Feeds

Intel Q3 results disappoint, outlook cloudy

Caught in PC Doldrums

  • alert
  • submit to reddit

Build a business case: developing custom apps

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

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
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
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.