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To: Badger who wrote (64282)	9/10/1998 4:36:00 PM
From: Duker	Respond to of 186894

Intel just said they would beat the revenue numbers. --Duker

To: Badger who wrote (64282)	9/10/1998 4:37:00 PM
From: nihil	Read Replies (4) \| Respond to of 186894

RE: Intel announces Q3 earnings to be above expectations according to CNBC

To: Badger who wrote (64282)	9/10/1998 4:53:00 PM
From: nihil	Read Replies (2) \| Respond to of 186894

Intel Third Quarter Revenue to be Above Expectations Business Wire - September 10, 1998 16:44 SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 10, 1998--Stronger than anticipated demand, especially in North America and Europe, is expected to cause revenue to exceed Intel's expectations for the third quarter of 1998, Intel said today. When the company announced second quarter earnings in July, the expectations were that revenue in the third quarter of 1998 would be flat to slightly up from second quarter revenue of $5.9 billion. The company now expects higher revenue. BUSINESS OUTLOOK The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not reflect the potential impact of any mergers or acquisitions that may be completed after the date of this release. -- The company expects revenue for the third quarter of 1998 to be up approximately 8 to 10 percent from second quarter revenue of $5.9 billion. Consistent with the company's earlier expectations, second half revenue is expected to be greater than the first half revenue. -- Gross margin percentage in the third quarter of 1998 is expected to be up a couple of points from 49 percent in the second quarter. Included in the expectation for gross margin in the third quarter of 1998 are write-offs associated with facilities realignment to improve manufacturing efficiencies, and the previously announced headcount reduction program. Intel's gross margin expectation for the full year 1998 is 52 percent, plus or minus a few points. In the short-term, Intel's gross margin percentage varies primarily with revenue levels and product mix. -- The company believes that over the long-term, the gross margin percentage will be 50 percent plus or minus a few points. Intel's long-term gross margin percentage will vary depending on product mix. -- Expenses (R& D plus MG &A) in the third quarter of 1998 are expected to be approximately 7 to 8 percent higher than second quarter expenses of $1.3 billion, up from earlier guidance of 3 to 5 percent higher than second quarter expenses. Expenses are dependent in part on the level of revenue. -- R & D spending is expected to be approximately $2.8 billion for 1998, including the approximately $165 million for in-process R&D associated with the acquisition of Chips and Technologies, Inc. in the first quarter. -- The company expects interest and other income for the third quarter of 1998 to be approximately $170 million, up from prior guidance of $145 million, assuming no significant changes in interest rates or expected cash balances, and no unanticipated items. -- The tax rate for the remaining quarters of 1998 is expected to be 33.0 percent. -- Capital spending for 1998 is expected to be approximately $4.5 to $4.7 billion, flat to slightly up from $4.5 billion in 1997. The current estimate includes the acquisition of the capital assets of Digital Equipment Corporation's semiconductor manufacturing operations. -- Depreciation is expected to be approximately $2.9 billion for 1998. Depreciation in the third quarter of 1998 is expected to be approximately $760 million. The above statements contained in this outlook are forward-looking statements that involve a number of risks and uncertainties. In addition to factors discussed above, among other factors that could cause actual results to differ materially are the following: business and economic conditions, and growth in the computing industry in various geographic regions; changes in customer order patterns, including changes in customer and channel inventory levels; changes in the mixes of microprocessor types and speeds, purchased components and other products; competitive factors, such as rival chip architectures and manufacturing technologies, competing software-compatible microprocessors and acceptance of new products in specific market segments; pricing pressures; excess or obsolete inventory and variations in inventory valuation; development and timing of introduction of compelling software applications; continued success in technological advances, including development and implementation of new processes and strategic products for specific market segments; execution of the manufacturing ramp; costs associated with excess manufacturing capacity; the ability to grow new businesses and successfully integrate and operate any acquired businesses; unanticipated costs or other adverse effects associated with processors and other products containing errata (deviations from published specifications); impact on the Company's business due to internal systems or systems of suppliers and other third parties adversely affected by year 2000 problems; claims due to year 2000 issues allegedly related to the Company's products or year 2000 remediation efforts; and litigation involving antitrust, intellectual property, consumer and other issues; and other risk factors listed from time to time in the company's SEC reports, including but not limited to the report on Form 10-Q for the quarter ended June 27, 1998 (Part I, Item 2, Outlook section). Copies of this earnings release and Intel's 1997 annual report can be obtained via the Internet at www.intc.com or by calling Intel's transfer agent, Harris Trust and Savings Bank, at 1-800-298-0146. Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom.

To: Badger who wrote (64282)	9/10/1998 8:33:00 PM
From: Barry Grossman	Respond to of 186894

Badger, Re: <<Yeah, it can get brutal sometimes, but I'd rather have that than have to worry about office politics and having to curry favor with my boss to keep my position. I like knowing that my success depends on how well I do my job, not seniority, favoritism, or something else.>> This is exactly why I went to work for myself in 1980. It is comforting to know that Intel has the same attitude that I do on this subject. Just do your personal best and you will reap the rewards. And we investors will too. Barry