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

To: wanna_bmw who wrote (162015)	3/13/2002 12:19:00 PM
From: Tony Viola	Read Replies (1) \| Respond to of 186894

wbmw, Otellini is optimistic (maybe you'd say cautiously?), article today about his speaking in Penang: CORRECTED - Intel hopeful after narrower Q1 forecast-Otellini In March 13 PENANG story headlined ``Intel hopeful after narrower Q1 forecast-Otellini,'' please read in the first paragraph ...the microprocessor maker said on Wednesday..., instead of ...said on Thursday... (corrects day of week). ADVERTISEMENT A corrected version follows. PENANG, Malaysia, March 13 (Reuters) - Intel Corp.'s (NasdaqNM:INTC - news) decision to narrow the range of its first quarter revenue guidance is a signal the business is doing slightly better than it had expected, the microprocessor maker said on Wednesday. Paul Otellini, newly-elected president and chief operating officer of the world's largest chipmaker, said the firm remained optimistic the industry would grow this year after its worst ever year in 2001. Last Thursday, Intel narrowed its first quarter sales forecast to between $6.6 billion and $6.9 billion from an earlier range of $6.4 billion to $7.0 billion. ``That's a fairly strong signal that things are a little bit better than we first thought,'' Otellini said, though he declined to give further details. The Santa Clara, California-based chipmaker expects industry volumes to return to growth this year, tracking typical seasonal trends after plunging to historical lows last year. ``Last year was so poor that it is very likely the industry will grow year-on-year this year just because it's not shrinking,'' Otellini told reporters during a visit to the company's plant in the northern Malaysian state of Penang. ``We are reasonably optimistic about this year. We believe that this year is going to play out in a seasonal pattern the way it has historically except for last year.'' The technology bellwether's expectations of a brighter year underscore budding confidence in financial markets that the U.S. economy is on the path to recovery, buoying global stocks. SECOND HALF STRENGTH Semiconductor sales typically strengthen in the second half and Intel, which derives 80 percent of revenues from personal computers, foresees a repeat of that pattern this year. ``In terms of our capacity planning, that's what we are planning for,'' Otellini said. Record sales of microprocessors, the brains of PCs, during the fourth quarter of 2001 showed things improving, he said. ``That was very comforting to see that level of volume after the abysmal first half of last year,'' Otellini said. ``A lot of that cycle of inventory over-correction seems to have burned off. People are buying computers again.'' Besides seasonal factors, he said he expects market share expansion and the introduction of up to 4,000 new products to drive growth for Intel this year. Malaysia is one of Intel's main manufacturing centres, with a combined workforce of about 8,000 working in a testing and assembly plant in Penang and a motherboard manufacturing facility in northern Kedah state. Intel plans to hire about 600 workers this year to boost its research and development and design activities in Malaysia. A series of pull-outs by manufacturers from Malaysia for cheaper centres like China have raised concerns about the country's ability to attract foreign technology investment. Otellini said he was happy with the reliable infrastructure, tax incentives and ample skilled labour Malaysia offers. ``Much of it is going well in Malaysia and that's why we've been here and that's why we'll continue to stay here,'' he said. Email this story - Most-emailed articles - Most-viewed articles -------------------------------------------------------------------------------- More Quotes and News: Intel Corp (NasdaqNM:INTC - news) Related News Categories: computers, semiconductors, US Market News -------------------------------------------------------------------------------- biz.yahoo.com