Intel Lops Off More Than USD 1 Billion In Last Quarter Revenue Expectations

November 16, 2008 by Sanjay

Intel

World leader in silicon chip technologies, Santa Clara, California-based Intel Corporation has lowered its revenue expectations for the fourth quarter (July to September 2008) from USD 10.1 / 10.9 billion to about USD 9 billion. This is in line with the overall economic meltdown that has seen low offtake of computing devices across all geographies and market segments. The official fourth quarter results will be published on January 15, 2009.

The current economic conditions have come bang in the midst of Intel’s own structural and efficiency program which has gobbled up a lot of cash and eaten into its gross margins. The credit crisis affecting banks and financial institutions is feared to impact flow of funds to Intel’s suppliers, which translates to delays in product launches and steady supply of Intel’s finished goods into the market. This same reason is expected to turn away retail customers who rely on credit for their purchases.

Intel’s equity investment portfolio is presently heavily flash-memory-domain centric, which is again exposed to the ongoing economic vagaries.

A resurgent competition, highlighted by the recently concluded Financial Analysts Day of AMD, threatening to make inroads into markets that were dominated by Intel, queers the pitch for the company.