Compaq delays using Intel's new chip after it proves too fast for some uses

Article Abstract:

Compaq has announced that it will delay shipments of new high-end server products based on Intel's Pentium Pro processor because testing has revealed that the chip is too fast for some uses. Compaq found several instances where certain hardware combinations have problems running with the advanced chip. The company found that several combinations of network add-on cards added to network server machines where unable to keep up with the high-powered microprocessor. Most of the problems occurred with add-on cards based on the ISA technology, rather than the newer PCI technology. Compaq will delay shipping new Pentium Pro-based servers until the 1st qtr 1996, rather than releasing them in Dec 1995 as planned. Other computer manufacturers, including HP and Dell Computer, have no plans to delay their product shipments. Intel reports that the problem is a systems architecture problem, not a microprocessor architecture problem.

Electronic computers, Microcomputers, Usage, Computer industry, Product description/specification, Microprocessor, Product information, Compaq Computer Corp., CPQ, Microprocessors, Design and construction, Product introduction delays, Intel Pentium Pro (Microprocessor), Product delay

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Intel confirms investors' worries; chip giant's net falls short of forecasts; revenue will be flat

Article Abstract:

Intel reports net income for 4th qtr 1995 at $867 million, up significantly from the $372 million net income posted in the same quarter of 1994 but below many analysts' predictions. Overall revenue rose to $4.6 billion, an increase of 42% from the same period in 1994's $3.2 billion, but Intel forecasts that revenues will not increase in 1st qtr 1996. Intel's profits are hampered by the company's overinvestment in memory chips and the succeeding drop in memory chip prices. Intel's projections for stagnant revenue in early 1996 lends credence to some investors' concerns about the company and the semiconductor industry in general, where constant revenue growth is considered the primary tenet of a successful company. Analysts suggest that Intel's mitigated 4th qtr success will lead the company to reduce its focus in sales of memory chip/motherboard units.

Finance, Securities, Company sales and earnings, Company Dividends, Company Sales/Revenue, Company Earnings/Profit

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A big bet made Intel what it is today; now it wagers again; it's on course to become most profitable firm; but there is a mystery; can demand grow so fast?

Article Abstract:

Intel is planning to make another huge investment in capital spending as it did in 1991 and if it is able to recoup its investment, it could become the most profitable company. When the company took its 1991 risk, it was already the biggest developer of semiconductors, based mainly on the 486 architecture. The investment it made allowed the company to develop and release the Pentium processor, which has also become very popular. The investment needed to develop the Pentium was estimated to be about $5 billion. The company had a huge leap of 44% in net income to $889 million that surprised analysts and passed huge companies such as AT&T, General Motors and Exxon Corp. Intel has one advantage in that it is not as susceptible to business cycles because its main business is semiconductors which appear to be in perpetual demand.

Discrete Semiconductors, Semiconductor devices, Planning, Semiconductor device, Electronic components, Investments, Company business planning, Company Operations

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