Tech earnings will show how Silicon Valley is faring in the downturn

Some of Silicon Valley's largest and most important tech companies are about to unveil earnings reports this month that will be eagerly scrutinized by analysts and investors, looking for signs about the future economic health of this region's dominant industry. Many of the profit and sales figures for the first three months of this year are bound to be unimpressive, if not downright dismal. After all, the previous quarter, by and large, was horrendous. More critically, investors and Wall Street experts will be looking at how companies describe future quarters, on the watch for any signs that the recession has bottomed out — or at least eased a bit for tech. And the fate of these companies has profound implications for Silicon Valley, which until recently has been less battered by the recession than other parts of the country, primarily because of the tech industry's strength. Few reports will be checked more closely than the one to be issued Tuesday by Intel, the world's dominant maker of chips.