Intergraph blames Intel for layoff decision

Intergraph has said its decision to quit the PC business and axe half of the 400 staff at its Computer Systems subsidiary is a result of Intel's failure to comply with a US Federal Court ruling.

Intergraph filed a motion with the District Court in Alabama against the chip giant on 25 August, accusing it of failing to live up to an injunction issued in April 1998 to allow Intergraph access to product samples and information.

But a spokesman for Intel said it had obeyed the ruling. "We have treated Intergraph like similarly situated customers, consistent with the judge's order. We believe the judge will ultimately conclude that we are in compliance with his order," he said.

James Meadlock, chief executive of Intergraph, alleged that Intel failed to provide Intergraph with sufficient data about its Pentium III Xeon chip, costing it a multimillion dollar contract.

"Intel's stonewall tactics are working against us, whether it means to hurt us or make an example out of us for the computer industry," he said.

For its second quarter to 30 June, Intergraph posted a loss of $12.4m.