Intel sees sales falling 25%, sets 5,000 job cuts

SANTA CLARA, Calif. (CBS.MW) - Intel warned Thursday that its first-quarter revenue would fall 25 percent from fourth-quarter levels, saying the current PC malaise has spread to the networking, communications and server sectors.

The chip giant also said it intends to cut 5,000 jobs as it struggles to adjust to the slower sales climate.

Intel (INTC: news, msgs, alerts) now expects first-quarter revenue to fall 25 percent sequentially compared with previous expectations for a decline of 15 percent.

Also, the Santa Clara, Calif.-based Intel said it would eliminate 5,000 jobs during the next nine months, primarily through attrition. Research and development spending is being cut to $4.2 billion vs. previous plans of $4.3 billion.

Based on fourth-quarter revenue of $8.7 billion, first-quarter sales should be about $6.53 billion.

Analysts surveyed by First Call/Thomson Financial currently expect revenue of $7.4 billion. Official results are expected out on April 18.

Gross margins are expected to contract 7 percentage points to 51 percent, reflecting lowered revenue, the company said.



"We put the <i>fun</i> back into fundamentalist dogma!"

Good.

-MP Jesse

"Idle time is the devil's time. Intel better start working!"

Oh, let's not be so dramatic here. Are you going to hire one of those people? I've been laid off. It's not a big deal ESP. when you have an education and a resume that says "Intel" on it. They'll all go work for VIA, AMD, or some other chip company. The IT industry is DYING for jobs. If you care so much write a letter to Intel.

-MP Jesse

"Idle time is the devil's time. Intel better start working!"

Pigeon is what un non militant folks call over paid underworked military personel

SPUD

I saw the future intel's written all over it

Ya keep to peacekeeping, bombing laced tagets and useing tomahawks real tough job oh ive got a cramp in my finger from hitting the button good god. i very sure your a military contractor big guy have we heard the term classified man tell the world he i work for the military me right here i make the weapons that kill you come on guys... stupid!!!

SPUD

I saw the future intel was written all over it

Yeh, WTF jess, there goes progress! Lowered sales may cause initially lower prices, but eventually, when production goes down, prices will go back up! And technological progress will slow down! If Intel ahd lost those sales to AMD, it would be good for the consumer as Intle would scramble to catch up, but since it is a MARKET slowdown, it hurts us all. And if you had worked for Intel long enough to buy a house, find a job for the wife, for your children to find friends, etc, the move would NOT be appreciated. And unemployment pays what, HALF! How would you settle your mortgage and car payments? I live on cash myself, but that can be hard to do in some areas, especially when you are expected to live a certain type of lifestyle!

Suicide is painless...........

Whatever dude... I DO nothing that has anything to do with classifies material. ALL I do is build and recommend new PC technologies for workstations the military uses. Any joe schmoe can do it. Just forget it. Your obviously all about insults. Go ahead, get your last word in.

-MP Jesse

"Idle time is the devil's time. Intel better start working!"

Ok ill get my last word in if you want me too. By the by what does the military use for processors?

SPUD

Maybe the smarter ones need to shutup and listen to the dumb ones

Lmao

SPUD

I saw the future it gave me a big intel hug

hey, we need you to correct some more grammar for Spud!

<font color=green> I LOVE INTEL. It tastes like chicken </font color=green>

Let's face it though, if Intel is having problems, the economy is having problems. I reallllllyyyy hope it's temporary.

I started a post in the other section about this, and I wonder what Intel's next move will be. I noticed they are increasing their R&D spending, so I wonder if they are going to continue to fight for higher clock speeds or if they are going to finally sit down and release a good affordable processor. The P4 is obviously a half ass release. Hopefully the new version will live up to expectations. The P3 is the same old processor that keeps getting overclocked. That along with the high prices is just extremely unattractive.

Nonetheless, their recent price drop looks good. We now know why they did it.

"I think I brained my damage"

Hey, Defence Contractor Guy! Is the Aurora for real, or just a myth?

