Intel Corporation today announced preliminary fourth-quarter financial
information with revenue of approximately $8.2 billion, down 20 percent
sequentially and down 23 percent year over year. Revenue will be lower
than the company’s previous expectation, provided on Nov. 12, 2008, as a
result of further weakness in end demand and inventory reductions by its
customers in the global PC supply chain.
The preliminary estimate of gross margin for the fourth quarter is at
the bottom of the previous expectation of 55 percent, plus or minus a
couple of points.
As a result of the year-end market price of Clearwire Corporation stock,
Intel will impair the value of its investment, resulting in a non-cash
charge to fourth-quarter earnings of approximately $950 million. The
company now expects the net gain or loss from equity investments and
interest and other to be a loss of between $1.1 billion and $1.2 billion
versus a previous expectation of a loss of approximately $50 million.
Spending (R&D plus MG&A) is expected to be approximately $2.6 billion,
lower than the previous expectation of approximately $2.8 billion.
Restructuring and asset impairment charges are expected to be
approximately $250 million, unchanged.
The company is continuing to review its fourth-quarter results and will
provide additional information in its previously scheduled earnings
announcement on Jan. 15. A news release will be distributed after close
of market, and a public webcast will be available at 2:30 p.m. PST on
the Investor Relations Web site at intc.com. The company is currently
observing the pre-earnings quiet period and will not make further
comments about its fourth-quarter results in the interim.
Cautionary Statement
The above statements contain estimates of the company’s preliminary
fourth-quarter financial information. The company is continuing to
review its financial and operating results, and actual results may
differ materially from those contained herein. Among the important
factors that could cause actual results to vary from those contained
herein are identification of additional assets such as debt or equity
securities or inventories that require an impairment charge to be
recorded. In addition, the preliminary fourth-quarter financial
information could vary from the above estimates based on the final
accounting.
Intel (NASDAQ:INTC), the world leader in silicon innovation, develops
technologies, products and initiatives to continually advance how people
work and live. Additional information about Intel is available at www.intel.com/pressroom
and blogs.intel.com
Intel and the Intel logo are trademarks of Intel Corporation in the
United States and other countries.
* Other names and brands may be claimed as the property of others.
