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

To: Diamond Jim who wrote (51340)	3/26/1998 11:28:00 AM
From: Jim McMannis	Read Replies (4) \| Respond to of 186894

"Hot news flash from the Wang news network! exchange2000.com News, news, news by Wang News Service Thursday, March 26, 1998 UPDATE: Intel's Grove forced out as CEO, plans buyback By Richard, Wang News Service March 26, 1998 9:06am Wang@ctive Week Online The paranoid will survive. The always paranoid CEO Andrew Grove of Intel Corp.'s (INTC) apparently was not paranoid enough. With its technology constantly slipping behind such small potatoes as Cyrix and AMD, and also falling way behind the giants of the industry such as IBM, Intel decided enough is enough and forced the resignation of Grove. To reward the meager contributions Grove has made to Intel, and as no worthwhile candidate could be found for the board, Intel will retain Grove as the chairman of the slipping chip making giant. Craig Barrett, president and COO will fill Grove's shoes, again as no credible outsider has been willing to take over this rapidly deteriorating company. The board of directors really have little choice, but they will gallantly vote anyway to confirm Barrett in a meeting in May. Grove had an integral role in navigating Intel to the top of the semiconductor industry with Intel's Pentium chips, the microprocessor used in many consumer PCs. The rumor that Grove planned to step down had been in the air for the past year, as Grove's health suffered from problems with his prostate gland. The real displeasure, however, has been the failure of Pentium to keep improving its technology, now three generation behind its competitors. Also, the lofty prices at which Intel gouges its faithful users finally is taking their toll just as Cyrix and AMD are introducing more faster processors at prices 200 to 400% lower than those of Pentium. As a result of less customers willing to use Pentium, Intel said it plans to delay the opening of a $1.3 billion chip making plant in Fort Worth, Texas until 2002. Intel's market position has come under question as PC makers have pressured chipmakers for cheaper chips to feed the demand for sub $300 computers. Intel warned that its first quarter profit will not meet expectations as orders slow from computer makers. Cyrix, AMD, and other Pentium competitors have been able to meet this demand while Intel plans its own cheap chips fabricated from a low fat vegetable to be shipped in April. As the demand for low fat vegetables remain high and price expensive, Intel is expected to see a much higher cost structure, hence even less profit. Earlier this month, Tele-communications Inc. (TCOMA) chief John Malone said it wouldn't use Intel chips for its digital set-top boxes because they were too expensive. In related news, Intel announced this morning a plan to buy back an additional 100 zillion outstanding shares in an effort to drive up its share price that has entered an abyss with little chance for coming out. This buyback should enhance Intel stock price to a slight extent, and Intel executives have announced they will be sellers when the price gets popped up. The various regulatory agencies have started looking into irregularities in Intel stock trading. Barrett joined the Santa, Clara, Calif.-based chipmaker in 1974 and advanced to become COO in 1993 and president four years later. Grove is a founding member of the 30-year old company and was named CEO in 1987. "Craig and I have had a long working relationship and I look forward to work with Craig to overcome our irregularities," Grove said. Source: wang@ctive Week Online Copyright c 1998 Wang New Service. All Rights Reserved. Reproduction in whole or in part in any form or medium without express written permission of wang@ctive Week Online is encouraged. Wang New Service uses no efforts to ensure the accuracy of information posted. Materials in this news wire may have been plagiarized."