Intel's profit soars, lifting hopes for PCs

Article Abstract:

Intel's 3rd qtr 1996 profits exceeded analysts' expectations. Orders exceeded shipments for the quarter, raising industry hopes that PC sales are increasing as the crucial holiday marketing season nears. Intel's net income increased 41% to $1.31 for the 3rd qtr while its revenue increased to $5.14 billion, a 23% increase over last year's same period. This translates into $1.25 per share for the company's stockholders. Intel's stock price rose on the news, topping at $114.50 in after-hours trading. This means the company's 885 million shares of outstanding stock provides Intel with market capitalization of $101.3 billion, which is about 50% more than IBM. Intel reports increases in all of its product lines and demand has continued to increase through September. Other microprocessor manufacturers are continuing to struggle with high inventory levels and lower prices, but Intel enjoys a near monopoly in the microprocessor market.

Semiconductor Devices, Securities, Company sales/revenue, Company sales and earnings, Company earnings/profit, Company Dividends

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Bets are on for Teradyne as Intel brings its chips back; testing-equipment maker forecasts profit surge tied to important client

Article Abstract:

Teradyne has apparently agreed with Intel to provide $200 million worth of advanced semiconductor testing equipment in 1996, reviving a business relationship between the two that had been dormant since 1985. Although company officials decline comment, analysts believe that Teradyne will supply Intel with the equipment necessary to gauge production of its developing 400MHz and higher chip sets. Teradyne lost its competitiveness in the mid-1980s but has steadily improved service and product quality in the 1990s, with dramatic earnings and revenue increases during 1995. Teradyne will concentrate on the development of the Asian, military and automated software testing markets in order to ensure the stability of its recent growth. Teradyne's recent $170 million acquisition of Megatest provides the company with an additional $120 million in annul revenue.

Planning, Mergers, acquisitions and divestments, Semiconductor production equipment industry, Teradyne Inc. (Boston, Massachusetts), TER, Company analysis, Company Acquisition/Merger, Megatest Corp., MDGT

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Strong profit at Intel is likely to be exception; street braces for letdown in quarterly earnings by other chip makers

Article Abstract:

Wall Street analysts indicate Intel will report earnings for 3rd qtr 1996, but most other semiconductor companies have already stated their financial performance will be lower than analyst's estimates. These firms claim surplus inventories, overcapacity and pricing issues are responsible for their deflated earnings. However, 4th qtr 1996 revenues are expected to be buoyed by increasing PC sales during the holiday season, decreasing RAM memory prices and the increasing book-to-bill chip demand ratio. Some analysts caution the industry will not radically reverse poor sales in the 4th qtr 1996 because pricing actions by Intel and dynamic RAM price fluctuations are providing an artificial market boost. Others are convinced that companies in the semiconductor industry will begin posting improved revenue and profit figures.

Analysis, Forecasts and trends, Market trend/market analysis

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