Intel CEO Barrett Expects Better 2005 Start

MANHASSET, N.Y. — Once again unfazed by dismal market forecasts, Intel Corp. chief executive Craig Barrett said Thursday (Nov. 18) he expects the chipmaker to report higher revenue from global operations in the first half of 2005 than in the same period this year, according to several wire service reports. "I'm looking for our performance to be much improved in the first half of 2005 over what it was in the first half of 2004," Barrett was quoted as saying by Dow Jones Newswire. Barrett is in India on a two-day trip that includes meetings with top government officials and a visit to the company's design center in Bangalore, where Intel is considering setting up a manufacturing plant, according to reports. He was quoted as saying Intel hired 800 additional staff this year in India, taking the company's employee strength in the country to 2,400. Considered headstrong by some industry observers, Barrett has shown no signs of backing off from his views, even after announcing last week he would step down as Intel's chief executive next May. Barrett continues to defy forecasts by the Semiconductor Industry Association (SIA) and other market research firms calling for flat growth in 2005. In addition, Barrett has also downplayed Intel's recent weak fiscal performance and several technology setbacks, including abandoning liquid crystal on silicon (LCOS) development and delaying several processors. For the first nine months of this year, Intel has earned $5.4 billion, or 82 cents per share, on sales of $24.6 billion. Analysts estimate the company will have revenue of $33.55 billion for all of this year and $35.18 billion in 2005, according to Thomson First Call.