Mixed Results

Intel

Unimpressive Inside



Semiconductor products manufacturer and technology provider, Intel on the

back of record level fourth quarter



results, declared disappointing results for the first quarter of the new fiscal
ended March 2004. Revenues declined 7% sequentially from $8.7 billion to $8.1

billion as against a 20% growth year-on-year. Intel produces the silicon for its

microprocessors, chipset and flash memory components and supplies the computing

and communications industries with chips, boards, systems and software building

blocks, which are considered the ingredients of computers, servers and

networking.

The Asia-Pacific region continued to contribute major portion of revenues:

40% amounting to $3.3 billion followed by Americas, Europe and Japan

contributing 27%, 24% and 9% of the total revenues, amounting to $2.2 billion,

$1.9 billion and $717 million respectively. Net income for the quarter stood at

$1.7 billion, down 20% as compared to $2.2 billion sequentially. Y-o-y, the net

income was up 89% as compared to $915 million. Revenues in the second quarter

are expected to be between $7.6 billion and $8.2 billion. Intel currently trades

at $26 per share.

Microsoft

Window to Growth



Software, services and internet technology provider Microsoft announced the

results for the third quarter ended March 2004. The company reported revenues of

$9.2 billion, up 17% over the corresponding period of last year but down 9%

sequentially. The net income in the third quarter stood at $1.3 billion, down

39% y-o-y and 15% q-o-q. The company witnessed a decline in sales of Mobile and

Embedded devices by 3% q-o-q to $61 million and Home and Entertainment revenue

was down by 58% to $530 million. The Client Segment, which comprises Windows

Operating System, saw a 4% decrease in revenues to $2.9 billion. Server

platforms segment with the windows Server grew 2% sequentially to $2.2 billion.

Microsoft’s portal MSN that includes subscriptions and the network of Internet

products and services witnessed 8% growth to $591 million whereas revenues from

Business Solutions division fell 19% to $153 million. Going forward, Microsoft

expects to earn revenues of $8.9 billion to $9 billion for the next quarter

ending June 2004. The company expects to earn revenues of $37.8 to $38.2 billion

for the full year. The share of the company is traded at $26.

Advanced Micro Devices

Improving Results



California-based chipmaker Advanced Micro Devices registered a slow but

steady growth during the first quarter ended March 2004. The company reported

revenues of $1.2 billion as compared to $1.2 billion in the immediate previous

quarter. For the same quarter in the previous year, the revenues were up 73%

compared to $714.6 million. Net income was up marginally to $45.1 million, up

4.4% sequentially as compared to $43.2 million. The computation product segment,

which includes PC processors and chip-sets contributed 46% of the total revenues

earned during the first quarter amounting to $571 million, down 2% as compared

to $581 million earned sequentially. Revenues for sale of memory products that

includes the flash memory products amounted to $628 million, registering 11%

growth as compared to $566 million in the preceding quarter, contributing 51%.

The company recently announced that AMD64 processors would combine with the

Windows XP Service Pack to help computers to withstand attacks from certain

classes of viruses and worms. AMD currently trades at $15.

eFunds

Cashing In



eFunds Corporation is a provider of transaction processing, risk management and
professional services to financial institutions, electronic fund transfer

networks, e-commerce providers and government agencies. For the quarter ended

December 2003, Arizona based company registered a mere 2% growth in revenues

amounting to $135.2 million as compared to $133.1 sequentially. Y-o-y, the

company revenues were up 3% as compared to $131.6 million. eFunds electronic

payments business segment, contributed 37% of the total revenues earned during

the quarter amounting to $50.2 million, up 11% sequentially. Revenues form the

ATM management services segment amounted to $33.4 million, down 8% sequentially,

contributing 25% followed by the decision support and risk management segment

contributing 24%, amounting to $32.2 million, down 7% sequentially and the

professional services segment contributing the balance 14% of the total revenues

amounting to $19.5 million, up 14% sequentially. Net income for the quarter was

$10.1 million as compared to $9.1 million, up 11% sequentially. During the

quarter, eFunds acquired of the assets of Oasis Technology Ltd, a Canadian

software service provider for a total purchase price of approximately $30

million, including a working capital adjustment funded from existing cash on

hand.



The share of the corporation is traded at $16.

Unisys

Expanding In India



Unisys Corporation is a provider of IT services, consulting, systems

integration, outsourcing and infrastructure and server technology in vertical

markets like financial services, communications, transportation and media. The

company reported revenues for the quarter ended March 2004 amounting to $1.5

billion, declining 11% sequentially as compared to $1.6 billion but as compared

to the same quarter of the previous year, the revenues grew 5% from $1.4

billion. The net income for the first quarter stood at $28.9 million,

nose-diving 74% on a sequential basis. This decline in the net income is mainly

due to pension expenses of $22.2 million. On a geographic basis, revenue from US

grew 3% to $682 million and revenue in international markets increased 6% to

$780 million, as growth in Europe and South Pacific offsetting revenue declined

in other international regions. Unisys was awarded a five-year agreement worth

$345 million by the Department of Defense’s Counterintelligence Field

Activity, USA to help develop a system that integrates all counterintelligence

activities of US military services, defense agencies, joint staff and combatant

commands. The company recently announced expansion of its Indian operations

by launching a development center in Bangalore. Employing around 2,000 people,

the center is expected to



provide software development, maintenance, business process outsourcing and
technical help desk services. Unisys currently trades at $31.

Syntel

Unimpressive Results



Syntel, a player in the custom outsourcing IT and ITES solutions space in
addition to providing services like e-Business development and integration,

wireless solutions, data warehousing and e-CRM. For the first quarter ended

March 2004, the company revenues declined 5% form $47.4 million to $45.1 million

on a sequential basis as against a 2% growth year-on-year wherein the revenues

were $44.1 million. The net income stood at $9.3 million, down 14% but up 12% as

compared to $10.9 million and $8.4 million sequentially and year-on-year

respectively. During the first quarter, Syntel’s business segment of

applications outsourcing accounted for 75% of total revenue amounting to $33.8

million, with e-Business contributing 19% amounting to $8.6 million, other

sourcing activities contributing 5%, amounting to $2.3 million and BPO segment

contributing a mere 1% amounting to $0.5 million. Syntel completed the

re-development of www.TheNewsMarket.com, a news video archive and distribution

channel based on Microsoft’s.NET framework targeted primarily at the global

television news community. A team at Syntel’s global development center in

India developed the technology for the project. The company is reiterating 2004

guidance in the range of $198 million to $208 million. The share of the Michigan

based company is currently traded at $20.