Weak demand causes Intel to cut Q4 forecast

Intel expects revenue for fiscal 2008 to fall 23 percent compared to the year prior due to weaker demand for computer processors, the company said Wednesday.

Intel expects fourth-quarter revenue for fiscal 2008 to fall 23 percent compared to a year prior due to weaker demand for computer processors, the company said Wednesday.

The chip maker expects fourth-quarter revenue of $8.2 billion, down 20 percent compared to the previous quarter. Intel revised its fourth-quarter expectations ahead of its scheduled earnings announcement on Jan. 15.

Intel's grim news comes as technology companies are feeling the full brunt of the global economic crisis, as demand for software and hardware slows.

Intel also said it will take a much higher loss on other equity investments than it expected. The company will note a non-cash charge in the fourth quarter of $950 million related to its investment in Clearwire, which has a WiMax mobile broadband network.

Intel was one of five companies that invested $3.2 billion last year in Clearwire along with Google, Comcast, Time Warner Cable and Bright House Networks.

Clearwire's stock hit a peak of more than $17 per share in February 2008, but has steadily fallen. It traded Wednesday around $5.09 a share.

Overall, Intel expects to lose between $1.1 billion and $1.2 billion on equity investments rather than the $50 million it previously expected to lose.

Intel said it expects to have spent about $2.6 billion on research and development rather than $2.8 billion. Restructuring and asset impairment charges will be around $250 million, the same as the company's previous guidance.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags intelClearwire

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jeremy Kirk

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?