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

To: Gary Ng who wrote (79026)	4/14/1999 10:53:00 AM
From: Robert Douglas	Read Replies (1) \| Respond to of 186894

More comments from Merrill Lynch analyst Joseph Osha: <<The company expects June quarter gross margin to be in line with March results of 59%, but at the same time suggested that results for the whole year could come in at 57%, plus or minus a few points. That suggests an extremely severe gross margin in the latter half of the year, but when pressed company representatives seemed to have no reason to be looking for a decline during a time of year that normally sees margins improve. We think Intel is being deliberately conservative – we are modeling 59.1% gross margin for the whole year, and 59% for the June quarter. We're not surprised by Intel's expectation that revenues will be flat for the June quarter, but like the 57% gross margin number we think that the company is leaving itself room for upside. Comments in the call confirmed that the company is not seeing any buildup of inventory in channel, a problem that helped drag revenues down sequentially last year…. We've been saying since we reinitiated coverage of Intel that the accumulate story this year is based on a strong second half. If yesterday's numbers cause the stock to decline investors should treat the dip as a unique buying opportunity.>>