Feeds

Intel Q3 results disappoint, outlook cloudy

Caught in PC Doldrums

  • alert
  • submit to reddit

The essential guide to IT transformation

Intel's third quarter results, released on Tuesday, showed profits significantly higher than the previous year, but short of analysts' expectations.

The world's largest chipmaker earned $686m, or $0.10 a share, in the third quarter, compared with a profit of $106m, or $0.02 a share, in the same period last year. Though higher, the company's per share earnings came in well behind analysts' expectations of earnings of $0.13 a share.

Excluding acquisition-related costs of approximately $108m, the company's net income in the third quarter was $768m, while earnings were $0.11 per share. Third quarter revenues fell slightly to $6.50bn from $6.55bn.

The company blamed the shortfalls in its numbers on continuing weakness in the PC market and said that the outlook for the fourth quarter remained uncertain because of global economic uncertainty. Said Craig Barrett, Intel chief executive officer in statement: "Although the industry is experiencing one of its worst downturns ever, we continue to move our technology forward, introducing 18 new processors during the quarter, all on our leading-edge 0.13-micron technology.

"Going forward, we remain committed to investments in new products and technologies, setting the stage for us to emerge even stronger when the economy and demand recover."

On Tuesday, shares in Intel in New York closed up 9 per cent during regular trading, but fell by nearly 13 per cent in after hours trading, shortly after the results were released.

Though still profitable, the firm's results reflect the continuing weakness in the chip industry which is reeling after two years of poor results, partially thanks to slower PC demand and falling processor prices. AMD, Intel's biggest competitor, warned recently that its third quarter revenues would fall $100m short of earlier expectations.

Looking forward, Intel also forecast a possible continuation of the chip industry woes saying that sales outlook for the fourth quarter remained uncertain. It expects revenues of between $6.5bn and $6.9bn for the period. Despite the significant improvement in profits over the same period last year, Intel also lowered its capital expenditure estimate to $4.7bn from earlier estimates of $5bn to $5.2bn. The company said that cost savings within ongoing construction projects would account for most of the reduction in capital expenditure.

© ENN

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.