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

To: Jules B. Garfunkel who wrote (55692)	5/16/1998 1:21:00 PM
From: kolo55	Read Replies (1) \| Respond to of 186894

Intel did say margins could drop into the 40s for a while. The phrase I used in my post was: Also Intel admitted that LT the margin could bounce around between 40s and 60s, but would average 50% over the long haul. In one of their conference calls last year, Intel said this. Further, in order for the gross margin to average 50, as Intel has said, there are times that the margin will be in the 40s to balance out the times the margin is in the 50s and 60s. This is a mathematical consequence of the average function. Intel investors should listen very carefully to what the company is saying. They in no way have ruled out a drop of gross margins below 50% in calendar 1999. The forecast of improved margins are for the SepQ and DecQ this year. Well, the big capacity ramps by AMD and the Taiwanese won't be in place until the first quarter of calendar 99, and that's when to expect the margin squeeze to occur. What is the impact on Intel's earnings if the margin drops to the mid-40s? Paul