View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
January 21, 1997updated 05 Sep 2016 1:07pm


By CBR Staff Writer

Underlining the extent to which Intel Corp has to be valued these days as a monopoly rather than as a semiconductor manufacturer, there is no joy from the company’s recently divorced partner VLSI Technology Inc (the two broke up a joint venture on low power consumption chips and chip sets for portable computers last year). The San Jose company’s shares tanked mightily late Friday, losing over 25% of their value, after the company projected that revenues in the 1997 first quarter would be equal to or below the fourth quarter of 1996. The news followed announcement of a loss for the fourth quarter of $63.6m on flat sales of $183.6m. In the 1996 first quarter, VLSI did $3.2m or 7 cents a share, on sales of $167.7m. Analysts reckon that the chipmaker is suffering in three of its four business areas, with computing suffering from the manifest and manifold woes at major customer Apple Computer Inc. Its digital entertainment sector is seen as facing stiff competition from SGS-Thomson Microelectronics NV, while its Compass software unit is also in pain. The one bright spot is the wireless communications chip business, which continues to benefit from the insatiable demand around the world for cellular telephones and service. But the company is at an awkward and vulnerable size.

Content from our partners
Scan and deliver
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.