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To: IQBAL LATIF who wrote (17266)	3/4/1998 4:37:00 PM
From: AlienTech	Read Replies (2) \| Respond to of 50167

Intel Corp (INTC) 86 7/16 +1 1/8: chip giant warning that it expects Q1 revenues and net to fall short of Street estimates; expects a 10% sequential decline in revenues from the $6.51 bln reported in the 4th qtr, or approx. $5.86 bln; puts gross margin at 53%; cites weaker than anticipated demand for the shortfalls....

To: IQBAL LATIF who wrote (17266)	3/4/1998 7:46:00 PM
From: steve susko	Read Replies (1) \| Respond to of 50167

A little update on Intel AFTER THE CLOSE ****** Intel (INTC) Update: Intel did not specifically note its earnings expectations for Q1, but based on the $650 mln revenue shortfall and its gross margins, we can expect analysts' estimates to come down about $0.20 from the current First Call consensus of $0.93. Other bad news: this Q1 shortfall was not just an Asia story; Intel cited weakness in Europe and the Americas as well. And still more bad news, margins fell to 53% in Q1. In January, Intel said that margins were "expected to be down a few points from 59 percent" in Q4 -- the decline to 53% sounds like more than a "few points." While many will be quick to note that Q1 is typically weak for Intel, it is not this weak. In the last three years, revenues have always risen sequentially from Q4 to Q1; this year they will fall 10%. Even year/year trends look ugly -- revenues will be down over 9% year/year in Q1; from 1995-97, year/year revenue growth averaged 30%. One positive (or not so negative) note: Intel said that expenses will be about 5% higher than their January estimate, but this increase is due entirely to a nonrecurring charge related to the Chips & Technologies acquisition.