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Technology Stocks : PC Sector Round Table -- Ignore unavailable to you. Want to Upgrade?

To: Mark Oliver who wrote (1685)	4/13/1999 7:59:00 PM
From: Sam	Read Replies (1) \| Respond to of 2025

CPQ says that they aren't alone, everyone in the PC business is hurting. Intel (article below), HWP say nope, things are going well. A little da' nile in Texas nowadays? Apparently buying DEC and Tandem was a little much for CPQ to chew, especially in conjunction with going to BTO and the Internet. Intel posts first-quarter earnings above forecasts SANTA CLARA, Calif., April 13 (Reuters) - Intel Corp., the world's largest computer chip maker, on Tuesday reported first-quarter earnings slightly above Wall Street's expectations, easing concerns about the possibility of a major slowdown in PC sales. The Santa Clara, Calif.-based company said its first quarter net income rose to $2.0 billion, or 57 cents a share, from $1.3 billion, or 36 cents, a year earlier. The earnings, adjusted for a two-for-one stock split, compared with the Wall Street consensus of 55 cents, according to First Call, which tracks analysts' estimates. The company also said it expected its second-quarter revenues to be flat to slightly lower than first quarter revenues of $7.1 billion, citing seasonal slowness. The second quarter is typically slower than the first quarter. ''There are no surprises here,'' said Hans Mosesmann, an analyst with Prudential Securities. ''The important thing is there is no fundamental problem with end demand. They are guiding for seasonal demand. ...Guidance of flat-to-slightly-down (revenues) -- you would expect them to say that. If they had said something else it would be worrisome.'' First-quarter revenues rose 18 per cent to $7.1 billion from $6.0 billion a year ago, though the latest result was 7 percent lower than revenues in the company's strong fourth quarter. In January, Intel forecast that first-quarter revenues would be flat to down versus its fourth quarter revenues of $7.6 billion, again citing seasonal slowness. ''As we expected, revenue declined from the prior quarter reflecting a seasonally slower selling period,'' Intel Chief Executive Craig Barrett said in a statement. ''We are seeing positive results from the launch of new products across all segments,'' he said. Intel introduced several products in the quarter, such as the Pentium III processor and Pentium III Xeon chips for workstations and servers, as well as higher-speed versions of its Celeron processors for low-cost computers and mobile Pentium II processors. Intel's first-quarter gross profit margins were also a bit better than expected. Intel reported gross margins of 59 percent of revenues in the quarter, one point better in the fourth quarter of 1998. The improvement mainly reflected cost-cutting. Intel's gross margin in the second quarter is expected to be little changed from 59 percent in the first quarter. Expenses are expected to be about 6 percent to 10 percent higher than first-quarter expenses of $1.6 billion. Intel's first-quarter earnings came after Compaq Computer Corp., the world's largest personal computer maker, raised concerns on Friday with a warning that its first-quarter earnings would come in at about half of what Wall Street had been expected. It cited weaker worldwide PC demand and tough price competition. ''The No. 1 guy is having problems and people think there must be something wrong with the end market,'' Mosesmann said. ''It looks like perhaps not...I think things are going well at Intel.'' Intel stock was trading at $59 in after-hours trading, down from its close of $60.50 on Nasdaq, where it had lost 75 cents in regular trading.

To: Mark Oliver who wrote (1685)	4/17/1999 12:56:00 AM
From: Frodo Baxter	Read Replies (3) \| Respond to of 2025

>Is this true for cash deals also? Yes. Cash deals usually get done quicker, but commensurately, you get a narrower spread. >But, a cash deal seems so solid vs a stock deal where the buying target is wildly fluctuating with the value of the acquiring company. Since the arb has his position boxed in, the wild fluctuations only screw up his calculus if the gyrating prices actually kill the deal. In any case, I liked your PCTV arb, so I stole a chunk at 7 1/4. I may already be a winner. Did you manage to get any more? biz.yahoo.com Any more MMDS plays out there? WIRL? ATEL? You're the expert, so I'm leaning on you for some Monday morning swashbuckling...