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

To: BelowTheCrowd who wrote (170652)	9/5/2002 10:13:42 PM
From: L. Adam Latham	Read Replies (1) \| Respond to of 186894

Michael: Re: Since GAAP rules changed, comparing this year's GAAP results to last years is an apples-to-oranges comparison. That's crazy. In this environment, GAAP earnings are the only numbers that should be looked at - pro forma earnings are a thing of the past, and nobody should be relying on them anymore. Intel's investment in newer manufacturing equipment and processes is paying off bigtime in increased plant efficiencies, as was clearly mentioned in the update today. When revenues start increasing again (and they eventually will), the GM percentages will be phenomenal, as will the YOY earnings gains. Intel reiterated that Q3 and 2002 GM percentages will be 51% +/- few points. Now, the first half GM % was 49.2%, and if Q3 comes in at 51%, that means Q4 will have to be close to 55%. They know how the math works, so even though they didn't specifically address Q4, they did so quietly with their GM % guidance. Adam