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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Haolin Ni who wrote (15273)	11/10/1998 5:21:00 PM
From: JOHN CHEN	Read Replies (1) \| Respond to of 18691

check INTC, DELL message boards and I also called my broker.

To: Haolin Ni who wrote (15273)	11/10/1998 5:47:00 PM
From: BelowTheCrowd	Read Replies (2) \| Respond to of 18691

Intel Fourth Quarter Revenue To Be Above Expectations SANTA CLARA, Calif., Nov. 10, 1998 - Stronger than anticipated demand for PC products across all market segments and in all geographies is expected to cause revenue to exceed Intel's expectations for the fourth quarter of 1998, Intel Corporation said today. When the company announced third quarter earnings in October, the expectations were that revenue in the fourth quarter of 1998 would be up slightly from the third quarter revenue of $6.7 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 were not closed by the end of the third quarter of 1998. The company expects revenue for the fourth quarter of 1998 to be up approximately 8 to 10 percent from third quarter revenue of $6.7 billion. Gross margin percentage in the fourth quarter of 1998 is expected to be up a couple of points from 53 percent in the third quarter. In the short-term, Intel's gross margin percentage varies primarily with revenue levels and product mix. Expenses (R&D plus MG&A) in the fourth quarter of 1998 are expected to be approximately 8 to 10 percent higher than third quarter expenses of $1.4 billion, up from earlier guidance of 3 to 5 percent higher than third quarter expenses. Expenses are dependent in part on the level of revenue. Intel is still making progress on reducing headcount and the company expects to be within a few hundred people of its previously announced headcount reduction target of approximately 3,000 employees by the end of the year. R&D spending for the fourth quarter of 1998 is expected to be approximately $650 million. The company expects interest and other income for the fourth quarter of 1998 to be approximately $200 million, up from prior guidance of $160 million, assuming no significant changes in expected interest rates or cash balances, and no unanticipated items. The tax rate for the fourth quarter of 1998 is expected to be 33.0 percent. Capital spending for 1998 is expected to be approximately $4.2 billion. This estimate includes the acquisition of the capital assets of Digital Equipment Corporation's semiconductor manufacturing operations. Depreciation in the fourth quarter of 1998 is expected to be approximately $780 million.