Intel reshuffles as shares tumble
Intel has had another internal reorganisation but saw its shares fall last week as analysts warned of a chip glut.
An Intel statement said the vendor's executive vice president Frank Gill would retire on 1 June to spend more time with his family. Gill headed Intel's small business and networking unit, which will now be split into several divisions.
The network product division will become a separate business unit reporting direct to the Intel board. The reseller products group, part of Gill's portfolio, will become part of Paul Otellini's architecture business group.
The reseller operation, also part of Gill's empire, will report to Sean Maloney's sales and marketing group.
Craig Barrett, Intel president, admitted that the reorganisation reflected the company's desire to diversify for growth. He said: 'It has become increasingly clear that we must continue to focus on our core Intel architecture and diversify into new businesses if we are to re-energise Intel's growth in the future.'
A recently formed new business group, headed by executive VP Gerhard Parker, will look at growing market opportunities. The group will subsume Intel's digital imaging and video division, internet services operation, business communication products, systems management and home networking operations.
Intel's shares fell by five per cent on 15 May in the wake of a warning by analyst Merrill Lynch, which indicated that the PC market was growing more slowly than expected. Other factors included AMD and Natsemi-Cyrix, which were increasing their production and their share of the entry-level market. Last week, National Semiconductor issued a profit warning and said demand for its products from PC vendors had still not picked up.
A US federal appeals court has told Intel it cannot reach a speedy decision in the chip maker's legal battle with Intergraph.
Intel had asked for a swift conclusion to its appeal against an earlier court ruling. But according to the US Court of Appeals for the Federal Circuit, the vendor must wait until its submission is filed, which could take up to six months.