Semiconductor makers are expected to post strong results for the quarter

Article Abstract:

The semiconductor industry, lead by Intel and Texas Instruments, is expected to have strong earnings for the 3rd qtr, 1995, but not all chip makers will benefit from the strong market. Wall Street analysts predict that many semiconductor manufacturers will meet or exceed earnings estimates for the quarter due to strong consumer demand for computers. The Aug 24, 1995 introduction of Microsoft's Windows 95 operating system is credited with increasing demand for Intel's Pentium processor. Intel is expected to post earnings of $1.03 per share for the 3rd qtr, up from $0.76 in 1994. Texas Instruments is also expected to be a big winner, posting earnings of $1.53 per share, up from $0.87 per share in 1994. The industry-wide adoption of the Pentium processor has severely hurt companies such as AMD, which have a glut of older 486 processors. AMD's earnings are expected to be $0.72 per share, down from $0.87 per share in 1994.

Microprocessor Chips, CPUs (Central processing units), Company sales and earnings, Company Earnings/Profit

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Chip executives are cashing in as shares soar

Article Abstract:

The strength of technology stocks in general and sales of stock by executives at several large semiconductor companies are major driving factors behind the recent surge in the stock market. One analyst says five of the six top Texas Instruments executives are making their biggest stock sales ever, including one director, William Weber, who sold 67,170 shares on Apr 25, 1995, when the stock closed at $101.25. All these transactions involved stock options, most of which had been held for several years and were not close to the expiration date. Nine executives at Sun Microsystems Inc sold a total of 180,000 shares in Apr 1995, including VP John Shoemaker, who sold 48,000 shares at $37.50 on Apr 21. Seven insiders at Intel Corp sold a total of 245,544 shares in Apr 1995. Analysts say the stock sales do not indicate trouble for the companies.

Sun Microsystems Inc., SUNW, Securities, Company securities, Stock

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Chip industry expects weak results as customers rely on excess inventories

Article Abstract:

Analysts forecast little or no growth in semiconductor industry for 2nd qtr 1996, citing the fact that many chip customers are depleting their excess inventories to ensure a reduced overhead. The depressed projections continue a downward trend that has effected the industry since late 1995, when computer vendors' inventories swelled on unexpectedly low sales. Cyrix, Altera and AMD have each indicated that their profits will decline in the quarter, but several companies, lead by Intel, are expected to post increased earnings. Intel's estimated 80% to 87% share of the semiconductor market removes the company from the traditional market pressures that the majority of its competitors face. AMD and Altera each anticipate posting a 15% drop in revenue for the quarter, and Cyrix projects that it will lose approximately $15 million.

Forecasts and trends, Industry trend, Altera Corp., ALTR, Cyrix Corp., CYRX

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