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

To: Jack Hartmann who wrote (172511)	1/15/2003 11:28:09 PM
From: Gary Kao	Respond to of 186894

Jack: you are a God! Thanks so very much for your efforts, Gary

To: Jack Hartmann who wrote (172511)	1/16/2003 3:54:18 PM
From: Joseph Pareti	Read Replies (2) \| Respond to of 186894

thank you so much Jack ...I must reconsider ... the thread is still alive :-) Re: 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. Does it mean that that the reduced capex (that disappointed the street, because they couldn't find anything else to be disappointed about :-) is BECAUSE the 300 mm implementation is SO good, and hence they didn't need as much as planned before? Thanks -Joe

To: Jack Hartmann who wrote (172511)	4/16/2003 5:38:27 PM
From: Jack Hartmann	Read Replies (1) \| Respond to of 186894

Conference Call Notes 4/15/03 Doug Lusk Director Investor Relations Andy Bryant Executive Vice President Paul Otellini Chief Operating Officer Rev 6.75B EPS 14 tenths Andy Bryant - Operating results as a whole consistent with guidance given in Jan and March. - Microprocessor sales stronger than we expect - Flash memory sales weaker than expected - GM exceeded forecast due unexpected circumstance. Will not reoccur. - 6.75B rev down 6% for the q, in line with historical pattern and flat y2y - Microprocessor unit shipment were lower than q4 as well motherboards, flash memory, and ethernet connectivity products - Chipsets sales were flat - 5.8B for INTC arch chipset/motherboard on the high end, flat y2y, down 3% q2q - Decline in flash memory rev drove 29% q2q decline in rev to 473M due decline in wireless communication business, 3% y2y up - Sales fells as customer adjusted inventories for price increases - 503M for network down 8% q2q and 3% y2y - GM 52.0% higher were due to unanticipated events vs 51.6 q4, and 51.3 2002q1 - Sold some chipsets inventories that were previously reserve and costs in startup costs were lower. GM higher than expect - 1.4 oper inc down 5% q2q and up 6%y2y - all profits from intc arch biz 1.9B own down 4% q2q up 6% - 140M losses in network group 94M for wireless - 2.0B in R&D - workforce 792000, flat q2q - Int inc loss/stocks of 75M more high than expected, 127M in loss of equities investment - Net 915M down 13% q2q down 2 y2y - Included 155M litigation settlement which affected EPS 1.5cents - 0.14 EPS flat y2y and up 1 cent q2q - Shares out is 6.6B, repurchase 63M at cost of 1B - Cash 12.2B slight decrease slightly q2q Outlook for second quarter - rev 6.4-6.7M or 6% y2y or lower than 2q - GM 50 +/- 2 pt - higher startup costs, 3 pts higherthan 2002 - 2.0-2.1B in spending - 20M in loss from investment - 1.2B in depreciation - Quarter of solid financial performance Paul - Strong shipments of mobile products - Microprocessror slightly higher - Japan was higher as expect, US/Asia lower - Europe up 5% y2y due to russia, seeing corp PC upgrades - US down 11%, seeing shift to asian manufacturers, notebooks and processors goin to aisa for assembly - Asia up 7% not 39% of total rev - strong india and china. - Mobile growth outpaces PC growth - Centrino launch was success and initial shipment s was 100K+ - will ship 1M centino by end of year - 50 wifi agreements and 10K location for centrinos - 19nm DOUBAN? Is progress to 2H introduction - Desktops down - 875P chipset launched which can double networking bandwidth - Springdale chipset is corp = of 875B and will be new platform for desktop - Prescott will 90nm technology next gen processor - Celeron is equal to best products out now for value chips - Launch two new xenon processor above 3Ghz - new Itanium products. Madsion will drop into products mid year. 30% boost in performance - Deerfield will be lower product itanium product for dp workstations - Flash drop was to lost in cell phone drop and increase of our price. We lost share in this segment due to ASP increasing. We are going to regain market share and maintain flash leadership. - Launched a 10Gbt ethernet card for servers, new 10Gbt ethernet controllers - X scale