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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: niceguy767 who wrote (59680)	10/22/2001 9:34:08 PM
From: ptanner	Read Replies (2) \| Respond to of 275872

Niceguy, Re: Intel's Goodwill You wrote: "It'd be interesting to know what comprises the goodwill and what a conservative valuation would peg goodwill at...(It's not wholly improbable that INTC might need to write off $2 or $3 billion in goodwill over the next while and it is not improbable that long term investment contributions might be finished for a while...tough year shaping up particularly if the P4 doesn't fly)...It almost defies any belief system that INTC goodwill could rationally increase by $5.4 billion in the worst downturn in semi history" I think this topic is a dead horse. Intel made a lot of acquisitions over the least few years (prior to the recent semi downturn) to expand its presence in the communications sector. While it is possible that some of these assets are over-valued at present, I believe that Intel is acting in accordance with common accounting standards in this area. The nearly 10.75% drop in goodwill during the most recent quarter was far more substantial than what I believe the normal depreciation rate would be (30? 40 years?) so it seems there was some "mark to market" adjustment. [Disclaimer: I didn't study Intel's earnings press release or the CC nor do I try to follow the arcane lore of financial accountability.] Even if Intel were to write the whole thing off as a one-time charge (a la Nortel and others after their aggressive acquisitions and subsequent comms crash) it is still only accounting entries and relatively modest compared to the goodwill "held" by other companies. You also wrote: "From q1/99 to q3/01, INTC's goodwill has increased by $5.4 billion and long term investments have declined by $2.5 billion" It may also be appropriate to note that the value of "Property, plant and equipment, net" increased by nearly $7B and shareholder equity by more than $11B over the same time period. Please stop beating this dead horse. -PT

To: niceguy767 who wrote (59680)	10/22/2001 10:23:07 PM
From: TGPTNDR	Read Replies (3) \| Respond to of 275872

NG, I'm looking for info on post by PE re AMD 3Q earnings to be around -$100m. Do you remember such a post? Tony seems to think there was one. On the subject of goodwill: AFAIK, it's only created by purchase of assets(normally another company?) for more than book value. One can go through the news releases and find out where the Goodwill came from. The INTC spreadsheets and quarterly reports (available at intel.com -- ) indicate big increases in goodwill as follows: 3Q'99 $3B -- Bought Dialogic Corporation, Level One Communications, Softcom Microsystems, and NetBoost Corporation. 4Q'99 $1.8B -- Bought DSP Communications, IPivot, Parity Software Development corp. and Telecom Component Products Division of Stanford Telecommunications 1Q'00 $1B -- GIGA A/S, Ambient Technologies, Inc. and Thinkit Technologies, Inc., closed during the quarter and two, Basis Communications Corporation and Voice Technologies Group, Inc., were still pending. Descriptions of these companies include lots of words like 'Internet', 'Network Access', 'DSL', 'Fiber Optic', etc. There should be a lot of 'Tax Savings' available in that pot. The rules on goodwill changed this year & I think it's supposed to be marked to market by 1Q02 though I'm not at all certain of that. I'd like to hear a real explanation of goodwill if we have an expert on the subject around. tgptndr