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To: MulhollandDrive who wrote (18595)	4/13/1999 5:34:00 PM
From: REH	Read Replies (1) \| Respond to of 93625

Intel Tops Analysts' Forecasts, But Warns Revenue Will Be Flat An INTERACTIVE JOURNAL News Roundup Chip giant Intel Corp. reported results for its latest period late Tuesday that topped analysts' expectations as revenue climbed 18%. But the chip maker warned second-quarter revenue will be flat to slightly down from the first quarter. For the first quarter, the Santa Clara, Calif., company reported net income of $2 billion, or 57 cents a share, a 57% gain from $1.3 billion, or 36 cents a share, in the year-ago quarter. That topped the consensus call of analysts surveyed by First Call for net income of 55 cents a share. Revenue, meanwhile, climbed to $7.1 billion from $6 billion in the year-ago quarter. But that figure trailed some analysts' estimates. Company Profile: Intel For the fourth quarter, Intel earned 60 cents a share on revenue of $7.6 billion in revenue. The fourth quarter is generally the strongest for makers of chips and PCs, while the first quarter is generally the weakest. Intel cited those seasonal factors in warning that it expects second-quarter revenue to be flat to slightly down from the first quarter. All results are adjusted for a 2-for-1 stock split that was paid April 11 to shareholders of record on March 23. Intel said gross margins came in at 59%, slightly ahead of analysts' projections and the 58.3% gross margins recorded in the fourth quarter. The company said it expects gross margins for 1999 to be approximately 57%. The company said expenses for the second quarter are expected to be 6% to 10% higher than the first quarter's $1.6 billion, citing higher merchandising spending and increased research and development. R&D spending for the year, it said, is expected to be approximately $3 billion. "We are pleased with our substantial year-over-year growth in profitability resulting from our cost-control efforts," Intel President and Chief Executive Craig Barrett said in a statement. Mr. Barrett added that the company is seeing "positive results" from new products such as the Pentium III and Xeon processors, higher-speed Celeron chips and mobile Pentium II processors. Shares of Intel fell 75 cents to $60.50 on the Nasdaq Stock Market Tuesday. The results were released after the close of trading. Before the earnings were released, analysts had little fear that Compaq Computer Corp.'s recent earnings warning would be reflected in Intel's numbers. Compaq, the PC giant that accounted for 13% of Intel's revenue last year, warned late Friday that its first-quarter results will fall far short of expectations, rattling both the computer and semiconductor industries. ABN Amro analyst David Wu said Intel's other major customers must be faring well, since the chip maker would have warned of a disappointing outlook if its business were in trouble. "The other 87% of [Intel's] business is doing well," he said.

To: MulhollandDrive who wrote (18595)	4/13/1999 10:44:00 PM
From: MileHigh	Respond to of 93625

bp, very interesting, Yahoo! News Business Headlines Tuesday April 13 10:23 PM ET Hewlett CEO Backpedals On Bullish Comments By Eric Auchard NEW YORK (Reuters) - Hewlett-Packard Co. (NYSE:HWP - news) Chief Executive Lewis Platt caused a stir on Wall Street Tuesday when he said his company could see revenue growth of 10 percent or higher in 1999, only to retract his comments later. Platt told reporters at a breakfast meeting at the New York Stock Exchange that the company's goal for its fiscal year ending October 1999 was to generate double-digit revenue growth, or better than 10 percent over fiscal 1998. By contrast, the company, the world's No. 2 computer maker measured in total revenues, posted revenue growth of 1 percent for its first fiscal quarter ended in January 1999. He indicated he was comfortable the Palo Alto, Calif.-company could achieve the double-digit goal, aided in part by a refreshed product line of high-powered business computers it unveiled at a news conference later Tuesday. ''We still think there's a pretty good chance at double-digit growth,'' Platt said. In particular he pointed to a recovery in H-P's business in Asia in recent months and gains across its printer, personal computer and server segments. The bullish remarks surprised Wall Street analysts, who had previously expected far less from Hewlett-Packard, one of the 30 components that make up the Dow Jones Industrial Average. Brokerage analysts have estimated the company will grow at a rate of about 6 to 8 percent during the current fiscal year, which would mark steady improvement from the first quarter's 1 percent growth rate and the fourth quarter's 4 percent rate. Buoyed by the new product introduction and his bullish outlook, Hewlett-Packard stock climbed $2.44 to close at $70.81 in composite U.S. stock market trading Tuesday, after his remarks were widely reported by financial wire services. However, the company later backpedaled. An investor relations spokesman said Platt's comments appeared to refer to the expected growth in the second-half of the year, which would offset the slower growth experienced early in the year. After the close of the stock market, the company issued a press release which presented a different explanation that it said ''clarified'' Platt's comments. Hewlett-Packard said its top executive's remarks about double-digit growth pertained to the company's expected shipments of personal computers this year, and not to the entire company results. The company's statement said it expected overall revenues to grow at the 6 to 8 percent rate this year, or consistent with analysts' expectations. Platt was in New York to herald the company's new generation of high-powered business computers designed to run both on its own UNIX computer chips and a new category of computer chip it is co-developing with Intel Corp. (Nasdaq:INTC - news) The company's new HP 9000 N-Class machines represent the high-volume part of Hewlett's server business computer product line-up, and contribute about 60 percent of server revenues. The older line of K-Class computers that the new machines replace have generated about $6 billion in the three-and-a-half years since they were introduced, said Nick Earle, the chief marketing officer of the company's corporate computing unit. Earle estimated that the new N-Class machines could produce more than $10 billion in revenues for Hewlett over the next four years. Another $30 billion in sales of connected products, like software and data storage -- or $40 billion in all -- are expected to result from sales of combined solutions, he said. The new machines are designed for use by businesses handling massive flows of information such as Internet service providers, or companies using the Internet to link to suppliers or customers in order to perform electronic commerce.