Intel's financials fail to excite

Chip giant Intel showed revenues of $6.7 billion for its second financial quarter with profits of $1.7 billion. That shows a rise of 14 per cent in revenues, compared to Q2 1998, while profits rose 49 per cent compared to the same period last year. However, Wall Street had expected Intel to post stronger results, and was a little disappointed by the results. Craig Barrett, Intel's CEO, said that the company had regained market segment share at the low end of the market, while it was moving to the Pentium III faster than any previous chip introduction. Intel forecast that its Q3 1999 revenues will be greater than Q2, with a strong second half of the year. Gross profits will rise from the 59 per cent it showed for Q2, and is expected to reach 60 per cent for the whole year. It will spend $3 billion on R&D in 1999, and the same amount on capital expenditure. ®