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


To: Monica Detwiler who wrote (164238)4/19/2002 7:20:58 AM
From: Dan3  Read Replies (2) | Respond to of 186894
 
Re:the last time Intel included all of its costs in its profit calculations?
Two days ago - on Tuesday.


Intel has long excluded the costs of its acquisitions from its costs. While many of these acquisitions have simply been money thrown away - paying hundreds of millions for dot bomb companies, several have directly supported the IAG business.

When Intel found itself unable to make a functional MP chipset, it had to start buying chipset technology, by buying companies like corrollary. AMD developed its own dual processor and forthcoming multiprocessor technology, and accounts for those development costs in its earnings statements. Intel can't design working components and has to buy the technology from others, then leaves those costs out of their cost accounts calling them "one time acquisition costs."

What's next from Intel, leaving out payroll costs since paying wages any given month is a one time event?

I guess you could say that AMD sometimes does the same thing, though, AMD bought Alchemy to compete with the ARM business that Intel bought from DEC. But Intel does a lot more of it, and Intel does it in its core business as well as in acquisitions for expanding into new markets.