Intel warns earnings will fall short

Posted:
in General Discussion edited January 2014
Intel said Wednesday that fourth-quarter business will be below the company's previous outlook. The world's largest chipmaker now expects fourth-quarter revenue to be $9 billion, plus or minus $300 million, lower than the previous expectation of between $10.1 billion and $10.9 billion.



Revenue is being affected by significantly weaker than expected demand in all geographies and market segments, the company said. In addition, the PC supply chain is aggressively reducing component inventories.



Intel's expectation for fourth-quarter gross margin is now 55 percent plus or minus a couple of points, lower than the previous expectation of 59 percent plus or minus a couple of points, primarily due to lower revenue and other charges associated with the weaker-than-expected demand environment.



Spending (R&D plus MG&A) is expected to be approximately $2.8 billion in the fourth quarter, lower than the previous expectation of approximately $2.9 billion, primarily due to lower revenue- and profit-related spending. For the full year, spending is expected to be approximately $11.4 billion, lower than the previous expectation of approximately $11.5 billion.



All other expectations are unchanged.
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