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

To: Joseph Pareti who wrote (172495)	1/15/2003 2:52:17 AM
From: Petz	Respond to of 186894

You certainly know times have changed when I win the Intel EPS contest: Message 18445366 and home.attbi.com Congrats to the Intel longs on a great quarter. Petz

To: Joseph Pareti who wrote (172495)	1/15/2003 3:21:40 AM
From: Jim McMannis	Read Replies (1) \| Respond to of 186894

What ever happened to Tony Viola, BTW?

To: Joseph Pareti who wrote (172495)	1/15/2003 4:02:40 PM
From: AK2004	Respond to of 186894

Joseph re: LET THIS BE MY WAKE-UP CALL FOR EVERYBODY AROUND ... people are trying to sleep here, do you mind? :-((

To: Joseph Pareti who wrote (172495)	1/15/2003 6:55:10 PM
From: Jack Hartmann	Read Replies (2) \| Respond to of 186894

Conference Call Notes 1/14/03 Andy Brynt - CFO Paul Otellini – Pres. Andy - Although challenge by slow growth and difficult environment, 2002 was the year when INTC made progress on sev fronts - We did better than anticipated, despite economy, order patterns held. - Rev higher on most categories, microprocessors, motherboard, flash memory, and chipset - 7.2B in rev - 10% q2q rev growth and 3% y2y growth - The largest rev was INTC architecture or 8.9B or 83% of rev for q - Wireless/flash rev was 662M and up 13% q2q and 28%y2y - Network rev 544M, down 8% y2y - GM 51.6% or 3.7B up 3%, most improvement due to higher volume and prod mix - Oper inc 1.6B up 46%q2q and flat y2y - 6.6B in oper inc for INTC archit - Wireless had 38M oper inc in q - EPS 16 cent - 2.1B in spending and 8.4B for the year - Headcount down 6% - Interest inc, investment loss 117M - 6.7B shares outstanding - 59M shares repurchased. - 2.3B in inventory - Cash, short term income was 12.2B - 1.2B in capex for the q - 4B in stock buyback for year Outlook for first quarter - Expect rev 6.5B-7.0B - GM should be 50%+/- 2pt% - 2.0-2.2B in spending - We anticipate will be driven by pace of recovery in industry and economy - GM should be 51% for the year - Expect 300mm wafer to increase. - We plan to absorb no attrition in workforce - R&D will 4.0B and same as 2002 – most adv fab and micro - 3.7B in capex - 300mm fab will see most spending, 1B less than on 200m process - New office buildings are on hold - Half of of capex is 300mm fab expense - Continue to shift focus to 300mm area - 90nm goes from 50% to 90% of capex - 75% to 90% of capex in 300mm vs. 200m - It is challengeing to create shareholder value in no growth economy. - 16 years of profitability - DSO 34-37 days - Bad debt was less than 5M - Inventory was lower - Cash increased 1B y2y - Debt is 4% of equity - RoI is one of the highest in industry. - We can’t control the economic environment but we are in position when it turns Paul - Saw growth in all areas - We grew faster than the market - Saw market share gains in microprocessor, gigaethernet, chipsets, and pda - Europe was good esc Russia - 2.7B in rev from asia - sales in North America was up slightly - Japan up in revs - Japanese phone mfr using flash mem for video, and smart phones was main reason - Intel arch business solid, motherboards shipped at record volume. - Inventories in target goals - 3G Pent 4 chip shipped with hyperthreading, - Mobile microprocessor better than anticipated - In Sept Vanium microprocessor called Vandias will debut in March? - We are seing big demand in wireless computing upcoming - Itanium 2 processor set new records - Itanium 3 will debut in mid 2003 - Flash memory volume highest in 8 quarters - DELL announced a new pda line - INTC communication saw good growth in gigabit Ethernet - 802.11 investment in Comeda will increase. - 2002 was a tough year in our industry. - Gained market segment share in most areas Q&A Mark Edelstone – MS Q: How much q2q growth in microproscer, non xbox. A: PC and server based microprocessors was most growth and 10% q2q. Eight quarters was prior rec in microprocessors shipments Joe Osha – ML Q: Centrino platform? A: Include microcessors formerly know as Vandias, chipset codename Odom which has an 802.11 chipset. Gigabit Ethernet not part of platform. John Joseph – SSB Q: GM 51%? A: 2 years of flat revs, Margins went from 49% to 50% to 51%. We are trying manage cautiously. Q: Capex is reduced. 300mm efficiencies? A: Yes. We see 300mm cost efficiencies, We need to see unit growth to realize more savings. Variable is rev growth and fab use. When recover comes we will be ready. The question is when does the market return. DKW secuties – What you expect nearterm? A: This was a record quarter in microprocessors shipments for notebooks, PC and desktops. Seasonal outlook should be down q2q since 9/10 quarters showed this trend for q1. Dan Niles – Lehman congrats. Corporate demand environment. A: We characterize coporates purchase as antedotal, no pattern. There are some points of lights. It is aging and it is approaching a point where machines have to be retired from a cost and productivity basis. People are moving to Pentium vs. Celeron. Grant Tanake – Grant Capital – mobile processors and Asia breaking out? A: Asia breaking out all year. Clear positive sign of growth. Not see it abating. Offshore manufacting is shifting to China. Not see it slow down. Mobile growth is moving in both coporate and consumer segments albeit slowly. Centrrino platform taps in mobile and wireless and those will be hot spots. It depends on how easy it is to connect to various access points throughout the world in a seamless fashion. Tom Thornhill – UBS Warburg – Why loss in the WCCG flash segment? A: WCCG was underutilize capacity and limited demand. We stopped production in older flash memory products. Going forward, I hope we can do better than that. Flash group is usually hit hardest in the first quarter. We see cell phones, pda, and color screen pickups in 2003. We will continue to invest in the wireless communication business. Those business have good futures. Adam Parker – Sanfrod Bernstein – ASP up? A: ASP were up in microcessors. We see it down a little in Q1 due to seasonality. Underutilization costs are better in q1 and more startup costs offset it. Q: Advertising strategy? A: Two levels of advetising. Intel Inside is one. It is one of the most benefical. We will be advertising Centrino and the move to wireless notebooks. Scott Randall – Soundview – Barter move? A; Barter move didn’t change. Inventory in channel is nothing large. Charles Dushea – Bear Stearns – GM guidance. A: 51% assumes seasonality. The economy can change dramatically during the year. We are not pulling back on the gigahertz thottle toward 90nm area. That is the key to higher clock frequency. We add hyperthreading to increase speed. Q: Demand in white box market? A: Strongest sales out in 11 quarters. Largest share is into white box market. Most sales in unbranded systems in Asia market. Han Moselman – Prudential – tool portion of capex. A: Fab equipment is half of capex. Vantium is a new core and some of Pentium 3/4 in terms of architecture, low power and a high performance environment. Ken Mayand – CSFB Flash enviroment? A: Increase in price was little higher. Leading edge flash will be in tight supply. Q: Notebook in 2003? A: All the corporates notebooks are thin and light. Retail will follow soon. Dave Woo – Webbrush Morgan – portfolio writedown? A: Hard to forecast since these is private portfolio. Best guess of events that have occurred. We have written down substantial portion but could have more. In mobile we move to Vanium in March 2003, we believe it is a strong design and has several design wins. ********** One listen only so some mistakes may be found. I own AMAT and wanted to hear the Capex news and how AMAT and others was going to be affected. Jack