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To: shane forbes who wrote (10510)3/4/1998 9:51:00 AM
From: E. Graphs  Read Replies (1) | Respond to of 25814
 
Nice opening on SOX.......maybe we'll be taking the lift today:)

chart1.bigcharts.com:80/report?r=qchart&onbad=qbadsymbol&symb=sox&time=2&sid=11520&sec=x&xyz=435270015&s=20218



To: shane forbes who wrote (10510)3/4/1998 6:12:00 PM
From: Moonray  Read Replies (2) | Respond to of 25814
 
What Intel said: Intel First Quarter to be Below Expectations;
Lower than Anticipated Demand Impacting Results
04:16 p.m Mar 04, 1998 Eastern

SANTA CLARA, Calif.--(BUSINESS WIRE)--March 4, 1998--Weaker
than anticipated demand, particularly in OEM turns (orders from
PC manufacturers to be shipped within the quarter), is expected
to cause revenue and net income levels to fall below Intel's
expectations for the first quarter of 1998, the company said
today.

When Intel announced fourth quarter earnings in January, the
expectations were that revenue in the first quarter of 1998
would be approximately flat with fourth quarter revenue of
$6.5 billion. The outlook for the first quarter has been revised
from the view presented in the fourth quarter 1997 earnings
report on Jan. 13, 1998. Business Outlook

The following statements are based on current expectations.
These statements are forward-looking, and actual results may
differ materially. These statements do not reflect the
potential impact of any mergers or acquisitions that may be
completed after the date of this release, except as noted below.

o The company expects revenue for the first quarter of 1998 to
...be down approximately 10 percent from the fourth quarter
...revenue of $6.5 billion.

o Gross margin percentage in the first quarter of 1998 is now
...expected to be 53 percent, plus or minus a couple of points.
...The change from earlier guidance is due to the lower revenue
...expectation. In the short-term, Intel's gross margin
...percentage varies primarily with revenue levels and product
...mix. Expectations for Intel's gross margin for the full year
...1998 will be updated in the first quarter earnings report.
...Margin percentage will be 50 percent plus or minus a few
...points. Intel's long-term gross margin percentage will vary
...depending on product mix.

o The company completed the merger of Chips and Technologies Inc.
...with Intel Enterprise Corp. during the quarter. The acquisit-
...ion is expected to result in a one-time non-deductible charge
...in the first quarter of approximately $165 million, or $0.09
...per share. This includes a write-off of in-process R&D.

o Expenses (R&D plus MG&A) in the first quarter of 1998 are
...expected to be approximately 3 percent higher than the
...expenses of $1.4 billion in the fourth quarter. In January,
...expectations were that expenses in the first quarter of 1998
...would be approximately 2 to 5 percent lower than the fourth
...quarter. The increase from prior expectations is attribut-
...able to the one-time charge associated with the acquisition
...of Chips and Technologies Inc. Expenses are dependent in
...part on the level of revenue.

o R&D spending is expected to be approximately $3.0 billion for
...1998, up from $2.3 billion in 1997. In January, expectations
...were that R&D spending in 1998 would be approximately $2.8
...billion. The increase from prior expectations is primarily
...attributable to the one-time charge associated with the
...acquisition of Chips and Technologies Inc. Expenses are
...dependent in part on the level of revenue.

o The company expects interest and other income for the first
...quarter of 1998 to be approximately $175 million assuming
...no significant changes in cash balances or interest rates,
...and no unanticipated items.

o The tax rate in 1998 is expected to be 34.0 percent, excluding
...the impact of the one-time charge associated with the
...acquisition of Chips and Technologies Inc.

o Capital spending for 1998 is expected to be approximately $5.3
... billion, up from $4.5 billion in 1997.

o Depreciation is expected to be approximately $2.7 billion for
...1998, up from $2.2 billion in 1997. Depreciation in the first
...quarter of 1998 is expected to be approximately $580 million.
The above statements contained in this outlook are forward-looking
statements that involve a number of risks and uncertainties. In
addition to factors discussed above, among other factors that
could cause actual results to differ materially are the following:
business and economic conditions, and growth in the computing
industry in various geographic regions; changes in customer
order patterns, including changes in customer and channel
inventory levels; changes in the mixes of microprocessor types
and speeds, purchased components and other products; competitive
factors, such as rival chip architectures and manufacturing
technologies, competing software-compatible microprocessors,
availability of other computing alternatives and acceptance of
new products in specific market segments; pricing pressures;
excess or obsolete inventory and variations in inventory
valuation; timing of software industry product introductions;
continued success in technological advances, including
development and implementation of new processes and new
strategic products for specific market segments; execution of
the manufacturing ramp; excess or shortage of manufacturing
capacity; the ability to successfully integrate and operate any
acquired businesses; unanticipated costs or other adverse
effects associated with processors and other products containing
errata (deviations from published specifications); risks
associated with foreign operations; litigation involving
intellectual property, consumer and other issues; and other
risk factors listed from time to time in the company's SEC
reports, including but not limited to the report on Form 10-Q
for the quarter ended Sept. 27, 1997 (Part I, Item 2, Outlook
section).

Intel's 1998 Step-Up Warrants (INTCW) expire on March 14, 1998.
The warrants must be exercised on or before Friday, March 13,
1998. The last day of trading of the warrants on The Nasdaq
Stock Market will be March 10, 1998.

Copies of this press release can be obtained via the Internet
at www.intc.com or by calling Intel's transfer agent, Harris
Trust and Savings Bank, at 800/298-0146.

Intel, the world's largest chip maker, is also a leading
manufacturer of personal computer, networking, and communications
products. Additional information is available at
intel.com .

(See also: businesswire.com)

Copyright 1998, Business Wire

o~~~ O


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