Charlie Glavin
Charlie Glavin
believe both companies continue demand environment expect half intel inventory labor means pc pressure pricing push quite remains slippery slope trend visibility weak
We believe that the PC environment hasn't improved, and visibility still remains quite poor. We expect this trend to continue through the first half of 2001. As a result, we expect pricing pressure to continue between Intel and AMD through Labor Day, as weak end demand and inventory overhang continue to push both companies down the slippery slope of pricing as the only means of leverage.
again aggressive both call changing demand estimates expect gross lower margins mean percent pricing second third weak
We are not changing our estimates today, but do expect to have to lower them again after the call -- both for the second and third quarter. Aggressive pricing and weak demand should mean mid-40 percent gross margins by the third quarter.
both completed difficult double intel poised prior stock technology though traits transition
Though painful, Intel has completed a difficult 1999 transition year, and is now poised to demonstrate both its technology and manufacturing prowess - traits that enabled Intel's stock to double in prior cycles.
degree ended itself knew terms
We knew there were some constraints but not to the degree that it ended up manifesting itself in terms of revenues.
cited demand earnings looking million pcs per revenue share weak
We were previously looking for revenue of $16.1 million and earnings per share of one cent. Weak demand for PCs and flat-panel displays were cited as the culprits.
cash curious entire sell
What's curious on this is that TI does not really need the cash right now to sell off the entire business.
believe channel checks continue cushion easing exposure intel leaving less notebook overall pc pressures pricing relative reveal strongest until
Channel checks reveal PC pricing pressures continue to ratchet up, with no indications of easing until mid-2001, ... We also believe that notebook demand, one of Intel's strongest drivers, has slowed, leaving Intel with less cushion relative to its overall exposure to the PC industry.
believe bright consumer cushion exposure japanese overall pocket provided spot
However, we believe a bright spot for (Silicon Image) was its exposure to the consumer Japanese market, which was a pocket of strength, and has provided some cushion to the overall softened demand.
bad bet buy expect intel itself opportunity realistic reinvent second stay tend time turn work
I was floored by how bad it was. I don't think it's realistic to expect that this is going to work itself out by the second quarter. This is not an opportunity to buy on a weakness. This is a time to stay on the sidelines. Too many things have to go right. Intel has to reinvent itself very quickly, and you tend not to bet that a supertanker can turn on a dime.
address becoming cautious earnings intel lingering
Going into Intel's third-quarter earnings report, we are becoming more cautious about how Intel is going to address some lingering issues.
against appears engaged price
It appears AMD has engaged in a price war, where it is essentially bidding against itself.
although based concerns conditions current october themselves worse
Our October downgrade was based on concerns that are manifesting themselves now, although current conditions are actually worse than we feared,