Feeds

Intel Q3 sales down 25%, income down 96%

But decline appears to have bottomed out

  • alert
  • submit to reddit

Build a business case: developing custom apps

Intel put a brave face on it, but its Q3 sales - described by CEO Craig Barrett as "solid... in a turbulent environment" - showed but a slight improvement over Q2 and a 25 per cent fall on the same period last year. Revenue totalled $6.5 billion, in the middle of the range the company specified in its pre-report forecast.

Worse, its income was down 77 per cent year-on-year and 23 per cent quarter-on-quarter to $655 million (ten cents a share). By comparison, Q3 2000 saw earnings of 41 cents a share.

But those figures exclude one-off expenses, including a share buy-back programme (essential now that Wall Street has wiped out the value of staffers' once-prized stock options), debt write-offs and acquisition costs. Factor those in and Intel's income falls to a mere $106 million (two cents a share), down 96 per cent on the year-ago quarter. This despite having to pay $100 million less tax.

Gross margin was 46 per cent.

Looking ahead, Barrett is "confident" of "moderate" growth in the company's processor and Flash memory businesses. Hardly a ringing endorsement that the company - and the market - is on its way to recovery, but the company reckons its well prepared to reap the benefits when the economy does pick up. It is sticking to its $7.5 billion capital expenditure programme for the full year, and reckons it will have four fabs up and running at 0.13 micron by the end of the year (three are already on stream).

Intel expects Q4 revenue to come in at between $6.2 billion and $6.8 billion, so growth will indeed be "moderate" - though perhaps 'negligible' would be a better word. Gross margin is expected to be 47 per cent.

Intel will issue further guidance on 6 December. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.