Zeev's Turnips Patch-No Politics (ZEEV)

[wstera2]

16:27 ET Intel capex cut driven by construction savings (INTC) 16.52 +1.42: -- Update -- It's notable that Intel says the majority of its capex reduction is due to cost savings with ongoing construction projects; Intel noted on its last earnings conference call that it could drive capex savings through savings on construction projects, and that appears to be the case here. There is an important distinction between capex savings due to reduced investment in new semi equipment and due to construction savings. The news here is not as bad for semi equip cos as it appears at first glance.

16:22 ET Intel guides Q4 revs below consensus, cuts 2002 capex & gross margin forecast (INTC) 16.52 1.42: -- Update -- Expects Q4 rev to be $6.5-$6.9 bln, vs consensus of $6.9 bln, and expects 2002 capex to be about $4.7 bln, lower than the previous expectation of between $5.0-$5.2 bln. Gross margin for 2002 is expected to be about 49%, near the low end of the previous expectation of 51%.