Intel beats the Street: Chipmaker's profit edges estimates.

[Wingznut]

"Chipmaker Intel Corp. on Tuesday reported a second-quarter profit that was slightly better than Wall Street had expected on sales that fell 24 percent from the same period last year.

After the close of trading, the world's largest computer chipmaker said it earned $854 million, or 12 cents per share, excluding acquisition-related costs. That reflects a 76 percent decline in profit from the 50 cents per share Intel reported during the second quarter last year and is 2 cents better than the 10 cents per share analysts generally had expected, according to a survey conducted by earnings tracker First Call.

At $6.3 billion, Intel's second quarter revenue was on the low end of the range executives said they expected at the outset of the quarter and met analysts' expectations. During the second quarter of 2000, Intel logged revenue of $8.3 billion.

The company on Tuesday said the processor business performed better than expected, with sequential growth in units, while the communications and flash businesses remained soft."

CNNfn.com

 

[ToBeMe]

Now this had to suprise a LOT of people! Good for Intel......maybe this will help Nasdaq & my pitiful stocks!

 

[bacillus]

please don't mention stocks as it makes me upset of my recent losses!

 

[ToBeMe]

• BREAKING NEWS from CNN.com
  
  -- Intel Beats Street Estimates. Details Soon.

 

[Snoop]

"The First Call/Thomson Financial consensus estimate for Intel's profit was 10 cents(excluding aqusition related costs*) a share on sales of $6.29 billion."
later in the article
"Including all the charges, Intel recorded net income of $196 million, or 3 cents a share -- down 94 percent and 93 percent, respectively, from year-ago levels."

From intels website, *Acquisition-related costs consist of one-time write-offs of purchased in-process research and development and goodwill, and the ongoing amortization of goodwill and other acquisition-related intangibles and costs. Intangibles include, for example, the value of the acquired companies' developed technology, trademarks and workforce-in-place. Earnings excluding acquisition-related costs differ from earnings presented according to generally accepted accounting principles because they exclude these costs.


My experiance in these types of things is limited, and was wondering if anyone with some accounting experiance could explain what aqusition related costs are.
edit: Also, does intel have to disclose these purchases?

 

[BrunoPuntzJones]

acquisition costs are almost always goodwill (though could include paying off interest on a previous note or something like that). goodwill makes up the largest part as it's what is paid over the firms value (150mil value, paid 220mil for it, so 70mil in goodwill). also any one time fees, costs directly related to acquisition (lawyers fees, document fees, government fees etc) are usually not included in the normal statements but as notes (or included in the statements and given an * to denote that something significant affected the numbers and to read below for more info).

intel should have to disclose most of it, finance related anyway. perhaps not individual project r&d costs but would just lump them together without letting too much info out on it.

 

[KpocAlypse]

Hehe.....Funny how a news event can be reported two different ways....

One....Intel beats the Street: Chipmaker's profit edges estimates.
And...
Two.... News: Intel sees 76 percent drop in income

Now i know why i can't stand watching news, to much dang spinning......Same dang story, two different outcomes.

 

[AmbitV]

Yea they beat estimates but these were estimates that had been previously reduced already. And on a year-over-year basis, looks a little ugly.

 

[Pabster]

You'll find it varies greatly by who reports it It's pretty easy to spot the bias.

Either way you look at it, the semiconductor market is crap. Profits are way down (as well as sales) across the board. Everyone is affected, Intel / AMD alike. You can spin it any way you like (i.e. Intel beats estimates or down 76%) but it's the same. And, yes, those estimates had already been revised several times.