Intel Faces Falling Demand

Updated from April 19

Intel(INTC Quote) met analysts' dampened first-quarter expectations Wednesday but offered a weak outlook for 2006.

The company said that overall sales in 2006 would be down roughly 3% from last year's $38.8 billion in revenue. Earlier this year, Intel had forecast that 2006 sales would increase by 6% to 9%, year over year.

The company cut more than $1 billion from its spending plan for the year and said it was undertaking its most thorough review of internal operations since the mid-1980s. ...