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Re: Dan3 post# 23523

Friday, 12/30/2005 7:31:01 PM

Friday, December 30, 2005 7:31:01 PM

Post# of 151706
Some INTC numbers...
Dan was wondering what $2.5B marketing expense would do to INTC earnings...
Last 12 months INTC MG&A was about $5.3B. INTC profit was about $8B. Assume first half is for the mobile and media "Core" and "ViiV" launch and then second half is for the desktop Pentium/Celeron replacement. This means about half the MG&A budget could go for the new campaign. Even if only a quarter does and they need another $1B from "profits" to cover it that is only about a 10% hit to profits versus ttm. Growth next year had better be at least this number for the stock to appreciate at all anyway.
--Alan
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