If its just a myth, why was the SR-71 fleet taken off service so quickly?

damn! there are too many secrets!


<i><b><font color=red>"2 is not equal to 3, not even for large values of 2"</font color=red></b></i>

Dude, I have NO idea what your talking about. Like I said, All I do is recommend and (to a degree) implement new PC technologies for the DoD. It sounds like Air Force type stuff- give them a call =) I specifically work for the Dept. of the Army.

-MP Jesse

"Idle time is the devil's time. Intel better start working!"

Gosh... all of this over the fact that I said "Good." This place is a soap opera. Hehe.

-MP Jesse

"Idle time is the devil's time. Intel better start working!"

Intel owns Amd!



"Amd cpu...Gone in 2 secs flat, it truly is a fast chip!"

Actually before Intel's news intel stock had gone up about 15 percent and AMD had gone up about 30. Intel has lost alomost all of last weeks gain while amd still has about 20 percent left. Luckily I sold my Intel stock on thursday just below their high after buying in aound 27 so I got my 5 bucks a share. Intel owns Rambus, but rambus, like intel really is pretty lame. They think people will believe what ever they say, and AmdAsspound just proved that they actually do.

ILLEGALISE BULLETS

Oh, and the military rocks. Whoever says otherwise really has no idea what the military in the US actually does, so there for their oppinions on the matter don't really count. And the SR-71 program was stopped because:
1. Fuel cost a lot for that bad ass jet.
2. Sattellights replaced it. One sat. up there could take all the pics the sr-71 could (just about) without burning up fuel or endagering a human life. After all, it was only a spy plane, no guns, hell if it did shoot a gun it's so fast it would probly run into its own bullets.

ILLEGALISE BULLETS

Wgho cares Intel stock is going down so they have to buy something that is worth it

-----------------
"648kb is all the space anyone would ever need!"

Bill Gates, 1980s

There stocks have been goin up for the last little bit same with amd but amd still sitting at a 1.60 a share if you dont beleive me go to a stock ticker site the whole indusrty is slowing down both companies are gonna loose share value.

SPUD

I saw the future it gave me a big intel hug

Cisco is kicking 8000 to the curb!

"Amd cpu...Gone in 2 secs flat, it truly is a fast chip!"

Yo, you should change your sig to: I saw the future - Intel bent me over

I looked all over Intel's page, and in their portfolio of all the companies they held stock in AMD didn't even appear. I think you're just rying to start a rumer. Fact is if Intel bought AMD stock it would make Intel look bad, like they may not be so sure about their own technology. Like I said I think your statement is total BS, and unless you post a link that proves me wrong, I say Intel does not own 30% of AMD stock, or any amd stock at all.

ILLEGALISE BULLETS

They did invest in them as do all companies invest in their competion Microsoft did to corel its not a big deal its the way business works what you think that boeing and lockheed dont have shares in each other ?

SPUD

Just some advice from your friendly neighborhood blue man

Intel does not equal the US economy, and whoever thinks that really need to take some economy classes. Intel created their own problems and now they are having to face it. Sun isn't having problems, nor is IBM or other high tech firms. AMD is eating away at Intel's share at home and abroad.

Intel is all selfish profit oriented motives.

-----------------
"648kb is all the space anyone will ever need!"

Bill Gates, 1980s

I'm not saying it's an uncommon practice for companies to invest in their competition, I'm saying spud is full of crap!! He still hasn't givin a link that shows that Intel owns any AMD stock, he keeps just batting around the question like the unfortunate President Bush. The fact of the matter is that Intel does not show AMD in their holdings and that there's no way they own 30%. Spud was just trying to be all "Intel is great and I'm going to hype them because no one will call me on it" and it didn't work out. That's the way Intel as a company thinks, I will hype my product to be that which it is not and no one will call me on it. Well, Intel and Spud are both wrong. Sorry Spud, try again.

ILLEGALISE BULLETS