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

To: Tony Viola who wrote (143013)	9/6/2001 9:28:35 PM
From: denni	Respond to of 186894

>>I thought it was your turn. ;-) good job! interactive2.wsj.com Intel Reaffirms 3rd-Quarter Hopes, Expects Sales at Bottom of Range By DON CLARK Staff Reporter of THE WALL STREET JOURNAL Intel Corp. said third-quarter sales will be in the lower half of a range that it set in July, but didn't issue the more-pessimistic prediction that some analysts feared. By indicating that sales are tracking close to previously reduced forecasts, the bellwether maker of computer chips provided a mild antidote to a litany of negative pronouncements from the technology industry lately. Intel didn't set a precise forecast for net income. That was enough to send Intel's shares up to $26.75 in after-market trading after having fallen 5%, or $1.37, to $26.10 in 4 p.m. trading on the Nasdaq Stock Market Thursday before the announcement. Intel, afflicted in recent quarters by slumping personal-computer demand and a price war with Advanced Micro Devices Inc., said revenue for the period ending Sept. 29 will be "slightly below the midpoint" of its previous forecast of between $6.2 billion and $6.8 billion. Some analysts had expected Intel to set a new, lower range, amid signs that back-to-school sales of computers are tepid and economic conditions sour in more parts of the world. But the company indicated Thursday that its flagship business in microprocessor chips continues to follow seasonal patterns, which usually include some growth in the second half of the year. Intel also said its other communications and flash-memory-chip lines are holding to earlier expectations of flat growth. Andy Bryant, Intel's chief financial officer, added during a conference call that the company is seeing positive impacts from a combination of price reductions and new models of its Pentium 4 and related accessory chips. "Demand is solid" for those products, Mr. Bryant said. Intel lowered its projection for quarterly expenses slightly, to a range of $2 billion to $2.1 billion from the prior range of $2.1 billion to $2.2 billion. It said its gross profit margin should also be slightly below the midpoint of its expectations in July, which it then described as 47% "plus or minus a couple of points." Analysts Expect Intel to Lower Hopes as Computer Industry Continues Slide (Sept. 4) Intel Unveils Faster Microprocessor Chip, Pushing Rival AMD to Cut Prices Again (Aug. 28) Intel Will Cut Chip Prices up to 54%, Accelerate Push for Faster Processors (Aug. 22) On a negative note, Intel added that it expects to lose $90 million from equity investments and interest -- far worse than its previous estimate of no earnings from those activities -- because it took in less than expected from selling equities. But the Santa Clara, Calif., company also said it expects to reduce its third-quarter tax provision by $100 million. The company's shares fared better than that of electronics company Motorola Inc., whose shares tumbled by 15% after it reduced its revenue forecast for the third quarter and announced further job cuts (see article). Meanwhile, National Semiconductor Corp. also announced a $54.6 million loss for its fiscal first quarter, though it indicated an improvement in orders (see article). Both of those companies are closely tied to the market for cellular phones. So is Intel's business in flash memory chips, which are popular for portable products because they can retain data when power is switched off. Mr. Bryant said Intel had seen some signs that component inventories at cellphone makers had begun to approach normal levels, a positive sign for that business. But many analysts were more fixated on Intel's comments regarding its microprocessor business, which reflects demand for PCs. In response to one analyst question on the topic, Mr. Bryant said "July was better than I expected and August was better than I expected." Mr. Bryant also indicated that the company was reducing head count and some operating expenses at a faster rate than expected. Intel has said it plans to reduce its work force by 5,000 jobs. But Intel's rapid price reductions also are affecting its profit margin. The company, moving to trump rival AMD, last week released a Pentium 4 model operating at a speed of two gigahertz, and cut prices on older models as much as 50%.