Intel Warns of Pentium III Bug

Intel Corp., in a confirmation of its second technical glitch in two days, said it has discovered a bug in two versions of its Pentium III Xeon processors for the server and workstation market, a bug that will delay the shipment of servers based on the chip. Intel said it is still shipping the chips--a Pentium III Xeon with a speed of 550 megahertz and a level two cache of 512 kilobytes, and the other with one megabyte of secondary cache. Both chips run in a configuration of eight processors on an Intel motherboard, called the Sabre. Cache is a reserved section of memory to improve performance. Intel said that because it is continuing to ship the chip, which can be used by systems makers with other motherboards, the flaw will not be material to its earnings. Intel sank $2.31 to close at $75.19 on Nasdaq.