Feeds

Intel to miss Q4 targets

Cancelled orders and sluggish demand

  • alert
  • submit to reddit

Protecting users from Firesheep and other Sidejacking attacks with SSL

Intel today warned sales in the fourth quarter would be lower than expected.

The chip giant issued a statement after the market closed saying that due to slowing demand for PCs, it would not hit the expected four to eight per cent growth on Q3.

"As a result of recent large cancellations by customers worldwide, the company now expects revenue for the fourth quarter to be flat, plus or minus a couple of percentage points, with third quarter revenue of $8.7 billion," the California company added.

Intel said it expected gross margins for the fourth quarter to stay at around 63 per cent.

The announcement followed fellow chipmaker National Semiconductor today topping revised estimates for the second quarter, but also warning that sales would fall in its next quarter.

The chipmaker reported $106.7 million net income for the period ended November 26, compared to $92 million the previous year. Sales rose to $595 million from $514 million. The announcement followed a profit warning in October.

But NatSemi said it saw sales dipping by as much as ten per cent in the third quarter from the second, largely due to inventory adjustments in the distribution channel and seasonal weaknesses in the PC and peripherals market. Gross margins may drop to between 47 per cent and 48 per cent from the company's current 50 per cent.

Brian Halla, NatSemi president and CEO, said the company had seen a "respectable quarter...despite the impact of inventory corrections by some of our customers in the mobile phone market and slower demand in the PC market."

The chipmaker said it expected market conditions to pick up at the end of the calendar year as its wireless handset customers and distributors met their year-end inventory targets.

"As a result...we are now expecting overall sales for the current fiscal year, which ends May 27, 2001, to improve in the range of 10 percent over last year," said Halla.

The company is also aiming for gross margins of 50 percent for the full fiscal year.

Computer makers Gateway and Apple have both cut sales targets for their fourth and first fiscal quarters respectively in the past week. ®

Related Stories

IBM preps Itanium workstation
Intel US finally catches up with Europe
Intel to cut P4 prices by 19 per cent
NatSemi issues profit warning

Website security in corporate America

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.