Intel earnings decine 37% on charge for Pentium flaw
Article Abstract:
Intel is planning to take a one-time pretax charge of $475 million to compensate for costs associated with the replacement of defective Pentium processors in an action that will result in a 37% loss in earnings for the company's fourth quarter. Intel reports earning of $372 million or 86 cents per share down from $594 million in the previous year's quarter. Revenues were up 35% from $2.39 billion to $3.23 billion, the first quarter in which revenue at Intel exceeded $3 billion. Intel provided users with free replacements for the defective processors after a public uproar that the processor caused problems in division calculations. Analysts say that despite the write-off resulting in a drop in earnings, Intel had a good quarter and has probably made a conservative estimate as to the cost of replacing the processors.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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Sales of high-end chips help Intel beat estimates
Article Abstract:
Intel Corp.'s fourth-quarter results have exceeded expectations by a wide margin. Earnings for the quarter of $2.1 billion were up from $1.7 billion in the fourth quarter of 1998. Revenues rose to $7.6 billion from fourth-quarter 1997 revenues of $6.5 billion. The good results are based on successful changes in operating efficiency and high-end microprocessor sales. Intel has also been successful in its market-segmentation strategy, offering high-end Pentium Xeon chips, middle-end Pentium II chips and low-end Celeron chips. Earnings for 1998 of $6.1 billion are down from $6.9 billion in 1997, but revenues were up in 1998 to $26.3 billion from $25.1 billion in 1997. Expectations for first-quarter 1999 sales and revenue are expected to be down from fourth-quarter 1998 because of seasonal variations.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1999
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Intel earnings do not meet expectations
Article Abstract:
Intel Corp. released its third-quarter earnings information with results that did not meet the estimates of financial analysts. Intel's net income fell to $1.46 billion, a drop of 6.4% from the same period last year. The share price dropped from 44 cents to 42 cents. Revenue, however, was up nine percent from $6.73 billion to $7.33 billion. The company also took one-time charges of $333 million for purchased research and development and $121 million for good will amortization and other acquisition costs. Not counting these charges, Intel's results would show earnings of $1.9 billion compared to last years earnings of $1.58 billion. The company is blaming the results on lower microprocessor prices and narrowing profit margins.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1999
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