Intel Corporation reported a 29% drop in earnings for its second quarter with earnings of $1.2 billion (66 cents a share) on sales of $5.9 billion.

"We had a higher than normal inventory write-down that hurt margins as we tightened cost controls," said Intel's CFO Adam Bryant.

Intel also attributed a slight downturn in microprocessor shipments to the reduced earnings, while shipments of Ethernet hardware rose "significantly." Economic problems in Asia were also blamed