Feeds

Intel figures take kicking in Q4

PCs to blame

Internet Security Threat Report 2014

Chip maker Intel said before Wall Street opened this morning that its sales in the fourth quarter of 2008 were going to be even worse than the company had already warned they would be. The company also said that it was writing off a chunk of its investment in WiMax service provider Clearwire, which will also whack its books for last year.

The drop off in sales in Q4 is not unexpected, given the state of the global economy. Corporations and consumers alike are cutting back on spending, and being the dominant supplier of processors for PCs and servers in the world means Intel gets hit hard when the economy goes off a cliff. In a statement, Intel said that its sales fell because of "further weakness in end demand and inventory reductions by its customers in the global PC supply chain".

With new "Nehalem" server processors around the corner at the end of this quarter, it is likely that server makers were also curtailing the acquisition of older Xeon processors and related chipsets and motherboards from Intel, too.

Intel is now projecting that its fourth quarter sales will be $8.2bn, which is down 23 per cent from the year-ago quarter and down 20 per cent from its third quarter. Back in November, Intel had revised its guidance for the quarter downward to somewhere between $8.7bn and $9.3bn in sales.

Making matters worse, Intel says that its investment in WiMax service provider Clearwire has been hit by that company's declining stock price, and that it will take a non-cash charge to earnings in the fourth quarter of $950m. Intel was projecting back in November that it would have a $50m loss from equity investments and interest, and now it says that loss will grow between $1.1bn and $1.2bn.

Intel reports its financial results for the fourth quarter on January 15. ®

Intelligent flash storage arrays

More from The Register

next story
Chipmaker FTDI bricking counterfeit kit
USB-serial imitators whacked by driver update
Xperia Z3: Crikey, Sony – ANOTHER flagship phondleslab?
The Fourth Amendment... and it IS better
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Microsoft to enter the STRUGGLE of the HUMAN WRIST
It's not just a thumb war, it's total digit war
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.