Intel Q4 Worse Than Expected

Intel (INTC) said Wednesday that its fourth quarter, which was already dismal, was actually worse than expected.

The chip giant forecast fourth quarter revenue of $8.2 billion, down 20 percent from the third quarter and 23 percent from a year ago. Intel warned about the fourth quarter in November and forecast sales of about $9 billion. Before Intel’s previous warning, analysts were expecting fourth quarter revenue north of $10 billion. That’s a $2 billion revenue shortfall in two months.

In a statement, Intel cited “further weakness in end demand and inventory reductions by its customers in the global PC supply chain.”

Other guidance from Intel included:

• Fourth quarter margins is at the low end of the 55 percent range Intel provided give or take a few percent;
• Intel will take a non-cash charge of $950 million related to its Clearwire investment. Investment losses will be between $1.1 billion and $1.2 billion compared to an expected loss of $50 million.
• R&D spending will be $2.6 billion, down from previous guidance of $2.8 billion.
• Intel will take restructuring charges of $250 million, in line with expectations.

Intel shares were down about 5 percent in early trading.

• Fourth quarter margins is at the low end of the 55 percent range Intel provided give or take a few percent;
• Intel will take a non-cash charge of $950 million related to its Clearwire investment. Investment losses will be between $1.1 billion and $1.2 billion compared to an expected loss of $50 million.
• R&D spending will be $2.6 billion, down from previous guidance of $2.8 billion.
• Intel will take restructuring charges of $250 million, in line with expectations.

Intel shares were down about 5 percent in early trading.

Comments

[igggy:]

Wow, that's an awesome chart. Seriously, couldn't you put a daily or preferably weekly chart in instead?

Jan 08 12:59 AM