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

To: Dom B. who wrote (60469)	7/15/1998 8:22:00 PM
From: Tony Viola	Read Replies (4) \| Respond to of 186894

Hey Dom B., how are you? I listened to the conference call just now. That's a day late, but I picked up a few tidbits I thought I'd throw in here. First, I think the Intel guys that talked about results, and had to answer all the questions (Andy Bryant and Paul Otellini) sounded as upbeat and confident about the future as ever. Also, as always, they came across as the ultimate pros that they are, in their business (I've heard them and a few others in my time). The summary part was as we've all seen or heard...the revs, profits, EPS, GM's, blah blah, but the Q and A had some interesting views or points I hadn't heard: 1. In his question, Kurlak made a comment that 2Q was down for units shipped and asked what unit growth for 3Q looked like. Bryant answered that he couldn't answer that directly, but could say confidently that revenues would be up, er, ah, I mean flat to slightly up in 3Q. Freudian slip? 2. A lot of questions about Xeon were asked, mostly about how Intel saw the ramp happening, how it would affect GM %'s, etc. Obviously, no predictions, but, to me, some good related information came out. - Otellini said they were on target for shipments of Xeon processors and chipsets that allow 4 way and more multiprocessor servers by end July (didn't say the bug is fixed, but has to be). He also said that servers would be available to ship from OEM's the same time as the chips are available from Intel. To me this means the OEM's are testing servers with bug fixed chips right now. - Otellini also said Intel has not started any Pentium Pro wafers "for some time". Since Xeon is the replacement for the Pentium Pro, Xeon obviously has to be ready for all systems go, or they wouldn't have pulled the plug on the Pro. This might not be all that important to some, but it tells me Intel has all confidence in Xeon. - Another questioner got sneaky and asked what percentage of all Intel æP's Xeon would comprise going forward. Kind of a back door way to get Xeon volumes. Otellini said Xeon would make up an increasingly larger percentage of all Intel processors as they go forward, quarter by quarter. Well, it should, since it's starting at zero, right? However, Celeron or other Intel æP's could also be increasing enough to swamp Xeon out. Not so, Paul said. 3. Mendocino. Paul O. told me at the stockholders' meeting it would be a 4Q product. In this CC he said "early second half". Sounds like Otellini is validating Paul E.'s 8/24 that he mentioned today, or, at the latest, 9/13, which was another date heard. Otellini said very fast production rampup, also in early 2H! 4. 0.18 Micron. We've heard it before (Paul E?) and Otellini said it again, that it would be moving in from 2H99 (early 2H) to 2Q99. Expect production in Q3 with a fast rampup. 5. Cost control. Bryant said it would continue very tight. Goal still to reduce headcount, mostly by attrition, by 3,000 by end '98. He said that media spending would most likely NOT be reduced because of all the new products rolling out. MORE BUNNY SUITS! That's what I got, and that's enough (more than). What I'm really trying to do is hype the stock a few more bucks! Standard disclaimer that I am an Intel bull and proceed at your own risk. Tony