For Intel, tide is abruptly turning as analysts question whether it can retain profit margin

Article Abstract:

Intel Corp may be having too much good news. On Apr 12, 1993, the semiconductor company announced stupendous 1st qtr 1993 results; the following day, its stock fell 4-7/8 to 112-5/8 in heavy trading of 5.8 million shares. Some analysts now say that Intel will not be able to maintain its 1st qtr operating-profit margin of 40 percent, especially as competitors such as Advanced Micro Devices begin to ship clones of Intel's 486 microprocessor. These analysts theorize that Intel will be forced to cut the price of its 486. In 1992, Intel sold $5.8 billion worth of 486 chips. Many analysts, however, are still bullish on the stock, saying that Intel has a dominant market position. Some predict the stock to climb to $130 in 1993. Some analysts are wary of all microcomputer-related stocks, believing that that industry may be nearing the peak of a high-growth period.

Intel Corp., INTC, Column, Securities, Outlook, Profit Margin, Market Value, Industry Analysts

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LSI Logic's quarterly charge reflects plans to update chip-making process

Article Abstract:

LSI Logic Corp plans to take a charge of up to $110 million as part of the company's restructuring strategy. The charge will create a net loss of more than $100 million in the quarter ending Sep 27, 1992. The company had reported earnings of $804,000 in the 3rd qtr 1991. LSI has not consistently avoided losses in the 1990s, partially due to the slow economy and to the semiconductor market's weaknesses. The company will boost its manufacturing in Japan and Asia and will de-emphasize products that are no longer profitable. The manufacturing consolidations should save LSI $10 million per quarter. A new line of products is undergoing preparation for a September introduction.

Finance, LSI Logic Corp., LSI, Financial Analysis Software, Strategic Planning, Reorganization, Third Quarter, Losses

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