Intel's 4th-period net fell 37% on big charge for Pentium woes
Article Abstract:
Intel is reporting a 37% drop in 4th qtr profits as a result of a one-time pretax charge of $475 million to compensate for the cost of replacing defective Pentium processors. Net income was $372 million down from $594 million in the previous year's quarter while revenues increased from $2.39 billion to $3.23 billion. Excluding the Pentium charge, the company exceeded most analyst's expectations and despite the negative publicity from the flawed processor, the company's sales of Pentium-based computers never declined. Analysts had predicted that the cost of replacing the Pentium processors would cost the company $200 million but updated those predictions when the possibility of inventory write-offs was raised. Analysts praised the move, saying that the large write-off now would eliminate the need to make further write-offs in the future.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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Intel's first-period net nearly tripled on demand for 486 chip, cost controls
Article Abstract:
Intel Corp. posts 1st qtr 1993 profit of $548 million, or $2.48 per share, nearly triple the 1st qtr 1992 profit of $184.1 million, or 86 cents per share. Revenue jumped 63 percent, from $1.24 billion in the year-earlier period to $2.02 billion. Intel's stock jumps $4.50 to $117.50 on Apr 12, 1993, after the results are announced. Intel's faster 80486 microprocessors, such as the 66-MHz 486DX2, are selling particularly well. Cost controls helped Intel attain a record semiconductor-industry operating margin of 40.5 percent in the quarter. Overhead fell from 17.7 percent in the year-earlier period to 13 percent, and gross margins as a percentage of sales advanced from 53.2 percent to 64.5 percent. Demand for 486 chips should remain high for several years, as users upgrade their older, slower computers.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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