Feeds

Intel Q3 results disappoint, outlook cloudy

Caught in PC Doldrums

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

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
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.