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“Are they building out Aurora or something? “
Well this is very interesting, Frankly I see intriguing positives that Intel is focusing the future on machine learning and AI and especially with the deployment of 5g. The question that was asked in the CC about the roughly $300 million charge apparently pertains to the the “Reorganization and Other Charges” of $346 million appearing in the current quarter's P&L statement. According to the CC the charge relates to the reorganization of the Data Center Segment into two separate business units and also ties to Intel Federal which is an Intel wholly owned subsidiary corporation that conducts business with Federal agencies. In other words it appears certain of the assets perhaps manufacturing assets of Intel Federal have become obsolete as a result of the reorganization and values are written off in this quarter. The future results? Promising? We shall see.
George Davis -- Chief Financial Officer
Yeah, let me -- I'll start with the onetime charge. Without going into too much detail, it is related to our high-performance compute activities through our Intel federal. It's crystallized in Q4 at the time that we execute a contract. So that's the reason for the timing.
Pat Gelsinger -- Chief Executive Officer
Yeah, and I would just say the HPC business for us, consistent with the reorg that we just announced, C.J., we just see a huge opportunity for us. As we start delivering our GPU, HPC specialized versions of the Xeon product, we see a great opportunity. The reorg brings more focus on this business. So even though there's a onetime charge in Q4, we see this as a great business for us for the long term and one that just will bring many, many technological market and business benefits.
https://newsroom.intel.com/news-releases/intel-forms-new-subsidiary-intel-federal-llc/#gs.7agnsw
I thought this was the reason.
“Nvidia shares took a sharp drop into the red a shot while ago following a piece by Bloomberg's Ian King saying Tesla's decided to use Intel's technology, from its Mobileye acquisition, to power the large "infotainment" screens in the Tesla sedans, citing multiple unnamed sources. “
http://www.barrons.com/articles/nvidia-drops-tesla-to-switch-to-intel-for-infotainment-says-bloomberg-1506456111
Elmer I hope it is a fair evaluation, however the “advocate general on the case, whose opinion is not binding on the ECJ but often indicates which way the top court will rule, suggested sending the dispute back down to the General Court for another look”.
”The company argued that the antitrust watchdog found the rebates illegal on their face, without considering whether the discounts actually hurt competition. Meanwhile, the commission argued in its decision that it didn't have to prove that Intel actually blocked rival AMD from the market.”
As I recall, and I am not going to look it up. that the rebates were not affected in the final settlement.
So whatever happens, happens. Over, done. Intel continues making money and paying dividends while AMD in their continuity continues to lose money but of course Threaddripper and Ryzen will do what Barflopalona could not do and the hallucinations of the ranting AMD faithful shall be fulfilled.
https://www.law360.com/articles/940358
"AMD has always had more platform continuity generation to generation."
Well if you say so it has to be an AMD absolute, unmitigated, unvarnished, gospel, canonized fact. Anyway on
Wednesday the Court of Justice of the European Union (ECJ) will determine if the previous judgement and I assume the fine should be reversed. I think the below comment in this article is most significant and will bear heavy on the outcome. Sarcastically, as it would reverse Nellie Crow's victorious statement that Intel now supports the European taxpayer.
“An adverse ruling for the Commission on Wednesday could result in a radical review of ongoing cases, said Andrew Ward, a partner at Madrid-based law firm Cuatrecasas.
“A loss in such a high-profile case would be embarrassing (for the regulator),” he said, adding that it might mean that long-established theories and processes would need to be reassessed.”
“Losing against Intel would clearly be a blow to the Commission and a confidence boost for Google, since on the face of it the theory of harm is much more established in the Intel case.”
http://www.oann.com/landmark-intel-judgment-critical-for-other-eu-antitrust-cases/
Dear BoreoSo, Everything about AMD has always been possible and headed
straight up skyward all the way to the moon.Don't you remember however
that they couldn't get their missile up?
"WTFDIK"
Nicely put!
The Dow webpage on the Yahoo Finance Site is:
https://finance.yahoo.com/quote/DOW/analysts?p=DOW
Directly under closing price is line listing Summary Conversations Profile
etc. The old board is now referred to as Conversations. Click Conversations.
