Intel reported lower revenue and profits for its second-quarter results late yesterday, with net income falling 57pc and turnover down by 13pc on the same period a year ago.
The microprocessor manufacturer, which employs more than 5,600 people in Ireland, announced revenues of US$8bn and profits of US$885m for the second three months of the year. Despite the fall in numbers, the results were better than many analysts expected.
In a statement, Intel said sequential revenue in all of its major regions was below normal seasonal patterns. “Microprocessor unit sales were below seasonal patterns as customers reduced their processor inventory levels to seasonally appropriate levels in a highly competitive pricing environment,” the company commented.
Intel president and CEO Paul Otellini sounded an upbeat note by suggesting that 2006 would see the strongest product line-up in the industry, adding that many of these new products were shipping ahead of schedule. Looking ahead, Intel said it expects third-quarter revenue to be within the range of US$8.3bn and US$8.9bn.
In addition, a widely expected restructuring seems to be in the offing at the company, according to news reports emerging from the US. On a visit to Dublin last month Otellini acknowledged that such changes may have been in the pipeline but did not reveal specifics. Now the reports suggest that Intel’s upper management is being shaken up following the rough results of the past few quarters.
By Gordon Smith