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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Duker who wrote (24046)	9/10/1998 5:30:00 PM
From: Skeeter Bug	Read Replies (2) \| Respond to of 70976

before averyone gets their panties in a wad about intel, realize that there is something novel called seasonality. also, expectations were crappy to begin with. intel, at best, is a very slow growth company that isn't priced like it. this is more like a "are death has been greatly exaggerated" announcement vs an "everything is great in rosy scenario..." announcement.

To: Duker who wrote (24046)	9/10/1998 5:36:00 PM
From: Big Bucks	Read Replies (2) \| Respond to of 70976

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. I read this as: fab closures/cancellations/postponment of new fab expansion. 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. I read this as: We are trying to make our "aquisition" of Digital Equipment worthwhile, it needs to be upgraded so we can sell it.<g> Seriously, all in all not a bad forecast. I guess if you utilize your resources properly and depreciate your established equipment base you can optimize your profitability. What a concept, efficiency in operations, makes money!! BB