Intel's 4th-period net fell 37% on big charge for Pentium woes

Article Abstract:

Intel is reporting a 37% drop in 4th qtr profits as a result of a one-time pretax charge of $475 million to compensate for the cost of replacing defective Pentium processors. Net income was $372 million down from $594 million in the previous year's quarter while revenues increased from $2.39 billion to $3.23 billion. Excluding the Pentium charge, the company exceeded most analyst's expectations and despite the negative publicity from the flawed processor, the company's sales of Pentium-based computers never declined. Analysts had predicted that the cost of replacing the Pentium processors would cost the company $200 million but updated those predictions when the possibility of inventory write-offs was raised. Analysts praised the move, saying that the large write-off now would eliminate the need to make further write-offs in the future.

Semiconductor and Related Device Manufacturing, Microprocessor Chips, Product defects and recalls, Microprocessor, CPUs (Central processing units), Microprocessors, Intel Pentium (Microprocessor), Product Defect Failure

---

Intel's first-period net nearly tripled on demand for 486 chip, cost controls

Article Abstract:

Intel Corp. posts 1st qtr 1993 profit of $548 million, or $2.48 per share, nearly triple the 1st qtr 1992 profit of $184.1 million, or 86 cents per share. Revenue jumped 63 percent, from $1.24 billion in the year-earlier period to $2.02 billion. Intel's stock jumps $4.50 to $117.50 on Apr 12, 1993, after the results are announced. Intel's faster 80486 microprocessors, such as the 66-MHz 486DX2, are selling particularly well. Cost controls helped Intel attain a record semiconductor-industry operating margin of 40.5 percent in the quarter. Overhead fell from 17.7 percent in the year-earlier period to 13 percent, and gross margins as a percentage of sales advanced from 53.2 percent to 64.5 percent. Demand for 486 chips should remain high for several years, as users upgrade their older, slower computers.

Computer peripheral equipment, not elsewhere classified, First Quarter

---

Similar abstracts:

• Abstracts: Motorola's 2nd-period net soared 57% amid continued world-wide demand. Intel's weak fiscal 3rd-period forecast indicates industry slump is accelerating
• Abstracts: International diversification: effects on innovation and firm performance in product-diversified firms. Effects of acquisitions on R&D inputs and outputs
• Abstracts: Coy telecom giant woos AT&T's customers. Sprint launches new plan aimed at small concerns
• Abstracts: Optimal reorganization policies for stationary and evolutionary databases. Joint determination of optimal inventory and quality control policy
• Abstracts: AT&T is shopping for firms involved in advanced communications services. part 2 Sprint may sell or spin off burgeoning cellular line; move would be gamble, with firm emphasizing new wireless services

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.