Intel quarterly profits slashed

Officials for the company said that first quarter income, excluding acquisition-related costs, was $US1.1 billion. Earnings fell from $US0.43 per share to $US0.16 per share, a decrease of 63 per cent from the first quarter of 2000. Revenue fell 16 per cent to $US6.7 billion.

The results beat by one penny a consensus estimate of analysts polled by First Call/Thomson Financial.

Intel's guidance to its investors for the second quarter of this year is to expect revenue to come in between $US6.2 and $US6.8 billion, Intel spokesman Howard High said.

Craig Barrett, Intel's president and CEO, said Intel's chip business "appears to have stabilised, and we expect to see normal seasonal patterns going forward from our current business level."

Barrett's outlook for Intel's communications businesses was less rosy. "In our communications businesses, we are expecting continued softness," Barrett said in a statement.

High said the weakness in Intel's communications businesses could be traced to "inventory issues and volume issues" with communication infrastructure companies such as Cisco, Nortel Networks, and Lucent .

Despite its lowered earnings report, Intel continues to invest heavily in next-generation processor technology, according to a report by Cahners In-Stat Group, an industry think tank. Intel's capital expenses were $6.7 billion in 2000, and will grow to $US7.5 billion this year, according to the report.

In the short term, the chip maker plans to aggressively market its Pentium 4 processor by discounting prices down to what the company calls "mainstream" price points. For Intel, a mainstream price point for a Pentium 4 chip is a price low enough to allow PC makers to build a $US1,200-$US1,500 PC around it, according to officials.

"We want to prepare so that when the recovery comes, we want to jump on it from day one, so that with every opportunity we can seize it," said High.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dan Neel

PC World
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?