[Am-info] Intel To Cut 4,000 Jobs As Earnings Drop

[Fred A. Miller]

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Intel To Cut 4,000 Jobs As Earnings Drop

If skittish investors were looking for signs of hope Tuesday from=20
tech bellwether Intel, they didn't get it. The world's biggest=20
chipmaker said revenue for its second quarter ended June 2 was=20
flat year over year at $6.3 billion and down 7% from the previous=20
quarter. Net income, excluding acquisition costs, fell 27% year=20
over year to $620 million. Earnings on a per-share basis were 9=20
cents, down 25% from last year. Wall Street analysts surveyed by=20
First Call had expected earnings of 11 cents per share.=20

The company, which also took a $106 million hit during the period=20
because of its decision to exit the hosting business, says it=20
plans to cut 4,000 jobs in the second half of the year to reduce=20
costs.

Sales of computer chips, chipsets, and motherboards fell during=20
the period, while shipments of flash memory units and Ethernet=20
connectivity products rose, according to Intel. CEO Craig Barrett=20
said in a statement that the company expects a "modest seasonal=20
increase in demand in the second half." Third-quarter revenue is=20
projected to range from $6.3 billion to $6.9 billion. - Paul=20
McDougall

For more, read:
Intel Faces Challenges With Itanium 2 Launch
http://update.informationweek.com/cgi-bin4/flo?y=3DeH7a0Bce7K0Cf20BfS20AR

Advanced Micro Devices Cuts Q2 Estimates
http://update.informationweek.com/cgi-bin4/flo?y=3DeH7a0Bce7K0Cf20BfW50AY

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Fred A. Miller
Systems Administrator
Cornell Univ. Press Services
fm@cupserv.org, www.cupserv.org
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