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Strategies & Market Trends : Electronic Contract Manufacture (ECM) Sector -- Ignore unavailable to you. Want to Upgrade?

To: kolo55 who wrote (1891)	11/10/1998 7:05:00 PM
From: kolo55	Read Replies (1) \| Respond to of 2542

Intel pre-announces better revenue growth. Tuesday November 10 6:20 PM ET Intel Predicts Strong 4Q Sales SAN JOSE, Calif. (AP) - Intel Corp. (Nasdaq:INTC - news) on Tuesday disclosed its fourth-quarter sales would exceed Wall Street forecasts because of surprisingly strong demand for personal computers that use its microprocessor chips. The disclosure was the second consecutive quarter that Intel has predicted surprisingly strong results in a positive sign for the broader technology industry, a key engine of the U.S. economy. Intel is considered by many market watchers to be a barometer of trends in computer hardware and software. When the world's largest maker of computer chips announced its earnings in October, analysts expected Intel to report only slightly higher revenue with its fourth-quarter results. The results will be released in January. The company said it's now expecting revenues of about $7.3 billion, 8 to 10 percent higher than the third quarter's $6.7 billion. That would make this year's fourth quarter revenue 13 percent higher than the $6.51 billion revenues reported in last year's fourth quarter. Intel attributed the improved outlook to stronger-than-anticipated demand for personal computers that use its chips for brainpower. Specifically, personal computer makers who buy Intel chips have been clearing older models out of their inventory for the previous two quarters, and are now starting to assemble more new personal computers for sale. Cost-cutting is also helping to strengthen results. In April, the company announced plans to cut 3,000 jobs in its broadest work force reduction in a decade. The company said it hopes to be within a few hundred people of that goal by the end of this year. Intel made the disclosure after the close of financial markets. The company's stock rose $1.561/4 to $97.561/4 in Tuesday trading on the Nasdaq Stock Market.

To: kolo55 who wrote (1891)	11/10/1998 11:31:00 PM
From: Douglas V. Fant	Respond to of 2542

Paul, INVX has actually become a "switch-hitter", making flex assembly components, and is also entering the flip chip packaging (i.e. assembly) area. INVX has no debt and $50mm cash in the bank and said today that it is looking for acquisitions. But now estimating that 50% of its revenues will be from flip chip assembly by the end of this year, you wonder if some large ECM looking for new technologies in flex circuit manufacturing (INVX has created a "dual flex" manufacturing technique-i.e., a two-sided flexible (bendable) circuit, and capacity in flip chip assembly won't "vacuum up" INVX.... BTW SFLX's deal with IBM while big, is just a very small portion of the flip chip/flex assembly business- a business which is accelerating along with the drive to minitiarize comsumer electronic components...