Intel Suffers Record Loss During Quarter

Intel Corp., a Silicon Valley semiconductor maker bruised by Japanese imports and a continuing slump in demand, said it lost a record $114.2 million in its third quarter.

The results included a one-time charge against earnings of $60 million to cover previously announced plans to close its plant in Barbados and reduce its components and systems work forces in Puerto Rico, as well as a newly announced plan to phase out its bubble-memory business.

“In the face of a record loss for Intel, we do believe that we have many reasons to be optimistic,” said Charlene Hunter, a spokeswoman for the Santa Clara-based chip maker.

Intel’s quarterly loss compared to a loss of $3.6 million in the same period a year earlier. Revenue rose 4% to $324.1 million from $311.7 million a year earlier.

For the first nine months of the year, Intel lost $156.7 million, compared to a net profit of $16.5 million a year earlier. Revenue slumped 13% to $909.4 million from $1.05 billion a year earlier.

Intel said the loss was aggravated by manufacturing problems and higher research and development, marketing and administrative costs from heavy investments in new products. Also, demand for semiconductors has been in a slump for about two years.

Intel, whose best-known products are the microprocessors for IBM and IBM-compatible personal computers, has not made a profit since the second quarter of 1985. Its previous record loss was $20.4 million in the second quarter of this year.