Intel hurt in the 4th quarter due to weak demand and inventory reductions from PC makers. The semiconductor company cut its revenue forecast to $9 billion in November plus/minus $300 million from over $10 million. Now the company only expects revenues of $8.2 billion for the quarter. Intel’s gross margins are also at the lower end of forecasts of 55 percent plus/minus a few percentage points.
The company is also an investor in Clearwire’s WiMAX technology which contributed to a $950 million charge and overall equity investment losses of $1.1 to $1.2 billion. Much, much, much higher than previously expected $50 million losses.
All in all, Intel’s revenues are down 20 percent from the third quarter and 23 percent since 2007’s fourth quarter. The company will officially announce its fourth quarter earnings January 15.
(Image Credit: Intel)