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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Yogi - Paul who wrote (2239)	1/13/1998 5:16:00 PM
From: Pierre-X	Respond to of 9256

Re: Intel 4Q Touche. <g> First, to mention that INTC reported 59% gross margins => the reason I am an Intel bull, long term. Earnings per share in the fourth quarter were $0.98, down from $1.06 in the final quarter of 1996. They are feeling the impact of changes in PC demand structure. People may celebrate vis-a-vis the consensus estimate, but the fact of the matter is that the CPU business is in a down cycle. Fortunately a down cycle for Intel means a merely massive profits as opposed to grotesquely obscene profits. Q4 revenues were up significantly in Europe from Q3, the result of seasonally strong demand there. Q4 revenues in the Americas were flat with Q3, revenues in both Asia-Pacific and Japan were down. Some of the damage from Asia and the US was luckily offset by a pickup in European demand, which appears to be cycling up. Hard disk investors can tell you stories about the double edged nature of "seasonally strong demand." The decline in gross margin percentage was primarily due to a less favorable product mix... The real culprit. I don't think buyers are gobbling up those PIIs quite according to the master plan. Intel's net cash position ... at the end of Q4 was approximately $11.0 billion. Hoowah. Someday, my company will casually mention something like that in a quarterly report . . . dream on. The full release can be found at: intel.com{q4_earning} Fundamentally nothing has changed and I expect them to be relatively flat for a while . . . I would love to hear informed disagreement. PX