Intergraph Corp says it expects to see a $25m shortfall in revenue from its worldwide hardware business versus its second quarter plan, which will produce a significant adverse affect on its second quarter earnings. The company is due to report on July 26. CEO Jim Meadlock said the problem was that the company’s current workstation and server lines were not sufficiently differentiated to overcome the impact of Intel’s actions against Intergraph. We have resized the computer hardware development and sales organizations in line with the level of hardware orders and revenues being generated. This will result in an additional $3m charge to earnings in the second quarter, he said. The company will see an $11m gain from the April sale of its InterCAP Graphics Systems Inc subsidiary to Micrografx Inc (CI No 3,643).
