(INTC) Intel Earnings: Q1 Net Income Down 55%

Intel (INTC) earnings take a nosedive as Q1 net income dropped by 55% as a result of lower sales margins. Analysts are are informally saying that this is the bottoming out period due to stabilization in the tech industry.

Intel Chief Financial Officer Stacy Smith said in an interview with Dow Jones Newswires on Tuesday:

“We have seen a bottoming, but there still is still a lot of economic volatility out there,”

Intel Corp produces chips for computers, cellular phones and other electronic devices. It’s also now the first tech industry company to post financials for Q1 2009, a volatile quarter given the current economic turmoil.

Intel Corp (INTC), the world’s largest computer-chip maker, reported net income of $647 million, or 11 cents a share, down from $1.44 billion, or 25 cents a share, a year earlier.