I was wrong thare are a number of reponses.
The Yahoo board is found by clicking "Conversations" in the Summary.
But it is not active.
https://finance.yahoo.com/quote/DOW/community?p=DOW
Didn't Hector say these were real smart guys?
“Abu Dhabi Just Dealt a Blow to One of the Hottest Stocks in the Market”
"This is in line with Mubadala's strategy as a financial investor with a long-term perspective, to optimize our shareholding in certain assets and monetize them at the appropriate time," Mubadala spokesman “
https://www.thestreet.com/story/14256965/1/amd-falls-in-premarket-as-abu-dhabi-s-sells-part-of-stake.html?puc=yahoo&cm_ven=YAHOO&yptr=yahoo
Well thank you FPG I feel better now. I wouldn't want him to think that I was spreading propaganda in saying that AMD suing Intel from all appearances looked like a shakedown.
Are you accusing me of being a propaganda machine?
You are right it never got to that point as I recall, been a long time ago and I would like to forget it. It's over and done. I have no desire get back into the details. I am concerned about what lies ahead.
Dear Boreoso, Exactly all of this was brought out during the trial. Can't you remember AMD forced their customers to turn over a stack of documents so high they reached Andromeda? It annoyed their customers so much that one wonders why they would have anything to do with AMD after that.
AMD said they wanted $60 billion they settled for a little over $1 billion. How about a shakedown?
"Herb, you are not Otis's best friend. You are not even his friend. His friends are payed for: "best friend money can buy" referring to Dell. You are no Dell. You are not Otis's friend, guy or buddy. Be glad you are not and get over yourself."
?
How long is this going to go on? He can't say anything more than what
was already said in court that led to the settlement.
AMD's claims ticked off there own customers for pete's sake.
It's over.
I haven't got time to this listen nor rehash all of the AMD claims. It was hashed out in court.
AMD settled with Intel. It is over and done. It is stupid to keep bringing up.
This is taken from the most recent 10 Q filed by AMD.
“The complaint seeks damages allegedly caused by alleged materially misleading statements and/or material omissions by the Company and the individual officers regarding the Company's 32nm technology and “Llano” product, which statements and omissions
the plaintiffs claim, allegedly operated to artificially inflate the price paid for the Company's common stock during the period. The complaint seeks unspecified compensatory damages, attorneys’ fees and costs.” https://www.sec.gov/Archives/edgar/data/2488/000000248817000107/amd0401201710q.htm
I would suggest that you stop making slanderous comments about Intel management. AMD and Intel settled in 2009.
“sleazy decisions made by management”
Who ever made money on AMD save corporate officers?
Are you on the suckers list ?
Ms Kroes joked in her own news conference that Intel would now have to change its latest advertising slogan from "sponsors of tomorrow" to "the sponsor of the European taxpayer".
Need I say more, except I see difficulty in getting a refund.
We shall see.
"I was partly joking anyway."
So was I.
Well I applaud you for your honesty !
I don't want you to foam at the mouth and bite your tongue but maybe you should read this.
What do you think, will EU include interest and perhaps a sizable penalty for damages when they cut the check?
“Intel won backing from ECJ court adviser Nils Wahl last year who doubted if the company's actions had really harmed competition. The top court follows such non-binding recommendations in four out of five cases. “
https://www.reuters.com/article/us-eu-intel-antitrust-court-idUSKBN19L1ZR
Well I applaud you keeping up the faith but expectations were for something better. You can compare sales from a year ago period but I would prefer to look at Q117 as Ryzen was launched in Q117 thereabouts and it would be a better reflection of the impact on market share.
And AMD did not disclose Ryzen sales amount, one could wonder why they wouldn't? Should be noted that Gross Margins in Q217 were 33% and less than the 34% in Q117.
I would point out again that according to AMD the net loss was impacted by a seasonal increase from the semi custom segment else the loss would have been significantly greater.
But keep the faith!
The graphics card and semicustom chip market was rather weak?
