In another sign that the worst of the economic downturn might have passed, Intel said on Tuesday that the personal computer industry had bottomed out in the first quarter of the year.
Intel Chief Executive Paul S Otellini said, “The worst is now behind us.”
The company, which makes computer chips, reported that net income in the first quarter fell 55 per cent from a year ago. It forecast modest growth in the coming months, but industry analysts said that a rebound would be anything but sharp and fast.
Otellini said in the company’s earning announcement, “We are seeing signs that a bottom in the PC segment has been reached.” He also said that consumer demand remained relatively stronger than corporate demand and that the demand in United States and China appeared to be recovering more quickly than in Europe, Japan and emerging markets around the world.
Intel reported that its net income fell to $647 million, or 11 cents a share, from $1.44 billion, or 25 cents a share, in the year-ago quarter. The company reported sales of $7.1 billion, down 26 per cent from $9.67 billion, reported a year ago.