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Director Intel in Northern Europe, John Woodget
"We are investing very heavily in the chip business"
 real 28k

Tuesday, 16 January, 2001, 22:20 GMT
Intel results 'better than expected'
intel logo
Intel is warning of sliuggish sales in the next quarter
The world's largest chip maker Intel's fourth-quarter results have just beaten already lowered expectations as it suffered from flagging personal computer sales.

And the company forecast a bigger than usual sales drop of 15% in the first quarter of 2001.

Intel is among the first of the big high-tech companies to report quarterly earnings and, as such, is being closely watched to help gauge where high-tech spending is heading in the light of a slowing economy.

The company said its fourth quarter sales rose 6% to $8.70 billion from $8.21 billion a year ago.

Slowdown or recession?

Intel said its best estimate was that revenue for the first quarter of 2001 would be down 15%, plus or minus several points, from the fourth quarter, due to seasonal factors and the impact of slowing worldwide economies.

Historically, Intel's revenues have fallen about 5% in first quarter from the fourth quarter.

"It's just really difficult to call whether it's a slowdown or a recession," Intel Chief Financial Officer Andy Bryant said.

"There's just an economic blanket over the world right now and we'll see what happens when things pick up again."

Intel shares slipped $0.75 to $31.37 in regular trading on the Nasdaq, before results were released.

The shares have tumbled more than 50% since hitting a record of $75.81 in August 2000.

Intel stock rose to $31-5/8 in afterhours trading on Instinet after the earnings were released.

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See also:

11 Jan 01 | Business
PC market 'weak for six months'
02 Jan 01 | Business
Intel 'to sell consumer products'
20 Nov 00 | Sci/Tech
Intel's Pentium 4 debut
08 Dec 00 | Business
Intel, Microsoft hit by tech gloom
17 Oct 00 | Business
Intel, IBM post solid results
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