Intel's net doubles on overseas demand; corporate orders also fuel fourth-quarter results; revenue jumps 41%

Article Abstract:

Intel Corp announces 4th qtr earnings of $1.91 billion as compared with $867 million reported for the same period last year. Analysts predict that Intel's 1996 yearly earnings of $5.16 billion will increase to at least $7.5 billion in 1997, allowing Intel to overtake Exxon's position as the second-most profitable company in the U.S. Chip analyst Rajiv Chaudhri, of Goldman, Sachs & Co, predicts that Intel will be the most profitable company in the world by the end of 1997. One ingredient in Intel's anticipated success is its alliance with Microsoft. Both companies are experiencing tremendous growth from increasing corporate and international demand for Microsoft's Windows NT OS which runs on Intel's powerful Pentium Pro microprocessor. Intel dismisses expert projections of a slowdown in its future growth as short-sighted. Intel will base its future business plans on an its belief that world-wide unit sales will increase over the next five years.

Finance, Company sales and earnings, Company forecasts, Company Sales/Revenue, Company Earnings/Profit, Company Business Forecast/Projection

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Uncertainty surrounds Digital despite deal with Intel; chip settlement lacks specifics, doesn't solve problem of boosting sales

Article Abstract:

A Nov 1997 agreement between DEC and Intel resolved the companies' battle over microprocessor patents, but industry observers remain uncertain about DEC's future. The agreement calls for Intel to buy DEC's semiconductor operations for $700 million, and it calls for other considerations, which insiders say will be worth about $800 million over ten years. Even so, most analysts have not revised DEC's earning estimates. Analysts say the deal's specifics have not been made clear, and they say the settlement does not address DEC's most pressing problem, which is how to increase sales. Revenue fell to a little over $13 billion in FY 1996, ended in Jun 1997, which was the lowest figure since 1990. Generally speaking, observers are optimistic, but they say questions still need to be answered.

Company legal issue, Cases, Sales management, Company analysis, Digital Equipment Corp., DEC

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California measure causes silence in Silicon Valley

Article Abstract:

Silicon Valley technology companies are refusing to discuss California's Proposition 211 before the Nov 1996 election. Proposition 211 would make it easier for stockholders to sue companies and their officials for making misleading statements. The proposition would enable shareholders to seek punitive damages and prevent companies from protecting their officials. Intel and Novellus Systems are refusing to discuss Proposition 211 with their investors, and other large technology companies are expected to follow their example. Industry observers feel this approach is designed to attract attention to the issue and encourage East Coast investment organizations to contribute to the campaign to defeat Proposition 211.

Forecasts and trends, Political activity, Industry trend, California, Silicon Valley

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