Feeds

Intel rolls eyes at flaccid PC biz, cuts $1bn off expected sales

Wall St warned of Q3 revenue downsize

The next step in data security

Well, it looks like the Intel Developer Forum might be a bit more subdued next week than usual, with the chipmaker cutting its revenue projections for the third quarter, which ends this month.

In a statement announced before Wall Street opened this morning, Chipzilla warned investors that its sales in the third quarter would be between $12.9bn and $13.5bn, down from the $13.8bn to $14.8bn it had been projecting. That's somewhere between $900m and $1.3bn in lost revenues.

With PC sales slumping in part because of slowing economic growth in parts of Europe and Asia and skittishness in the United States and elsewhere, Wall Street had already been anticipating that Intel would not hit the high-end of the range. Analysts surveyed by FactSet had told the markets that they had expected Intel to rake in $14.21bn, but this seems a bit lower than anyone was anticipating.

You can blame tablets and slack demand for Ultrabook alternatives for more than a little of Intel's woes, but you can't blame servers, storage, and switching.

"Relative to the prior forecast, the company is seeing customers reducing inventory in the supply chain versus the normal growth in third-quarter inventory; softness in the enterprise PC market segment; and slowing emerging market demand," Intel said in its statement. "The data center business is meeting expectations."

In conjunction with the revenue cut, Intel also trimmed its gross margin expectations for the third quarter by one point and now says gross margins across all products will be 62 per cent, plus or minus 1 per cent. Intel added that it was backing off on capital spending a bit for 2012 and would now come in at the low-end of its range of $12.1bn to $12.9bn in cash outlays for the year on fabs and wafer-baking gear. Intel said that it would be re-using some of its gear to push down to the 14 nanometer node to save cash.

Intel will report its third quarter financials on October 16. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.