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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (8419)	11/27/2001 2:57:30 PM
From: puborectalis	Read Replies (1) \| Respond to of 99280

Intel holds steady on revenue forecast By Reuters November 27, 2001, 11:25 a.m. PT SCOTTSDALE, Ariz.--Management at Intel is increasingly confident of meeting its forecast for fourth-quarter revenue, Chief Financial Officer Andy Bryant said Tuesday. Speaking after his talk at a technology conference hosted by Credit Suisse First Boston, Bryant said management was "getting more and more comfortable every day" with Intel's projection of revenue of between $6.2 billion and $6.8 billion in the current quarter, ending December 31. Wall Street analysts on average forecast revenue $6.56 billion, according to First Call. "Clearly, Sept. 11 and all the events surrounding that make forecasting a little more difficult," Bryant said. Intel, along with the rest of the semiconductor industry, has suffered a bruising year of plunging sales and profits as the $200 billion industry faced its worst-ever downturn in 2001. The company has a 78 percent share of the market for microprocessors, the primary computing engines of personal computers, and about 80 percent of its revenue comes from the sale of microprocessors, chipsets and motherboards. Global chip sales are forecast to tumble 31 percent this year, from some $200 billion in 2000, but rebound slightly in 2002, notching a modest gain of 6 percent, then gaining steadily in the following two years. The Santa Clara, Calif.-based company reported third-quarter profits before acquisition-related costs that tumbled 77 percent to $655 million, or 10 cents a share. That was down from $2.89 billion, or 41 cents, a year ago, before 5 cents a share in acquisition-related costs. Sales fell 25 percent, to $6.55 billion from $8.73 billion. Bryant said Intel's internal spending on information technology in 2002 would be at about the same level as 2001, but the company would focus its spending on personal computer upgrades as opposed to network improvements. "The mix will change dramatically. We cut back on desktop improvements last year. We really slammed the door on PC spending," Bryant said. "The place where we will under-invest (next year) is the basic network." Story Copyright © 2001 Reuters Limited. All rights reserved.