$172 million of the $238 million revenue increase from Q217 over Q117
came from the Embedded Semi-Custom segment and according to the Earnings Call was driven by sales due to seasonality.
The remaining $66 million increase in revenues that comes from the Computer and Graphics does not reflect the revenues from computer sales. In the conference call AMD said Radeon RX had a strong quarter so I think it can be assumed at lest a part of the $66 million was not generated by Ryzen sales.
So it would appear to me for the full quarter Ryzen sales were disappointing.
From the Earnings Call
"The sequential revenue gains were primarily based on higher Semi-Custom product shipments due to seasonality"."Revenue was up 44% sequentially due to the seasonal semi-custom ramp".
“Demand for Radeon RX GPUs was strong in the quarter, driven by gaming and cryptocurrency mining”.
"cash I already have at home I keep in some safe places. I don't take cash I have and put in in banks!"
You bring an valid point for investors generally. Why not gold instead of fiat money ? Acording to Jimmie Rogers, bet on Bit Coins?
Frankly I am totally exposed and own no gold and do not stuff cash under the mattress, Certainly would not advertise if I did. But I am concerned because it appears the economy is in a rut with QE spending and lingering interest rates that approach historic lows. Something will give. Maybe, maybe not but I guess it is better to be protected although I am not. I am an old man, don't think I am quite yet senile, born in the middle of the Great Depression.
http://moneymorning.com/ext/articles/bitcoin/jim-rogers-major-crisis-coming.php?from=oo
"only one banging on about "senile old men"
Well the subject matter was brought up previously, but sorry I offended you. I would like to drop this discussion as it has nothing to do with Intel.
"True but I thought I would indulge myself just once."
But you now have done it twice? Who could disagree that humans should learn to get along together, however they never have and the potential to destroy is far worse now than ever before. But now I am indulging. Done!
"Are you happy for them to be controlling what other people read?"
No I am not in favor of censorship. As has been mentioned you can ignore the post.Just that those that express opinions should voluntarily stick to the subjects that involve the chip industry. politics, religion,senile old men etc should be for some other forum.I don't think that is too much to ask for?
I really don't want to enter a discussion about any member. I have participated in and read forums since the Prodigy-Usenet days. I have a thick skin and what is said by others does not bother me and what anyone says can be answered if on point. I just don't think this forum should be sidelined by politics, religion, senile old men etc.
"OT: History Lesson via the Eagles - Last Resort "
" I am pretty sure there are socio-political forums on this site for you to vent your spleen on such matters. " I agree! This forum is about Intel and its future not about silly poems!
I am confused about this as you are but I am confused about a lot of things too. Brian is the new CEO. He's is the one leading and supported by the BOD. I'm an investor and willing to take the risk. Here's what was said during the CC.
Brian
"So when we look at the end of next year, we’ll look how the model SoFIA has built to have no contra revenue."
Stacy
"As we ramp the Bay Trail CR and then the SoFIA products, you’ll start to see the contra dollars per unit come down.We plan to make a substantial improvement in the profitability of the segment next year, but don’t get too far ahead of your SKUs. We’re not at a point that we’ll be profitable next year, it is still our goal, but it will take a little time to get there."
Intel sounds like they are making positive comments with the progress of the Mobile Group. Appears that all the analysis including Covello call the quarter a good one. Stock up after close 70 cents. Looks like good news to me.
Hopefully Tuesday there will be positive comments regarding tablet sales and cost. Krzanich strategy for 40 million tablets it appears will be met and I hope that for 2015 optimistic comments are made pertaining to the remaining part of his strategy and the market sees it as positive.
Tech stocks fell based on the statement made by the CEO of Microchip Technology Inc, a company that apparently does not produce chips for the tablet, phone or computer market. Intel was off 5.09% Friday close.
Intel reports Tuesday afternoon. Intel is in the quiet period now but did not lower the quarter guidance September 12, the beginning of the quiet period. So we will see. I would expect earnings for the current quarter to be respectable. Q4 guidance could be crucial.
