Intel Corp, the world's largest chip maker, has reported first-quarter net income of $647m, down from $1.4bn in the same quarter last year. However, the company said it expects R&D spending in 2009 to reach $10.4bn to $10.6bn. 'We believe PC sales bottomed out during the first quarter and that the industry is returning to normal seasonal patterns,' chief executive officer Paul Otellini said in a news release.