Intel Reports $20-Million Loss in 2nd Quarter

Intel Corp., a Santa Clara, Calif., maker of semiconductors, reported a loss of $20.3 million on revenue of $305.2 million for the second quarter of 1986. Intel, which earned $9.2 million in the second quarter of 1985, blamed continued softness in the computer industry for its deepening losses.

Intel said its losses for the first half of 1986 total $42.5 million on revenue of $585.2 million. For the first six months of 1985, Intel earned $20.1 million.

Although Intel said new orders for semiconductors have increased steadily over the last 12 months, the company has suffered a sharp erosion in revenue, compared to a year earlier. Intel’s revenue for the first half of 1986 was down 20.4% from the $735.3 million that it earned during the first half of 1985.

Analysts said Intel’s loss was wider than anticipated, and they attributed it to increased operating costs and costs related to the development of several new semiconductors. They said they expected Intel to show signs of profitability by year-end.

However, Intel Chairman and Chief Executive Gordon E. Moore said he expected “it to be difficult to make progress due to the excess capacity in the semiconductor industry and softness in the computer industry, our main customer.”