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Intel earnings up

Intel's earnings jumped 117% this quarter and the company announced a two for one stock split, subject to shareholder approval. Intel set new records for microprocessor unit shipments, and sales rose to $6.4 billion for the quarter, compared to $4.6 billion in the same quarter a year ago. "Intel hit on all cylinders in 1996, the 25th anniversary of the introduction of the microprocessor," said CEO Andrew Grove. "Fueling demand in 1996 were a number of factors, including the continued growth of the Internet, the rapid penetration of PCs into emerging markets, the beginnings of a corporate computing upgrade cycle and the increasing role the PC plays as a communications device." Obviously in a celebratory mood, Intel also announced that all US employees would get a $1000 bonus with employees outside the US getting getting bonuses "adjusted to reflect pay rates" in those countries. The only dark note was a warning that profits for Q1 1997 were expected to be flat as research and development costs rise an expected $48-60 million above the $1.2 billion spent last quarter. Intel stock rose 25 cents to $147 per share in late trading Tuesday

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