Chip giant Intel this week reported first-quarter income of $US1.1 billion before unusual items, down 64 per cent from a year ago, but said its microprocessor business appears to have stabilised.
Revenue for the quarter, which ended March 31, was $US6.7 billion, down 16 per cent from last year, Intel said in a statement.
The income figure translated into earnings of $0.16 per share, down from the $0.43 Intel posted during the first quarter of 2000, and down 58 per cent from the immediate prior quarter.
"Our microprocessor business appears to have stabilised and we expect to see normal seasonal patterns going forward from our current business level," said Intel's president and chief executive officer, Craig Barrett. The company's communications business continues to see softness, he said, but investments in new manufacturing technologies provide a good foundation for the future.
Just last month, Intel lowered its revenue expectations, as well as announcing it would lay off 5,000 of its nearly 87,000 workers because of lagging sales of microprocessors, especially those used in servers.
At the time, the company said it expected its revenue to be down 25 per cent from the previous quarter, while it had previously said it expected only a 15 per cent decrease.