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

To: Kealoha who wrote (37450)	10/24/1997 7:35:00 AM
From: Glenn D. Rudolph	Respond to of 186894

INTC: FURMAN SELZ decreased estimate for fiscal year ending 12/97 from $3.95 to $3.78 on 10/15/97 INTC: FURMAN SELZ decreased estimate for fiscal year ending 12/98 from $4.70 to $4.25 on 10/15/97

To: Kealoha who wrote (37450)	10/24/1997 7:47:00 AM
From: Kealoha	Read Replies (1) \| Respond to of 186894

Check this out: Intel's Merced Chip Ripples With New Potential Intel Settling with Digital, Tightens Grip on Chip Industry RELATED STORIES Deal Frees Intel's Future Chipping Away At History From the Archives: Intel and the Patent Wars BUSINESS NEWS GET QUOTE E-mail ABCNEWS.com "Intel puts to rest the patent litigation and gets the FTC monkey off its back by providing a lifeline to the only semblance of processor competition." -Ashok Kumar, analyst at Loewenbaum & Co. A trigger: Intel and DEC lawyers have a patent- litigation hearing Thursday in U.S. District Court. (ABCNEWS.com) By Amy Olmstead ABCNEWS.com from TheStreet.com N E W Y O R K - So you think Intel is dominating the computer chip business as it knocks down 93 percent of global PC chip sales? Just wait until they mop up their little patent mess with Digital . Once its patent spat with Digital is resolved-an announcement could come within hours-Intel becomes an unfettered giant in a world of ankle-biters. "It becomes Intel and Intel," says stock analyst David Wu at ABN AMRO Chicago. "The rest don't even count. The marketplace has spoken, people want to buy Intel products." The spectacular settlement and subsequent collaboration will redefine the industry. According to early and unconfirmed reports, Digital will license its Alpha chip architecture (which contains the technologies Digital accused Intel of stealing) to Intel in exchange for a settlement valued at $1.6 billion. The settlement frees Intel to focus its energy on its next major chip, Merced. Currently being developed with Hewlett-Packard-talk about high-power collaboration-the Merced chip is based on a RISC microprocessor, the heart of high-end computers like workstations and servers-and the essence of the contested Alpha design. Release date for Merced is sometime around mid-1999. Analyst Mark Edelstone at Morgan Stanley Dean Witter believes that Intel and HP can develop the Merced chip on their own. But winning the Alpha license will clear up any legal uncertainties about the technology involved, just as it will do for the Pentium chips used in PCs, which supposedly used some Alpha technology as well. Also, there are certain to be scores of new design and performance enhancements to be plucked from Digital's blazing chip. And with this technology infringement issue behind them, Intel's chip is freed and will rule the computer world. No other company will matter. It becomes an Intel marketplace. Moreover, Intel can offer Alpha as a separate product should Merced be delayed. Intel and Digital have been in talks since Digital hit Intel with a patent infringement lawsuit last May and Intel countersued later that month. It was a surprising move because Digital, better known for its leadership position in networked computer systems and software than its chips, is a major customer of Intel and, though large, is dwarfed by Intel by any measure. Analysts believe that a $1.6 billion cash infusion to Digital from Intel is fair exchange for the Alpha license. "Any resolution would be favorable to Digital so they can focus on getting on with business," says Wu. Digital, a chip innovator at the high end, is expected to continue to develop RISC technology, along with fellow Alpha developer Sun Microsystems and Silicon Graphics, maker of the UNIX-based MIPS microprocessors. Will Digital continue to be a force in the RISC sector? "I think they'd have to be," says Edelstone. And a force with a bit more cash on hand. SECTOR NEWS High Tech Industrial Services Commodities Consumer Products International