As Intel goes, so goes the rise in stocks? bellwether issue hoists red flag on revenues
Article Abstract:
Intel revised its 1st qtr 1998 sales to about $5.85 billion, which represents an approximate 10% drop from Jan 1998 projections of $6.5 billion. The dominant software chips maker, which has become a sort of bellwether for overall corporate earnings, blamed the shortfall on weak sales of its older and less expensive processors. Pentium II, the newer and more powerful Intel processor line, was less affected. This suggests a sales drop in sub-$1,000 computers, whose 35% market share have accounted for the hottest segment. News of the Intel announcement triggered a sharp falloff in stock-index futures contracts, signaling investor fears of a market pullback today. The Japanese stock market's main Nikkei index sank by more than 1% early this morning.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1998
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Latest earnings epitomize shift in chip industry
Article Abstract:
Shifts in the semiconductor industry have resulted in Intel slightly bypassing the expectations of analysts, while Texas Instruments did far better than predicted and saw an increase in its share's value of 12%. Intel's earnings rose 58% to $1.65 billion, or 92 cents a share over the second qtr of 1996. First Call analysts had predicted an increase of 90 cents a share. The company's earnings in the second qtr and its expectations for the third are a reflection of the markets growing demand for lower cost PCs. The large demand for Texas Instruments' digital signal processors resulted in the company's earnings increasing by 6.7% to $2.56 billion, or $12 a share, to a record value of $109.50.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1997
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