Intel Just Warned...

Discussion in 'Stocks' started by capmac, Nov 12, 2008.

  1. capmac


    Intel warns on quarter, weak demand everywhere

    Wednesday November 12, 2008, 5:53 pm EST

    SAN FRANCISCO (Reuters) - Microchip maker Intel Corp on Wednesday warned that its revenue would be about 14 percent below its previous forecast due to weak demand around the globe and in all market segments, and its shares fell 7 percent.

    The biggest maker of chips for personal computers said the PC industry supply chain was aggressively reducing component inventories. The company, seen as a technology bellwether, did not single out the weak global economy, but investors are concerned the world is on the verge of recession.

    "It means consumer's have basically shut down for the holidays," said Charter Equity Research analyst John Dryden. "It's so far below what they had expected .... The company had outlined weakness in enterprise but not the consumer yet."

    Intel forecast fourth-quarter revenue of $9 billion, plus or minus $300 million. That compares with its previous forecast of $10.1 billion to $10.9 billion, or 14 percent below the $10.5 billion midpoint.

    The company also sharply dropped its gross profit margin outlook to 55 percent, plus or minus a couple of percentage points, from 59 percent, plus or minus a couple of percentage points and said it would cut spending.

    Shares of Intel dropped to $12.61, and IBM dropped about 1 percent after the warning.

    (Reporting by Peter Henderson; editing by Richard Chang)
  2. lol you're an hour late