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Intel suit to hurt Intergraph

The firm warns that its projected second-quarter revenues will be flat, blaming its lawsuit against the chip giant.

Intergraph said today that its projected second-quarter revenues will come in flat compared with the first quarter, blaming slower-than-expected recovery related to its lawsuit against Intel.

"Based on the current level of cooperation from Intel, Intergraph now expects the revenue recovery to be delayed by an additional quarter," the company said in a statement.

On April 10, a federal judge issued a preliminary injunction against Intel, "intended in part to give Intergraph renewed access to Intel products and information," the company said.

Intergraph's sales dropped because it could not get processors from Intel, according to the company. After Intergraph filed its lawsuit against Intel earlier this year, Intel withdrew its nondisclosure agreements with Intergraph and began to refuse to give advance information on processors to the company.

As a result, Intergraph could not release products at the same time as competitors. The actions even forced Intergraph to delay product releases, the company has alleged.

The effects of the alleged breach will be felt for some time, said Wade Patterson, chief executive officer of Intergraph's computer subsidiary. For example, Intergraph has not provided specific plans on Xeon products because it did not start getting high-level technical information on the chip until after it won the injunction.

Intergraph expects to announce second-quarter operating results on July 23.

(Intel is an investor in CNET: The Computer Network.)