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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: Doug who wrote (6449)	9/10/1998 8:29:00 PM
From: pat mudge	Read Replies (2) \| Respond to of 18016

Intel expects higher earnings than expected and Oracle beats analysts' estimates. Could lift techs tomorrow. <<< September 10, 1998 Intel's Strong Revenue Outlook Gives Investors Much-Needed Lift An INTERACTIVE JOURNAL News Roundup Intel Corp. gave investors a much-needed lift Thursday afternoon, saying its third-quarter sales would rise 8% to 10% from the second quarter, when revenue totaled $5.9 billion. The news came as a welcome sequel to a bleak trading day that saw the Dow Jones Industrial Average fall nearly 250 points and the tech-heavy Nasdaq Composite Index fall nearly 40 points. The news sent the Santa Clara, Calif., chip giant's shares up to $83.875 in after-market trading, after falling $2.0625 to $79.1875 on Nasdaq during the regular session. An analyst said the news should have "a dramatic impact" on the stock Friday. "Clearly investors are going to be scrambling to get on board," said Drew Peck, an analyst at SG Cowen Securities Corp. "Intel is a bellwether name ... and portfolio mangers need to get in." Intel cited stronger-than-anticipated demand for its products, especially in North America and Europe. The company had previously reported that revenue would be flat to slightly higher than second-quarter revenue of $5.9 billion. Intel also expects second-half revenue to be greater than first-half revenue. Intel reported revenue for the first half ended June 28 of $11.9 billion. The company said gross margin percentage in the third quarter of 1998 is expected to be up a couple of points from 49% in the second quarter. Intel said its gross margin expectation for the full year is 52%, plus or minus a few points. The company said that over the long term, gross margin percentage will be in the range of 50%. The company said it expected its expenses in the fiscal third quarter to be approximately 7% to 8% higher than second-quarter expenses of $1.3 billion, an increase from earlier expectations that expenses would climb 3% to 5%. Spending on research and development, meanwhile, is expected to be approximately $2.8 billion for 1998, including about $165 million for in-process R&D associated with the acquisition of Chips and Technologies Inc. in the first quarter. Intel has struggled with a host of factors this year, from the economic crisis in Asia to an antitrust investigation pursued by the Federal Trade Commission. But those problems have been overshadowed by the company's struggle to adapt to a powerful shift in the PC market to machines priced below $1,000. That shift has forced Intel to slash chip prices to remain competitive, leading to a slide in profit margins and the company's stock and opening the door for competitors.>>>> >>>> Oracle's Net Income Jumps 30%, Beating Wall Street's Expectations Dow Jones Newswires Oracle Corp., which dominates the market for the database software that serves as the foundation for most modern business processes, released results for its latest period Thursday that topped expectations. For the fiscal first quarter ended August 31, the Redwood Shores, Calif., company reported net income rose 30% to $195 million, or 20 cents a diluted share, from $149.8 million, or 15 cents a share, in the year-earlier period. That topped analysts' estimates for net income of 16 cents a share. Revenue, meanwhile, rose 28% to $1.75 billion from $1.368 billion. Revenue from Oracle's database business, including database, tools and services, grew 25% to $1.3 billion, while revenues from applications-software and related services grew 37% to $500 million. Revenue from consulting and training services, finally, increased 48%. "The phenomenal growth of the Internet is driving demand for our database technology," said Lawrence Ellison, Oracle's flamboyant billionaire chief executive officer. Databases, which store business records, are a foundation for software that companies use to manage transactions and internal processes. Besides the software itself, Oracle derives a substantial amount of its revenue from services to help customers install, customize and maintain its programs. Oracle, No. 2 in the software market behind rival Microsoft Corp., had been coping with the after-effects of a sales-force reorganization last year and turmoil in foreign markets. Business applications are a newer market for Oracle, and one growing faster than databases. But the company faces stiff competition from companies that specialize only in that business, such as Germany's SAP AG and PeopleSoft Inc., and have been growing much faster than Oracle. Shares of Oracle rose 31.25 cents to $22.125 in trading on the Nasdaq Stock Market Thursday. The results were released after the close of trading.>>>>>