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

To: Ibexx who wrote (53140)	4/14/1998 7:38:00 PM
From: Maverick	Respond to of 186894

Q1 Revenue $6.0 Billion, Q1 Earnings Per Share $0.72; Q1 EPS $0.81, Excluding One Time Charge; $1.8 Billion Stock Buyback in Q1 SANTA CLARA, Calif.--(BUSINESS WIRE)--April 14, 1998--Weaker than anticipated demand, particularly from OEM customers, led to lower first quarter revenue and earnings for Intel Corporation, the company said today. Weaker demand resulted in lower sequential revenue in the Americas, Japan and Europe. First quarter revenue in Asia-Pacific was up from the fourth quarter of 1997. For the quarter, over one half of microprocessor revenue was generated from P6 micro-architecture products, led by the continued rapid market acceptance of the Pentium(R) II processor. First quarter revenue was $6.0 billion, down 7 percent from first quarter 1997 revenue of $6.4 billion, and down 8 percent from fourth quarter 1997 revenue of $6.5 billion. Net income in the first quarter was $1.3 billion, down 36 percent from first quarter 1997 net income of $2.0 billion, and down 27 percent from fourth quarter 1997 net income of $1.7 billion. First quarter net income included a non-deductible one time charge to earnings of approximately $165 million, or $0.09 per share, for in-process research and development associated with the acquisition of Chips and Technologies, Inc. Earnings per share in the first quarter declined to $0.72 from $1.10 in the first quarter of 1997, a decrease of 35 percent. Earnings per share in the first quarter were down 27 percent from $0.98 in the fourth quarter of 1997. Earnings per share for the first quarter include the impact of the one time charge mentioned above. "This was a disappointing quarter," said Dr. Andrew S. Grove, chairman and chief executive officer. "The PC industry seems to have gotten ahead of itself, building more product than end-customers purchased." "We will, however, not let this diminish our conviction that our business, providing building blocks for a universe of connected computers, provides the foundation of the new technological world. We invest in our products, production facilities and programs guided by that conviction." In the first quarter, the company repurchased a total of 22.1 million shares of common stock at a cost of $1.8 billion under an ongoing program. Since the program began in 1990, the company has repurchased 235.5 million shares at a total cost of $8.6 billion. In March, Intel's Board of Directors approved an increase in the stock buyback program of 100 million shares. With this increase, a total of 129.7 million shares can now be repurchased under the program, after allowing for shares to cover outstanding put warrants. In the first quarter, approximately 78 million 1998 Step-Up Warrants were exercised and converted to common stock. Proceeds from the exercise of the warrants were approximately $1.6 billion. During the quarter, the company announced its regular quarterly cash dividend of $0.03 per share. The dividend is payable on June 1, 1998 to stockholders of record on May 1, 1998. Intel has paid a quarterly dividend for over five years.