Tags: Intel | profit | Outlook | earnings

Intel: Fourth-Quarter Revenue Will Miss Forecast on Hard-Disk Drive Shortage

Monday, 12 Dec 2011 10:12 AM

Intel cut its fourth-quarter revenue outlook Monday due to massive flooding in Thailand, sending shares for the entire sector downward.

Only the financial sector, dogged by renewed anxiety over the debt crisis in Europe, fell more sharply.

Intel, based in Santa Clara, now expects fourth quarter revenue of between $13.4 billion and $14 billion. It had previously forecast revenue of $14.2 billion to $15.2 billion during the key holiday quarter.

Wall Street was looking for revenue of $14.65 billion, according to a poll by FactSet, and company shares tumbled 5 percent.

Intel is the world's largest maker of microprocessors, the "brains" of computers. Shares of rival Advanced Micro Devices Inc., slipped more than 5 percent. Intel did say that it expects PC sales to be up sequentially during the quarter. But it said revenue will be lower than expected because companies are reducing inventories and microprocessor purchases due to shortages of hard drive.

Jefferies analyst Mark Lipacis said the reduced revenue call at Intel was only a matter of time. Last month, AMD announced that it would cut 1,400 jobs with PC sales slowing and manufacturing delays. Texas Instruments Inc. lowered its fourth-quarter guidance last week.

Floods in Thailand have disrupted computer production because so many companies have facilities there. Research firm iSuppli said earlier it expects global PC shipments to total 84.2 million in the first three months of 2012, down from a previous estimate of 88 million. Intel also said it expects hard drive supply shortages to continue into the first quarter.

Shares of Intel Corp. fell $1.21 to $23.81 in afternoon trading Monday. AMD's shares slid 27 cents, or 4.8 percent, to $5.28. Shares of Texas Instruments, meanwhile, dropped 91 cents, or 3 percent, to $29.04.

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Intel cut its fourth-quarter revenue outlook Monday due to massive flooding in Thailand, sending shares for the entire sector downward. Only the financial sector, dogged by renewed anxiety over the debt crisis in Europe, fell more sharply. Intel, based in Santa Clara, now...
Intel,profit,Outlook,earnings
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2011-12-12
Monday, 12 Dec 2011 10:12 AM
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