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Intel Corp Q2 revenues plunge 76 per cent

Intel Corporation, the world's largest chip maker, has announced a 76 per cent fall in its net income for the second quarter of this year, hit hard by slack sales of personal computers and a slowing US economy.

The Santa Clara, California-based company said in a statement that its revenue for the quarter ending June 30 amounted to $6.3 billion, while its net income was down 24 per cent at $854 million.

The company's net income will be even lower if one factors in the costs incurred on acquiring other companies.

As per the generally accepted accounting principles, which requires the inclusion of acquisition-related costs, the company's second quarter net income was $196 million, down 94 per cent from the second quarter of 2000.

The Intel statement also reveals that the company's earnings per share also took a beating at $0.03, down 93 per cent from $0.45 in the second quarter of 2000.

"Intel's second quarter results met our overall expectations as our microprocessor business performed better than expected, with sequential growth in units, while our communications and flash businesses remained soft," said Craig R Barrett, president and chief executive officer.

"Looking forward, our strong product line-up and cost-efficient manufacturing capabilities provide Intel with a significant competitive advantage."

The results, which came after the close of trading hours in the US, led to widespread losses in technology stocks in European and Asian bourses.

Even in the US Intel's shares were marginally lower in after-hours trading at $29.67, compared with Tuesday's closing of $29.90 on New York Stock Exchange.

A year ago, the company's stocks were trading at a record high of $75.81.

Analysts said Intel's results also reflect the cutthroat price war with its principal rival, Advanced Micro Devices Inc.

Indo-Asian News Service

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