From Calculated Risk: Intel Business Deteri0ates Rapidly
On Oct 14th, Intel projected revenue for Q4 2008: Revenue: Between $10.1 billion and $10.9 billion. Then Intel warned on November 12th and lowered their revenue projection to $8.7 billion to $9.3 billion. Today Intel reported a significant miss.
Intel says its fourth-quarter revenue fell 23 percent from the same period a year earlier, missing its previous outlook because of ongoing weak demand and inventory reductions by its PC maker customers.
The Santa Clara-based chip maker also announced a fourth-quarter impairment charge of about $950 million related to its investment in Clearwire Corp.
Intel estimated quarterly revenue of $8.2 billion, below the $8.74 billion forecast by analysts polled by Thomson Reuters.
Intel Corp., which ships about 80 percent of the world's microprocessors -- the brains of personal computers -- also says its gross margin was at the bottom of its earlier expectation of 55 percent plus or minus a few percentage points.
In November, the company slashed its sales expectations by more than $1 billion, to $9 billion, plus or minus $300 million.
The company now expects to record a loss from equity investments of $1.1 billion to $1.2 billion due to the charge from Clearwire. Previously the company forecast a loss of $50 million from equity investments.
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