Bad times at Intel

http://news.excite.com/news/ap/011017/07/earns-intel

Quote:

Profits Fall 96 Percent


Updated: Wed, Oct 17 7:39 AM EDT
By MATTHEW FORDAHL, AP Technology Writer
SAN JOSE, Calif. (AP) - Intel Corp. met Wall Street's third-quarter expectations despite a 96 percent drop in profits and fears the terrorist attacks ruined September sales for the world's largest chip maker.

The Santa Clara, Calif.-based company, however, said its fourth-quarter revenues will only be flat compared to the third quarter. Sales usually grow 15 percent during that holiday buying season, analysts said.

"I am forecasting a less-than-seasonal fourth quarter based on consumer confidence and the worldwide economic outlook," chief financial officer Andy Bryant said in an interview.



For the three months ended Sept. 29, the company earned $106 million, or 2 cents per share, compared with $2.51 billion, or 36 cents a share, in the same period a year ago.

Excluding acquisition-related costs, net earnings were $655 million, or 10 cents a share, compared with $2.9 billion, or 41 cents a share a year ago, the company said Tuesday.

The results met the expectations of analysts surveyed by Thomson Financial/First Call.

"Intel delivered solid third quarter results in a turbulent environment, with revenue and microprocessor units up from the second quarter," said Craig R. Barrett, Intel's chief executive.

Third quarter revenue fell 25 percent to $6.5 billion, compared with $8.7 billion a year ago. Analysts were expecting third-quarter sales of about $6.4 billion.

Shares of Intel closed up 58 cents Tuesday to $24.96 on the Nasdaq Stock Market. In after-hours trading, shares gained 44 cents to $25.40.

During a mid-quarter update in early September, Intel said third-quarter revenue was on track with forecasts provided in July. The company made no comments on results after the attacks.

Intel said its core microprocessor business showed strength in the third quarter and its flash memory is showing signs of stabilizing. Flash memory is used in cellular phones, digital cameras and other devices.

As expected, the communications chip business remained soft.

Unquote

AMD Posts 3rd-Quarter Net Loss on 37% Drop in Revenue

17 Oct 17:55

SUNNYVALE, Calif. -- Advanced Micro Devices Inc. swung to a net loss in the
third quarter on a sharp drop in revenue, as the sluggish chip market and the
company's ongoing price war with archrival Intel Corp. put pressure on results.

The chip maker late Wednesday reported a net loss of $186.9 million, or 54
cents a share, compared with year-earlier net income of $408.6 million, or
$1.18 a share.

Revenue slumped to $765.9 million from $1.21 billion a year earlier and
$985.3 million in the second quarter.

Excluding $89.3 million in restructuring and other charges, a $6.9 million
inventory provision and $22 million for impaired investments, AMD (AMD) said
its loss would have been $97.4 million, or 28 cents a share.

Excluding a year-earlier gain of $336.9 million from the spinoff of its
Legerity business, as well as a $23 million tax loss, AMD would have earned
$219.3 million, or 64 cents a share, in the 2000 quarter.

AMD said earlier this month that a brutal price war with rival Intel Corp.

lopped $100 million off its third-quarter sales, which it pegged at about $766
million. The company said it could report a loss of as much as $220 million,
including a charge for shutting down plants. Excluding charges, AMD said its
loss would be between $90 million and $110 million, or 26 cents to 31 cents a
share.

At the time, the mean estimate of analysts surveyed by Thomson
Financial/First Call was for a loss of eight cents a share.

AMD and Intel (INTC) have been waging a fierce price war amid the downturn in
the personal-computer market. The rivals have been struggling with a steep
slowdown in demand for PCs, and Intel has been slashing prices to keep market
share up and to try to stimulate demand, forcing AMD to keep pace with the
price cuts.

In a prepared statement Wednesday, Chairman and Chief Executive W.J. Sanders
III noted Wednesday in a prepared statement that AMD "held market share in the
22% range in a very weak PC market" despite the price war.

"Nevertheless, drastic price cuts and large, cash-backed marketing programs
from Intel had the effect of driving down [average selling prices] on PC
processors" by 20% in the markets where Intel and AMD compete directly, Mr.

Sanders said.

Looking ahead, AMD said it expects a fourth-quarter operating loss. It
currently anticipates that fourth-quarter sequential revenue growth could range
from flat to a high single-digit percentage. Even the high end of this range
would be insufficient to offset current expense levels, the company said.

A survey of analysts by Thomson Financial/First Call produced a mean estimate
for AMD of a loss of 21 cents a share in the fourth quarter on revenue of
$807.6 million.

Well, from MY perspective, both companies are suffering much from the tech downturn right now. I don't care which is suffering more or which is suffering less. Fact is, BOTH are hurting so the whole thread is kinda moot...if you ask me...which you didn't

Mark-

When all else fails, throw your computer out the window!!!

Actually, it doesn't tell a different story Mat.

Intel's gross dropped about 25%, but AMD's gross dropped around 35%. So either way, both companies are hurting. AMD, being the smaller company is hurting more than Intel, BUT chances are, once the downturn passes, AMD may very well be the first to rebound. Right now AMD has more to rebound from, being at a loss in profits, while Intel is at least making a profit....regardless of what they did to stay profitable.

Mark-

When all else fails, throw your computer out the window!!!

Oh, how quickly trolls change their arguments. Be careful, Matisaro. You're starting to gain a reputation that you don't want.

<font color=green>I post so you don't have to!
9/11 - RIP</font color=green>