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

To: Sonny McWilliams who wrote (53335)	4/15/1998 1:38:00 PM
From: Maverick	Read Replies (1) \| Respond to of 186894

"Intel is on the defensive now. There's also weakening demand for PCs and that's not helping.'' mercurycenter.com ''This was a disappointing quarter,'' said Andrew S. Grove, Intel's chairman and chief executive officer. ''The PC industry seems to have gotten ahead of itself, building more product than end-customers purchased.'' 'Companies know that Wall Street is going to punish their stock price. So you see them take (this kind of) action around the time that earnings are about to come out as a way of appeasing those kinds of pressures,'' said John Challenger, of Challenger, Grey and Christmas, a Chicago-based outplacement firm that tracks corporate work force reductions. ''Intel and the rest of the industry just got a little ahead of itself,'' said Andy Bryant, vice president and CFO for Intel. ''PC sales are still growing, just not by as much as we thought they would. Now we have to cut back a little bit.'' Observers, however, were not convinced that Intel has solved its difficulties, particularly considering that its upcoming low-end chip, Celeron, has been panned recently for poor performance in industry magazines. Celeron is Intel's first Pentium II chip designed specifically for the sub-$1,000 PC marketplace. ''No one is going to want to buy a chip that has been so obviously crippled,'' said Brian Halla, president of National Semiconductor Inc. of Intel's Celeron. On Tuesday, National's Cyrix subsidiary introduced the M2300, a Pentium clone processor running at 300-MHz and priced below the Celeron. If Intel can't increase demand for higher-powered systems, which it is targeting with new 350 and 400-MHz Pentium II processors, ''it's going to be a tough four to six quarters for the PC industry as a whole,'' said Ashok Kumar, a financial analyst for the Minneapolis based firm Piper Jaffray Inc. ''Intel is on the defensive now,'' said analyst Drew Peck at Cowen & Co. ''There's also weakening demand for PCs and that's not helping.''