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Following the sequence of product delays, Intel’s chief executive officer Craig Barrett addressed the company’s management and employees a letter criticizing the company’s execution and vowing for all-out mobilization to bring the company back on track in terms of technology.

Intel Corporation’s latest products, such as Pentium 4 “Prescott” processor, Pentium M “Dothan” processor, as well as some other SKUs, including the forthcoming mobile chipset code-named Alviso, all faced delays because of various reasons. Furthermore, the company had to call back certain Grantsdale and Alderwood (i915 and i925X) chipset products as a result of a flaw with process technology, which cost the firm about $38 million.

The company has never experienced so many product postponements and even though the firm still delivers positive financial results its CEO addressed the technology issues with his letter parts from which are published by web-site.

“I recently spoke to Intel’s senior managers about our execution,” Barrett said in the memo, e-mailed to the company employees on July 21.

“Yes, I spoke bluntly and directly, because to me, there is nothing more essential to Intel’s success than its culture of operational excellence and our performance to values such as discipline, results orientation and customer orientation. I spoke bluntly also because it is part of our culture to address our problems with honesty and to resolve to fix them.”

“Our business is complex, and we have set high expectations for ourselves. Therefore, it is critical that everyone – beginning with senior management but extending to all of you – focus intensely on actions and attitudes that will continue Intel’s strong track record of technology leadership leading to outstanding company performance and satisfied customers,” Barrett said in his memo.

“Finally, I was direct because I wanted senior managers – whose job it is to set expectations to all of you and to provide direction and coaching – to have no doubt about the need to improve our performance.”

“By many measures, Intel is performing well. This past quarter, we did achieve $1.8 billion in profits (up nearly 100% from 2003) as well as higher revenue growth than you'd expect for this time of year, and we gave an outlook for $8.9 billion in revenue for the next quarter – an all-time record, if we reach it. But this just makes our recent problems all the more disappointing--because of what we could achieve if Intel were performing well in all major aspects,” the CEO added.

It is not clear what effect can the letter have on the company’s track-record.

An Intel representative did not immediately return enquiry seeking for comments.


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