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

To: Gottfried who wrote (183101)	1/17/2006 5:11:15 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 186894

Message 22070171

To: Gottfried who wrote (183101)	1/18/2006 8:49:44 AM
From: Amy J	Read Replies (1) \| Respond to of 186894

"The chipmaker insists it has all but solved the supply problems that spawned a sales shortfall. Analysts are unconvinced" yahoo.businessweek.com Chipmaker Intel had a great year, but a "difficult" December. That's how Chief Financial Officer Andy Bryant characterized fourth-quarter revenue, which fell short of Intel's earlier forecast by $200 million. Bryant blamed the miss on an ongoing shortage of chipsets -- ...-- coupled with weakness in PC sales, particularly in the Americas. The chipset-supply issue, which Intel first described in its midquarter update in December, reportedly has led to lost microprocessor business among some PC makers. "MISMANAGEMENT OF FORECASTS." Intel Chief Executive Paul Otellini had hoped to fill the gap with third-party chipsets from vendors like ATI (ATYT ), Via Technologies, and SIS. But when those chipsets didn't materialize, PC makers were left holding the bag -- with an expensive stockpile of PC microprocessor chips they couldn't use. "STAY ON THE SIDELINES." Bryant portrayed the chipset problem as nearly solved. "We believe that we have enough now to meet everybody's needs in the first quarter," he said. "We still believe it will take a while to get all the supply lines working." San Francisco-based Needham & Co. analyst Charlie Glavin, who first identified the chipset issue in September, says even he was surprised. "I was floored by how bad it was," Glavin says. "I don't think it's realistic to expect that this is going to work itself out by the second quarter. MISSED TARGETS. The news caught other analysts by surprise as well. . . . The chipmaker's dour revelations stood in contrast to the hoopla of a week earlier, when Apple (AAPL ) wowed investors with new computers sporting Intel chips (see BW Online, 1/10/06, "Apple's iPod, Intel Revelations"). . . . If only Intel could get the chips to its demanding PC-making customers on schedule. -------------------------------------------------------------------------------- Hesseldahl is a writer for BusinessWeek Online in New York

To: Gottfried who wrote (183101)	1/18/2006 10:57:41 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 186894

Intel Likely To See Additional Downside To Estimates David Ng, 01.18.06, 10:39 AM ET J.P. Morgan analyst Christopher Danley offered a downbeat outlook for Intel following the company's fourth-quarter miss. "We continue to believe additional downside to estimates is likely due to a continued inventory correction and excess processor capacity in 2006," Danley wrote in a research note. The analyst reduced his calendar 2006 earnings-per-share estimate to $1.37 on revenue of $39.5 billion from $1.59 on revenue of $42.8 billion. He introduced calendar 2007 estimates of $1.52 per share on revenue of $43.0 billion. Danley characterized Intel's 2006 revenue guidance in a range of $9.1 billion to $9.7 billion as "below seasonal." He said Intel (nasdaq: INTC - news - people ) is being cautious due to excess customer inventory and a fourth-quarter market share loss to Advanced Micro Devices (nyse: AMD - news - people ). He added that Intel's yearly revenue outlook is "too aggressive" and expects first-quarter Taiwan results to fall below the seasonal average. For the fourth quarter, Intel reported earnings per share of 40 cents, which was 3 cents below the consensus estimate due to lower-than-expected gross margins and revenue. The research analyst reiterated a "neutral" rating on Intel.