Intel reported a steep decline on April 14 in first-quarter net profit. The company said net profit in fell 55% to $647 million compared with the same quarter last year.
"We believe PC sales bottomed out during the first quarter and that the industry is returning to normal seasonal patterns," Intel president and chief executive Paul Otellini said. "Intel has adapted well to the current economic environment and we're benefiting from disciplined execution and agility," Otellini said. "We're delivering a product portfolio that meets the needs of the changing market."
First-quarter revenue fell 26.2% to $7.14 billion, better than the $6.98 billion expected by Wall Street analysts and the $7 billion previously forecast by Intel.
"Business sales of all types are going to be constrained for a while," Otellini said. "Enterprise budgets are locked down pretty tight."
Citing "current uncertainty in global economic conditions," Intel declined to provide a revenue outlook for the current quarter. "For internal purposes, the company is currently planning for revenue approximately flat to the first quarter," it said.
Market research firm Gartner Inc. reported last week that worldwide semiconductor revenue fell by more than 5% last year to $255 billion and could face a "far worse" decline this year.
Gartner said Intel retained its number one position last year for the 17th consecutive year and increased its market share to 13.3% although its revenue declined 0.5% to $33.8 billion.
Copyright Agence France-Presse, 2009
