Intel to speed up shift to Pentium 4

Intel Corp. today reported a 94 percent year-to-year drop in second-quarter net income and said it's planning "a major acceleration" of the ongoing transition from the Pentium III processor to the newer Pentium 4 chip.

Craig Barrett, Intel's president and chief executive officer (CEO), said in a statement that the Pentium 4 is now scheduled to be available at "all mainstream PC price points by the end of the year." The speedier transition is being made possible by better-than-expected manufacturing performance with the Pentium 4 and a production start that was ahead of schedule on the new Intel 845 chip set, he added.

The Pentium 4 was initially released last fall and became available in a 1.7-GHZ version in April. Intel said today that it has been able to get higher yields, faster frequencies and lower unit costs on the chip than originally projected.

The semiconductor maker said its microprocessor shipments as a whole were above expectations in the second quarter, rising sequentially compared with first-quarter levels. But business was weak on an overall basis, with total revenue coming in at US$6.3 billion - down 24 percent from the same period a year ago and off 5 percent from the first quarter.

Profits totalled $854 million excluding some acquisition-related costs, a drop-off of 76 percent from $3.5 billion in last year's second quarter. With the acquisition expenses taken into account, Intel said, net income fell from $3.1 billion a year ago to just $196 million in the just-finished quarter.

The second-quarter showing "met our overall expectations" as shipments of the company's flash memory and communications devices fell off from their first-quarter levels and offset the sequential increase in the microprocessor business, Barrett said. The company forecast that third-quarter revenue will come in between $6.2 billion and $6.8 billion.

Meanwhile, Apple Computer Inc. today reported a net profit of $61 million on $1.475 billion in revenue for its fiscal third quarter ended June 30. Apple said it shipped 827,000 computers in what is traditionally its slowest quarter, but the revenue figure was down almost 20 percent from the same period last year. In the year-earlier quarter, Apple reported earnings of $200 million and did $1.8 billion worth of business.

Matt Berger of the IDG News Service contributed to this report.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Craig Stedman

Show Comments


James Cook University - Master of Data Science Online Course

Learn more >


Victorinox Werks Professional Executive 17 Laptop Case

Learn more >

Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >



Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?