Wednesday, January 12, 2005

Intel Cools

Intel Corp. said fourth-quarter net income fell off the mark. Finally, the semiconductor king is throwing their inventory on diet, but margins are still not as impressive as they could be. While PC demand is up, Intel was probably forced to squeeze prices lower because of AMD, which has been on Intel's tail since as far back as I can remember. The Motley Fool opines that

Rev. grew sequentially 13% the best since 1996. Cash & securities up about 1 billion (yr over yr). They said CapX was up 1 billion. They see IT industry growing. Notebooks were about 50% of sales (better margins in note book products). Income came from processors and motherboards + chip sets. Very good growth in boards and chips sets for the 4th qtr. INTC gain'd market share in chip sets. 65 nan pushing productivity. Although revenue was up a billion - GM at 58% was flat. That's because of a lot of startup costs loaded in this qtr. Inventory leaner than expected. INTC shipped more than expected. In fact, they wish they had more inventory to sell! Christmas was very good. Now, the GM will be good going forward should stregthen.
IT spending is picking up. Chip sets are currently built on old wafer but they will be built on the 300 mm wafer and should improve productivity. Andy (CFO) sees previous CapX spending starting to kick in and will continue to drive productivity in futures years. Product line trouncing AMD. It will be very hard for AMD hold ground. Intel is dominating the industry. Wireless Lan doing quite well as are their high end processors. They see market share gains in those areas.
Intel finished higher in after hours trading.

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