Intel Corp (INTC)

[usuck ani knowit]

Who was yapping about that semi turn around in the first half of 2003 just a few months ago?????? AND, remember who's been saying the beach is still cold and rocky?

"Concern About Margins

Mr. Lee expects Intel, Santa Clara, Calif., to report fourth-quarter earnings of 15 cents a share on sales of $6.91 billion. The consensus estimate is for Intel to report earnings of 14 cents a share and revenue of $6.9 billion, according to Thomson First Call. In the year-earlier fourth quarter, Intel posted earnings of 15 cents a share and revenue of $6.98 billion. Intel is slated to report fourth-quarter earnings Jan. 14.

As for the March quarter, one of the slowest periods for Intel, Mr. Lee said the chip giant could forecast revenue to come in anywhere from flat to down 7%.

While declines in the first quarter are the norm for Intel and other chip makers, the analyst, who doesn't own shares of Intel, said gross margins are more of a concern. Margins could come under pressure because of underutilized capacity and processor price reductions, Mr. Lee said. Banc Of America doesn't have an investment banking relationship with Intel."



===>> UAK