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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: sea_biscuit who wrote (132863)	4/18/2001 4:14:07 PM
From: Road Walker	Respond to of 186894

Intel Corp (INTC) Apr 18, 2001 15:53 ET INTERVIEW-Intel to rely on new products, regiona By Esmat Salaheddin CAIRO, April 18 (Reuters) - Intel Corp. INTC.O> hopes that new products, regional growth and spending cuts would improve results in the second half of the year, a company executive said on Wednesday. On Tuesday, Intel reported a steep drop in first-quarter net income, but the results were slightly better than expected and the world’s largest chip maker offered upbeat comments about the second half. "We have our strongest roadmap ever," Maria Marced-Marting, vice president of Intel’s Sales and Marketing Group, told Reuters in a telephone interview. "We introduced a number of new products in the first quarter, and are on track to introduce.. (more) in the second quarter. "We believe we regained market segment share in chipsets and do not see a build-up of chipset inventories," said Marced-Martin, who is also general manager of Europe, Middle East and Africa (EMEA). She added that Intel was focusing on new technologies like the 0.13-micron and 300 mm process technologies, and mobile 0.13 products by mid-year, and Pentium 4 processor products in the last quarter of 2001. Intel sold its millionth Pentium 4 processor, which was first launched in November, during the first quarter, she said. "We are experiencing robust production yields, enabling the accelerated introduction of the 1.7 GHz version (of Pentium 4), and remain on track for this to be our fastest ramping micro-architecture ever." Intel said net income fell 82 percent to $485 million, or 7 cents per diluted share, in the quarter ended March 31, from $2.7 billion, or 39 cents a share, a year earlier, due to weak demand and slowing economic growth. SUPPORT FROM REGIONAL GROWTH Marced-Martin said the EMEA region, which accounts for about a quarter of the company’s $6.68 billion revenue, experienced a slightly lower decline. She said that revenue generated from the region fell 22 percent in the first quarter from the fourth quarter of 2000, compared with the worldwide average decline of 23 percent. Sales in eastern Europe and the Middle East alone grew about 20 percent in the first quarter, industry sources said. "Europe has been affected by the overall economic situation. However, the Middle East and eastern Europe have contributed in a positive way to our overall resources," she added. Intel does not provide a breakdown of results per region. The company reiterated its plans to spend $7.5 billion this year on capital spending and $4.2 billion on research and development. Company officials said the capital spending was going to exceed the target, but now Intel would abide tightly by its Page 1 of 2 plans. "We are on track to meet our target of $7.5 billion in capital spending to ensure leading edge, cost-competitive products," Marced-Martin said. "We are committed to company-wide cost reduction programmes and our discretionary spending targets are aggressive." The company, based in Santa Clara, California, said sales in the quarter fell 16 percent to $6.68 billion from $7.99 billion. By 1540 GMT, Intel’s shares rose $4.88 to $30.9 on Nasdaq. Intel’s two most senior executives, and Marced-Martin, expressed optimism about the second quarter despite a slowing U.S. economy, weakness in other parts of the globe and waning spending on information technology. She echoed her colleagues forecasts of falling inventories as a sign of improved turnout. "We believe our Intel Architecture business has bottomed out and is returning to seasonal patterns." Page 2 of 2