Intel ( INTC), the world's No. 1 chipmaker and a Dow component, said it expects modest sequential earnings growth in the third quarter, citing a slowdown in computer equipment spending. Excluding certain items, the company posted second-quarter net income of 11 cents a share. Currently, analysts are projecting a third-quarter profit of 13 cents.

Chief Executive Officer Craig Barrett told reporters at a news conference that he has not seen much improvement in the computer environment because companies are reluctant to invest. Barrett also said that he was not confident that conditions would pick up during the holiday season.

The company's shares, which have lost more than half their value since the start of the year, responded negatively to the news, falling 4.5% to $17.31. The Philadelphia Semiconductor Index was losing 3.7%.

If you liked this article you might like

Ariba Plans to Restate Results Amid Probe

Ariba Plans to Restate Results Amid Probe

RadioShack Sees 13% EPS Growth Over Next Three Years

RadioShack Sees 13% EPS Growth Over Next Three Years

PanAmSat Posts Sharp Rise in Profit

PanAmSat Posts Sharp Rise in Profit

Adelphia Accounting Chief Pleads Guilty

Adelphia Accounting Chief Pleads Guilty

Skechers Sales Ahead of Plan

Skechers Sales Ahead of Plan