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Intel's Fourth-Quarter Business Below Expectations

SANTA CLARA, Calif.—(BUSINESS WIRE)—November 12, 2008— Intel Corporation today announced that fourth-quarter business will be below the companys previous outlook. The company now expects fourth-quarter revenue to be $9 billion, plus or minus $300 million, lower than the previous expectation of between $10.1 billion and $10.9 billion. Revenue is being affected by significantly weaker than expected demand in all geographies and market segments. In addition, the PC supply chain is aggressively reducing component inventories.

The companys expectation for fourth-quarter gross margin is now 55 percent plus or minus a couple of points, lower than the previous expectation of 59 percent plus or minus a couple of points, primarily due to lower revenue and other charges associated with the weaker-than-expected demand environment.

Spending (R&D plus MG&A) is expected to be approximately $2.8 billion in the fourth quarter, lower than the previous expectation of approximately $2.9 billion, primarily due to lower revenue- and profit-related spending. For the full year, spending is expected to be approximately $11.4 billion, lower than the previous expectation of approximately $11.5 billion.

All other expectations are unchanged.

Status of Business Outlook

Todays announcement replaces the update previously scheduled for Dec. 4. From the close of business on Nov. 28 until publication of the companys fourth quarter results on Jan. 15, 2009, Intel will observe a Quiet Period during which the Business Outlook disclosed in the companys press releases and filings with the SEC should be considered to be historical, speaking as of prior to the Quiet Period only and not subject to an update by the company.

Risk Factors

The above statements and any others in this document that refer to plans and expectations for the fourth quarter, the year and the future are forward-looking statements that involve a number of risks and uncertainties. Many factors could affect Intels actual results, and variances from Intels current expectations regarding such factors could cause actual results to differ materially from those expressed in these forward-looking statements. Intel presently considers the following to be the important factors that could cause actual results to differ materially from the corporations expectations.

A detailed discussion of these and other factors that could affect Intels results is included in Intels SEC filings, including the report on Form 10-Q for the quarter ended Sept. 27, 2008.

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

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Contact:

Intel Corporation
Michael Sullivan, 408-765-9785 (Investor Relations)
Tom Beermann, 408-765-6855 (Press Relations)