Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: D.J.Smyth who wrote (60177)	7/14/1998 6:40:00 PM
From: Mo Chips	Respond to of 186894

<<Intel shows $278 million greater cost this quarter for "cost of goods sold"than last quarter which had slightly higher revenues. Probable scenario due to (a) buying materials in prepartion for the 2nd half of the year and the Christmas season?>> This is not the case as this would not be in accordance with GAAP. Additional materials purchased in advance of a ramp in production would be held in inventory or work in process on the balance sheet. The increase in cost of sales in the current quarter must be due to either (1) in increase in raw material or labor costs, (2) a decrease in the production efficiency, (3) a change in the sales mix (more sales of lower margin products), (4) or... i'm sure there are other things... Mo