[Am-info] Intel Issues Glum Forecast

[Fred A. Miller]

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Intel Issues Glum Forecast

In accordance with many analysts' expectations, chipmaker Intel=20
said Thursday that third-quarter sales will be on the low side of=20
the company's previously announced forecast. The company said=20
sales will fall "slightly below the midpoint" of the $6.3=20
billion-to-$6.9 billion range it had offered.

The company issued a statement saying that processor sales are=20
falling below normal seasonal levels and demand for its=20
communications products is "soft." Intel's third quarter ends=20
Sept. 28.

Analysts say a number of factors are behind Intel's bearish=20
outlook. Brooks Gray of Technology Business Research notes that=20
acceptance of Intel's recently launched 64-bit Itanium 2 chip has=20
been limited, that corporate PC spending is down, and that Intel=20
recently slashed prices to fend off renewed competition from=20
Advanced Micro Devices. "There is a lot of pressure on the=20
company right now," Gray says.

Earlier this week, Intel slashed prices on some chips by more=20
than half. In Thursday's trading, Intel's stock price fell $1, to=20
$15.11. Next week, the company will host its twice-yearly=20
developer's forum in San Jose, Calif., where it's expected to=20
announce a number of new products and initiatives. - Paul=20
McDougall

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