Q2 flat or seq. down,Q2 GM lowest for yr at low 50%,GM for yr at low 50%,Q2 expense 5% higher Q1,cut 3K jobs
SANTA CLARA, Calif., April 14 (Reuters) - Semiconductor
giant Intel Corp. on Tuesday reported a 36 percent drop
in first quarter earnings, and said it would cut 3,000 jobs
with revenues expected to be flat to slighty lower in the
current quarter.
The company said its net income fell to $1.3 billion, or 72
cents a share on a diluted basis, from $2 billion, or $1.10 a
share, a year earlier. The current quarter included a one-time
charge of about $165 million, or 9 cents per share.
Intel said its revenues fell to $6.0 billion, down 7
percent from $6.4 billion a year ago. The company said it
expected its second-quarter revenues to be flat to slightly
lower than the first quarter, but that sequential revenue
growth would resume in the second half of the year.
The company said its gross profit margin in the second
quarter is expected to be down a few points from 54 percent in
the first quarter and to be the lowest for the year. Intel said
its expectation for its gross margin for all of 1998 is 52
percent "plus or minus" a few points.
Intel also said it expected to reduce headcount by about
3,000 people over the next 6 months predominantly through
attrition, but also by "localized reductions."
The company said it expenses in the second quarter were
expected to be about 3 percent to 5 percent higher than first
quarter expenses of $1.3 billion.
[With this gloomy forward looking statement., I expect INTC to go back to low 70s again. It's probably a good idea to program to sell as market order tonight. Also, INTC has run up recently, ripe for a fall even if the forward statement is upbeat. Buy on the mistery, sell on history] |
