that none of the analysts saw fit to mention this. In light of this, how should Intel's earnings be viewed? I think, like Nortel and Microsoft, they should get it over with. It will make the forward earnings much better.