DOW JONES NEWSWIRES Intel Corp. (INTC) slashed its fourth-quarter revenue view, citing "significantly weaker than expected demand" across the company and overall uncertainty in the global economic climate.
The news is the latest sign of how the economic downturn is affecting the world's biggest companies and raises concerns about how bad things will get during the slowdown. Intel's shares fell 5.9% to $12.76 in after-hours trading.
The chip giant now expects fourth-quarter revenue to be between $8.7 billion and $9.3 billion, down from its October view of $10.1 billion to $10.9 billion. The lowered view, which was already seen as relatively conservative by some, left a still-murky picture of demand for tech products going into the traditionally busy fourth quarter.
Intel also lowered its gross-margin expectations to 55% from 59%, plus or minus a couple of points, amid the revenue drop and related charges. The company also said the quarter's spending will be cut by $100 million, to $2.8 billion.
After righting itself from a series of stumbles several years ago, Intel has been riding one of its strongest product lineups in years. It is trying to expand by promoting low-end laptop computers called netbooks and new pocket-sized devices for surfing the Internet.
Last month, the company reported its third-quarter net income grew 12%, but said future results were hard to predict and could "differ materially from expectations."
Shares of Intel, which have skidded 49% over the past year, were down 4 cents to $13.48 in after-hours trading.
-By John Kell, Dow Jones Newswires; 201-938-5285; John.Kell@dowjones.com;
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(END) Dow Jones Newswires
November 12, 2008 17:42 ET (22:42 GMT)

Publié le 12 novembre 2008 Copyright © 2008 Dowjones