Feeds

Intel stuns market with Q4 sales miss

Can the Apple Effect trump the AMD Effect?

High performance access to file storage

Lower than expected PC chip sales forced Intel into a rare revenue miss during its fourth quarter. Investors then punished the chip-maker in the after-hours markets, sending Intel shares down as much as 10 per cent.

Intel's Q4 revenue rose six per cent to $10.2bn. That figure, however, fell below a previous forecast provided by the company of fourth-quarter revenue between $10.4bn and $10.6bn. Such a miss indicates that Intel unexpectedly saw sales drop off at the tail end of the fourth quarter.

Intel attributed the sales slide to "lower than expected desktop processor unit shipments and prices."

"2005 was our third consecutive year of double-digit revenue and earnings growth, leading to the best operating results in the company's history," said Intel CEO, Paul Otellini. "Although we fell below our expectations for the fourth quarter, we enter 2006 with exciting new products, such as the Intel Core Duo and Viiv."

It has been quite a while since Intel's chip revenue fell year-over-year, but fall it did during the fourth quarter. Intel's Digital Enterprise Group reported chip sales of $4.93bn, which compares with sales of $5.26bn in the same period last year.

AMD fans will no doubt claim a victory here, saying strong server and desktop chips have finally taken a toll on Intel's bottom line. We'll see if such boasting holds when AMD reports fourth-quarter results tomorrow.

During the fourth quarter, Intel's net income jumped 16 per cent year-over-year to $2.5bn. For the full year, Intel enjoyed a 14 per cent revenue hike to $38.8bn from $34.2bn in 2004. Net income rose 15 per cent to $8.7bn.

Turning back to the fourth quarter, Intel boosted sales in Japan and throughout the Asia-Pacific region, seeing a double-digit rise in revenue. Sales in the Americas, however, dropped 10 per cent while Europe was flat.

Strong notebook sales helped Intel out once again, offsetting the weaker "enterprise" processor sales.

The strength of Intel's mobile chip group was especially apparent when comparing full-year figures. In 2005, Intel moved $8.7bn worth of notebook chips compared to $5.7bn in 2004. By contrast, Intel shipped $19.41bn worth of desktop and server chips in 2005 versus $19.43bn in 2004. AMD's impact seems clear in those figures.

In the first quarter of 2006, Intel expects to pull in between $9.1bn and $9.7bn. For the full year, Intel is looking for revenue to rise between six per cent and nine per cent. Despite winning Apple's "massive" computer business, Intel does not appear to be feeling terribly bullish about the year to come. ®

High performance access to file storage

More from The Register

next story
Seagate brings out 6TB HDD, did not need NO STEENKIN' SHINGLES
Or helium filling either, according to reports
European Court of Justice rips up Data Retention Directive
Rules 'interfering' measure to be 'invalid'
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
Bored with trading oil and gold? Why not flog some CLOUD servers?
Chicago Mercantile Exchange plans cloud spot exchange
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.