Intel Net Drops, To Cut Jobs

Semiconductor giant Intel Corp on Tuesday reported a 36 per cent drop in first-quarter earnings and plans to cut 3,000 jobs, citing weak demand in the Americas, Japan and Europe. Intel also said its expects second-quarter revenues to be flat to slightly lower in the second quarter, from first-quarter revenues of $6 billion. Intel reported first-quarter earnings of 72 cents a share, down from $1.10 a share in the year-ago quarter, including a one-time charge of $165 million, or 9 cents a share, associated with its acquisition of Chips and Technologies Inc. Excluding charges, Intel s per share earnings were 81 cents and beat Wall Street expectation of 72 cents a share. Last month, Intel pre-announced a Q1 earnings shortfall. Net income fell to $1.3 billion from $2 billion a year earlier and $1.7 billion in the fourth quarter. Revenues fell to $6 billion, down 7 per cent from $6.4 billion a year ago as weaker demand hurt revenues in the Americas, Japan and Europe. This was a disappointing quarter, Intel chairman Andrew Grove said. The PC industry seems to have gotten ahead of itself, building more product than end-customers purchased. Intel said attempts would be made to place employees affected by job cuts in other parts of the company.