Intel CEO says PC sales ‘bottomed out’

Intel reported a steep decline on Tuesday in first-quarter net profit but the head of the world’s biggest computer chip-maker said he believed personal computer sales had “bottomed out.”

The Santa Clara, California-based company said net profit in the first three months of the year fell 55 percent to 647 million dollars compared with the same quarter last year.

Earnings per share were 11 cents, better than the three cents per share expected by Wall Street analysts.

“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 in a statement.

“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 26.16 percent to 7.14 billion dollars, better than the 6.98 billion dollars expected by Wall Street analysts and the 7.0 billion dollars previously forecast by Intel.

“Business sales of all types are going to be constrained for a while,” Otellini said in a conference call with analysts. “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.

Intel gained 0.19 percent in trading on Wall Street on Tuesday but lost 5.25 percent to 15.17 dollars in electronic after-hours trading.

Market research firm Gartner Inc. reported last week that worldwide semiconductor revenue fell by more than five percent last year to 255 billion dollars 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 percent although its revenue declined 0.5 per cent to 33.8 billion dollars.
— AFP