I should spend more time reading the 10Qs and would probably not be disappointed as much. Upon closer inspection, it looks like Q1 was the beneficiary of $19M in processor sales at 100% margin that had previously been written off. They also recognized a $7M gain in other income/expense that helps explain this quarters reversal in that category. The intergraph settlement was taken in Q1 and offsets the two above items. However, that still nets to a positive $17M in last quarters earnings that apparently were non-repeatable. Does not seem like much, but adds up to 4 cents. If we were starting of a base of $.08 in Q1, it would make this quarters numbers a little more bearable.
The big surprise that is not explained remains the $10m degradation in the other/catch-all category. No idea what is going on there.
One bright spot, I think they said cash flow from operations was $240M for the quarter, up from the $206 level in Q1.
The 10Q quotes are below:
The increase in gross margin from the fourth quarter of 2003
was primarily due to a richer product mix and higher average selling prices for both our microprocessor and Flash memory products in the first quarter of 2004.
In addition, $19 million was realized from the sale of microprocessor products that had been previously written off, offset by a charge of approximately $9 million related to our settlement of an alleged patent infringement dispute
with Intergraph Corporation relating to our microprocessors
Interest income and other, net, of approximately $11 million in the first quarter of 2004 increased from $9 million in the fourth quarter of 2003 and from $7 million in the first quarter of 2003. The increase was primarily due to
a gain of approximately $7.2 million from sales of equity investments in the first quarter of 2004
