Welcome!

Cloud Expo Authors: Pat Romanski, Liz McMillan, Hovhannes Avoyan, Yeshim Deniz, Udayan Banerjee

Related Topics: SOA & WOA

SOA & WOA: Article

Intel Says Business Stinks

The company now expects Q4 revenue to be over 10% lower than its previous guidance

By Maureen O'Gara
Article Rating:
November 13, 2008 10:00 PM EST
Reads:
 2,923

Intel didn’t wait for its scheduled mid-quarter update on December 4. It came out after the market closed this evening and said business stinks. It took down its fourth-quarter projections. The company now expects Q4 revenue to be $9 billion, plus or minus $300 million, over 10% lower than its previous guidance of somewhere between $10.1 billion and $10.9 billion.

The news from the critical bellwether is expected to cast a big black pall over the entire industry.

Intel said revenue is being impacted by significantly weaker-than-expected demand in all geographies and market segments.

Besides that the PC supply chain is aggressively reducing component inventories.

The company figures it can pull out a fourth-quarter gross margin is ~55%, four points less than the ~59% it expected a few weeks ago primarily because of lower revenue and other charges associated with the weaker-than-expected demand environment.

The company's results are due January 15.

Published November 13, 2008 – Reads 2,923
Copyright © 2008 SYS-CON Media, Inc. — All Rights Reserved.
Syndicated stories and blog feeds, all rights reserved by the author.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.