Intel CEO says sales up, no inventory overhang
(UPDATE: Adds quotes, background)
By Anshuman Daga
BANGALORE, India, Aug 3 (Reuters) - Number one chipmaker Intel Corp's (NasdaqNM:INTC - news) chief executive said on Friday he expected demand to rebound in the computer industry as an inventory build-up had ended and new technologies offered a fresh impetus to growth.
``In the PC industry, there is no inventory overhang at this time. We are looking for a normal seasonal uptick in PC purchasing behaviour in the second half of the year,'' Craig Barrett told a news conference in Bangalore, India's technology capital.
``We anticipate the second half will be stronger than the first half,'' the chief executive officer said.
Barrett's comments earlier this week on industry prospects during an Asian tour boosted semiconductor stocks, which were already strengthened by an upgraded outlook from Merrill Lynch.
He substantiated his views on Friday in Bangalore, where he placed the emphasis on new products as a driver of growth.
By 1550 GMT, Intel's shares were trading 1.8 percent lower at $31.53.
The world's number one chipmaker, which derives 80 percent of its revenue from computer makers, has been one of the worst affected by the slowdown that hit roughly a year ago.
Barrett said he could not say when robust demand would return, but added that Intel was investing billions of dollars in anticipation of a recovery linked to the spread of the Internet.
``There are some exciting new technologies coming into the market place which could stimulate business,'' he said.
These include the launch of the Windows XP --software giant Microsoft Corp's (NasdaqNM:MSFT - news) new operating system, and Intel's own powerful Pentium 4 processors, he said.
``The permanent robust uptick will happen when the U.S. economy starts to get stronger and the European economy starts to get stronger. I am not in a position to predict when that is going to happen,'' Barrett said.
BOOSTING INDIA
The Santa-Clara, California-based firm last month reported a 24 percent slump in sales to $6.3 billion in the second quarter.
It forecast sales of between $6.2 billion and $6.8 billion in the third quarter, which Barrett has described as ``conservative''.
Intel's CEO is in India for a fleeting trip after visits to other Asian countries, including Japan, Taiwan and Malaysia.
Barrett addressed 500 industry leaders and met influential officials in India. Intel ranks India with Ireland and Israel as the ``three Is'' which offer tremendous potential for growth in technology-linked industries.
Intel, which has about 500 engineers employed in India, will continue to strengthen its presence there, he said. The firm has invested in product development and infrastructure-related work in India and has also funded about 30 technology startups.
Earlier on Friday, Barrett launched a research laboratory that Intel has founded jointly with Infosys Technologies Ltd (NasdaqNM:INFY - news), India's second largest software exporter. |
