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To: akidron who wrote (17439)	3/9/1998 5:16:00 PM
From: Teri Skogerboe	Respond to of 70976

Aki, that paragraph is from a DEC SEC document. Also interesting is that revenues are pretty flatish. TS DIGITAL EQUIPMENT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands except per share data) <TABLE> <CAPTION> Three-Month Period Ended ---------------------------- December 27, December 28, 1997 1996 ----------- ----------- <S> <C> <C> REVENUES Product sales .................................. $1,816,382 $1,844,280 Service revenues ............................... 1,508,091 1,513,467 ---------- ---------- TOTAL OPERATING REVENUES ....................... 3,324,473 3,357,747 ---------- ---------- COSTS AND EXPENSES Cost of product sales .......................... 1,133,394 1,208,235 Service expense ................................ 1,030,697 1,045,788 Research and engineering expenses .............. 272,155 249,841 Selling, general and administrative expenses ... 816,949 817,408 ---------- ---------- Operating income ............................... 71,278 36,475 Other (income)/expense, net .................... (14,104) (445) ---------- ---------- INCOME BEFORE INCOME TAXES ..................... 85,382 36,920 Provision for income taxes ..................... 10,600 5,039 ---------- ---------- NET INCOME ..................................... 74,782 31,881 Dividend on preferred stock .................... 8,875 8,875 ---------- ---------- NET INCOME APPLICABLE TO COMMON STOCK .......... $ 65,907 $ 23,006 ========== ========== NET INCOME APPLICABLE PER COMMON SHARE (1): BASIC EARNINGS PER SHARE ....................... $ 0.45 $ 0.15 ========== ========== DILUTED EARNINGS PER SHARE ..................... $ 0.44 $ 0.15

To: akidron who wrote (17439)	3/9/1998 5:19:00 PM
From: Gottfried	Read Replies (1) \| Respond to of 70976

aki, how did this guy get a report the analysts don't have yet? Also, I doubt Intel's competitors have the capacity to supply 60% of Compaq's boxes in Jan... GM

To: akidron who wrote (17439)	3/9/1998 5:54:00 PM
From: David Rosenthal	Read Replies (1) \| Respond to of 70976

For what it's worth, Intel has said Pentium II sales were on target. >>>> Intel, whose chips power 85% of the world's PCs, suggested its woes were largely due to a temporary inventory glut and all but ruled out the sub-$1,000 category as a culprit. Santa Clara, Calif.-based Intel said its top-priced Pentium II chip is enjoying the fastest roll-out of any microprocessor in company history. "If you were seeing a shift to the sub-$1,000 category," said Intel spokesman Howard High, "then you would think the Pentium II wouldn't be doing so well, because it really doesn't go in that category." >>>> Also from same article: >>>> The good news for hardware makers is that nobody seemed to be fretting about overall consumer and corporate demand for computers. Executives at big distributors, including Ingram Micro Inc. () in Santa Ana and Merisel Inc. () in El Segundo, said the market remains strong. "We are not at all alarmed," said Ingram President and Chief Operating Officer Jeff Rodek. >>>>> latimes.com Dave

To: akidron who wrote (17439)	3/9/1998 6:05:00 PM
From: Big Bucks	Read Replies (2) \| Respond to of 70976

Aki, Jim McMannis is very savvy on CPU/chip stocks. I think he is correct, Intel is overpriced and will continue to suffer at the hands of other, less expensive, CPU manufacturers. The general public wants a computer that is fast and cheap but that has acceptable performance for home applications. Like I've said before, who needs to have a Mercedes when a Corsica will do the same thing. It may not be flashy but it is reliable and cost effective. I think Intel would have been better off keeping the Pentium series but lowering the profit margin to kill off the competitors profit margins. They also should get another PR/Advertising firm, their commercials suck!!! Dazzle consumers with technology, show them the inside of a fab, lose the glitz it just doesn't inspire consumers. Just my opinion, BB

To: akidron who wrote (17439)	3/9/1998 8:10:00 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

aki, Re:Looks like tap city for Intels high margins.... Compaq, 60% non Intel boxes in Jan...and IBM 71%. That's mind boggling. Overall, 36% NON Intel boxes in Jan 1998 vs 7% in the first quarter of 1997. The retail consumer has spoken...and they didn't care as much about "Intel Inside" as the price on the outside... This is relevant to AMAT how???? As long as and-user demand remains strong and INTC et al increase their capex(which BTW they said they would along w/ their preannouncement) then I really do not care if the consumer is buying an AMD or Intel. INTC made no statement they were cutting back capex....that, along w/ end-user demand is all I really care about. Although in the long run I do believe that INTC will blow AMD out of the water, right now they are experiencing one of their "inflection points." BK