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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: greenspirit who wrote (78932)	4/13/1999 7:56:00 PM
From: Chuan Lee	Read Replies (2) \| Respond to of 186894

Intel -3: Co. Says 2Q Outlook Fits Seasonal Trends Intel's earnings report comes after several days of conflicting information from leading PC companies. The world's top PC maker, Compaq Computer Corp. (CPQ), issued a profit warning Friday and blamed a weak industry environment for its shortfall. But Dell Computer Corp. (DELL) and Hewlett-Packard Co. (HWP) have both said the PC business is fine. Speaking in a conference call, Intel vice president Paul Otellini didn't report industry-wide weakness, saying instead that the first quarter was "slightly better" than the seasonal norm. "Compaq is a large (Intel) customer but not the entire market," he said. But he said Intel is factoring Compaq's problems into its business outlook for the rest of the year. When an analyst questioned Otellini about the company's cautious second-quarter outlook, he said the PC market is usually slower in the June quarter. "If you look at the pattern in the second quarter, (the PC market) has been flat to down seasonally for a number of years," Otellini said. As Wall Street has worried about the state of the PC market, some analysts have worried about a relapse of the inventory build-ups that plagued the industry in 1998. But Otellini said there has been no sign of inventory buildups. Intel vowed in its last conference call to regain market share lost to Advanced Micro Devices Inc. (AMD) in the U.S. retail market, where cheap PCs are the rage. After slashing prices on its economy-line Celeron chips, Ottelini said Intel increasing its share in this market. "We are very pleased with our progress at the low end," he said in the conference call. But he said some corporate customers are buying Celeron-based chips, too. Intel probably doesn't want this to become a trend, since the company relies on corporate customers to buy more expensive machines than consumers.