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Intel Says Business Stinks

The company now expects Q4 revenue to be over 10% lower than its previous guidance

By Maureen O'Gara
Article Rating:
November 13, 2008 10:00 PM EST
Reads:
 3,003

Intel didn’t wait for its scheduled mid-quarter update on December 4. It came out after the market closed this evening and said business stinks. It took down its fourth-quarter projections. The company now expects Q4 revenue to be $9 billion, plus or minus $300 million, over 10% lower than its previous guidance of somewhere between $10.1 billion and $10.9 billion.

The news from the critical bellwether is expected to cast a big black pall over the entire industry.

Intel said revenue is being impacted by significantly weaker-than-expected demand in all geographies and market segments.

Besides that the PC supply chain is aggressively reducing component inventories.

The company figures it can pull out a fourth-quarter gross margin is ~55%, four points less than the ~59% it expected a few weeks ago primarily because of lower revenue and other charges associated with the weaker-than-expected demand environment.

The company's results are due January 15.

Published November 13, 2008 – Reads 3,003
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Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025.

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