Wednesday, January 07, 2009

Did Intel Disclose Or Just Titillate

Intel (INTC) issued a schizophrenically focused press release today. They announce revenues are down sequentially 20% and 23% looking at comparable quarters. Margin estimates are coming in around 55% which is at the lower range of expectations and R&D spending is down by 200 million. But wait Intel says they are now going into their quiet period and at the same time they are reviewing their quarterly results. Conference call scheduled for Jan 15, 2009.

This whole quiet thing is always a problem and Intel wanted to have the last word before the rumours start flying. They have painted themselves into a corner because to come out just one week after this announcement with major changes is incomprehensible. So for Reg FD and other regulatory purposes was this disclosure? It becomes quite the tar baby when you think through all the ramifications.