AP Photo/Aijaz Rahi) "We believe that another industry correction has begun and that this correction will be seen more broadly across the industry in the near future."
From the article:
"In afternoon trade on Friday, Microchip shares were down 11%, while the SMH ETF that tracks the semiconductor sector was down about 5%.
Microchip, with a market cap of $8 billion, is a good-size company, but its warning is affecting companies as large Intel, which has a market cap of over $160 billion and was down as much as 4% on Friday.
Other semiconductor and tech companies under pressure include Texas Instruments (-7%), Micron (-7%), Analog Devices (-5%), Freescale Semiconductors (-10%), and STMicroelectronics (-4%)."
http://finance.yahoo.com/news/heres-ceo-quote-thats-sending-174000843.html
"so do you expect to see anything besides the typical 0%-3% revenue gain guidance for 2015 from Intel mgmt next month?
2015 guidance next month? I doubt it. More likely January 2015. Last year 2014 guidance was given in January, 2014 at "approximately flat". Last quarter guidance for 2015 was raised to,"growth of approximately 5 percent". Intel guidance has historically been conservative. I don't believe that will change. However next month should hopefully provide some interesting insights especially with regard to contra revenue. I have to admit that I am somewhat perplexed about that but Intel is committed to the tablet market. According to IDC's last forecast there will be 233.1 million tablets sold this year.
Intel CEO said this during the Citi 2014 Global Technology Conference Sep. 3, 2014 in response to the following question regarding the $1 billion per quarter loss:
"But how long, in your mind, can you let that go at that rate before having to change that?
His answer was as follows:
"So, we think we can dramatically reduce some next year as we go into ’16. We think they can be either very small or zero. So that’s kind of my view of how long it should last but it shouldn’t be $1 billion a quarter as we go through next year though."
I guess we will have to wait and see. Whatever you are set on for next year then that is your priviledge. Good luck to you!
http://seekingalpha.com/article/2468475-intels-intc-ceo-brian-krzanich-presents-at-citi-2014-global-technology-conference-transcript
"Good luck with that."
Ignorance is bliss!
"I'll stop whining"
Finally!
Time for high fives!
"it helps us prepare for the future with some prudent planning"
I agree!
"In fact, there is no time to be not blissful."
Reminds me of an old joke and a little food for thought.
A fellow fell off the top of 12 story building. On his way down as he fell past the sixth floor a fellow looking out from the inside of the building yelled out, "How are you doing"? The answer came back, a loud and cheerful "Grrreeeaaat, soooo faaaarrrr!
"NY failed, on a technicality.
You are getting ridiculous.
The case was flawed, New York lawyers apparently did not understand the Delaware Statute of Limitations which is absolutely dumbfounding. It was laughed out of court and NY did not refile the case in New York. AMD shot their wad on the ATI buyout, a failed venture from which they have never recovered from and still is a noose around their neck. The paid ATI $5.6 billion. Why didn't they use the money to build fabs capacity instead? The AMD problem was AMD management. Where are those guys now? Still around griping?
Long time has passed to move on! The Statute of Limitations of Good Sense has run out!
Boreoso, you need to look for new waters to troll.
Look Boreoso, when the political motivated maladroit New York lawyers filed their case in Delaware and the judge in his own words said "for whatever reason" referring to New York claiming the Delaware's Statute of Limitations 3 year period should be extended to six years because of "efficiently" reasons, the judge told them that he had no clue what on earth they were talking about and succinctly tossed it. Then New York stuck their tails between their legs and all New York could shake Intel down for couldn't buy enough peanuts to feed the pigeons in Central Park. So how much did that stupidity cost New York taxpayers!
"The statute contains no exception for when a party chooses to file suit in Delaware for purported "efficiency" reasons and Delaware's statute of limitations is shorter than the limitations period of the state in which the claim arose. New York, for whatever reason, chose to file in Delaware, so its claims must be analyzed pursuant to Delaware's forum laws. Those laws, again, require the application of the shorter limitations period of three years. "
http://docs.justia.com/cases/federal/district-courts/delaware/dedce/1:2009cv00827/43139/274/0.pdf?1323343016