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Tech earnings will show how Silicon Valley is faring in the downturn

Some of Silicon Valley's largest and most important tech companies are about to unveil earnings reports this month that will be eagerly scrutinized by analysts and investors, looking for signs about the future economic health of this region's dominant industry. Many of the profit and sales figures for the first three months of this year are bound to be unimpressive, if not downright dismal.

Few reports will be checked more closely than the one to be issued Tuesday by Intel, the world's dominant maker of chips. "We're all going to be watching Intel," said Craig Berger an analyst with FBR Capital Markets. "Intel is going to be a guidepost for the rest." Intel's semiconductors serve as the brains for a wide variety of personal computers, servers and other electronic gadgets. So when Intel's chip sales dwindle, it signals a possible slowdown in business at other companies that use its products, ranging from giants like Hewlett-Packard to small, off-brand personal-computer makers.

SiliconValley.com

Posted by | Mon, Apr 13, 2009 - 09:15 AM