The Telegraph
Since 1st March, 1999
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Intel sees modest growth in earnings

Penang, Aug. 27 (Reuters): Intel Corp, the world’s No. 1 chipmaker, said on Tuesday it expected modest growth in third-quarter earnings over the preceding quarter.

Intel chief executive officer Craig Barrett gave his cold-eyed assessment of the market for chips while attending a high-tech conference to mark the 30th anniversary of the setting up of Penang as Malaysia’s hub for the industry.

“We see modest growth in the third quarter over the second quarter,” Barrett told a news conference.

“But we haven’t seen much improvement in the computing environment because companies are not investing. When it turns around will be when companies start re-investing, I’m not forecasting when that will happen.”

Earlier this month, Intel said it expected third-quarter revenues would be $ 6.9 billion, compared with an earlier forecast of $ 6.3 billion.

Intel last month posted a net income of $ 446 million for the second quarter, at the lower end of market expectations. It also said it would cut 4,000 jobs or nearly five per cent of its work force.

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