products gaining Q&A - Mark Edelsone MS - GM? A - Inventory was recaptured, happened to large extent. Startup cost lower from operations. Q - will performance continue A - been pleased, GM 50% and any volume will be good Adam Harken - Sanford Berstein - GM were lower than expected starup costs? A - ask mfr guys to push out costs. March was the biggest quarter for costs. We have 2B throughout world. Once written off, hard to write back in Q- Overconfident? A - Manufacturing side came in two quarters in a row up on the high end. Not seeing inventory build, not a recovery but we feel more confident. We see the world effect, mobile is strong, see worldwide effect on channel. Don’t want to over sell it. Chris Stanley - GM for year A - 51 +/1 2 April? War? Sars? A - Hard to answer. Not sure if it effected in what are seeing. Nothing dramatic is being seen. Joe Osha ML - Xbox ASP, centrino ramp effect A- Xbox is going to be lower due seasonality. A small part of our shipment. Encourage by 1q results on centrino. Long term trend to going to notebooks. We have not begun to touch sweet spot on Centrino. Expect volume to pick up during the year DRKW - Some positive buyers in PC Market? A - I don’t want to declare a recovery. Slight encouragement that processors are high end for 2 q in a row vs. 2 years at low end. UBSW - Mix of mobile vs. desktop A - In most emerging markets, the growth is desktops. Corporate purchase is a higher 5 of notebooks and availability of disposible income and practice of going portable. Trying to addreen notebook screen costs. 35-40% notebook mix. Rbcaptial - Centrino mix? A - We exit to exit the FY with most shipments being Centrino. Pentium products with convert then. Blinkequity - SARS impact longer range since sales meetings cancelled? A - We stopped conventions due to request of local govt and concern for safety all involved. Still in contact with customers. We can talk and train dealers online too. No interruption. Shipping is not a problem. Employees in HK all have notebooks so worked at home there during a floor cleanup that lasted a week. Flash? A- move to higher density phones inevitable. In hindsight the liquidity was not there. Looking at lower density more aggressivly and lower pricing. MS capital - Ymac Inc? A - We are excited about it. Is an option to Centrino. Try not to ship before IEEE std are endorsed. Watch the space. Soundview - Centrino and notebooks ASP vs. P3 mobile. A - Hard to answer. Centrino is top of the line. Has graphics. Rev per notebook will be up overtime. Deutche Bank - Guiding for -1% rev? Seasonality? Centrino? A - Not sure how is a result of Centrino since in its 2nd q of production. We have presence 10K hotspots across the world with notebooks. I think it will be difficult to sell a notebook that doesn’t have wireless going in it. It changes the use model for computing. Last time it happened was the Pentium II in the internet boom. It is that major of a shift. Flash Pricing? A - Customer rev was down stringer than we expected and we have an obligation to address it. We will do what it will take. Not going to specify A, B, C, D. Tanaka Capital.- Launch cost for Centrino? A - We will ship more Centrino this quarter. Cost is implicit in pricing. Margins on Mobile? A - a tad higher going forward. BOA - Gaining flash share back timetable? A - It will take time not overnight. We dug ourself a hole and need to get out. Europe trend? A - Significant enough to point out. Not quite a trend yet. GS - andrew root - Flash - Stratoflex flash? A - We believe our tech is better than Faisals(?) Good product quality and hoigher density. Trying to getting into phones and PDAs. Chipset impact? A - 875P has same stable image. So same software load for IT managers. CC cuts out for last question so I could not hear it. ************** At first I was negative hearing it, but the Centrino and the notebook impact is a major shift. No Capex questions. Some analysts passed on questions. i would have like to follow up on issues from last CC. Oh well. No positions in INTC yet as of the moment. Jack