Intel revenue drops on weak economy, poor sales - severeinctiary

Intel Tuesday said its revenue and profit dropped during the third quarter of fiscal 2012 compared to the same period a year in the first place, and blamed a tough economy for in straitened circumstances sales of its products.

The society's profit was $2.97 billion for the after part termination Sept. 29, dropping from $3.47 billion according in the same quarter last year. The company reported earnings per share of $0.58, or $0.60 excluding one-time items. Analysts polled by Virgil Thomson Financial expected EPS of $0.49.

"Our ordinal-billet results reflected a continuing tough economic environment," said Intel CEO Paul Otellini in a statement.

Intel's revenue was $13.5 billion during the third quarter, dropping from the $14.2 billion in the comparable quarter last yr. Analysts awaited revenue of $13.2 billion.

Chip makers are troubled as the PC food market slumps. Advanced Micro Devices last week cold shoulder its gross auspicate for the third quarter, saying a weak economy was hurting demand for its products. Intel in September shaved accurate to $1 billion off its third revenue expectations from its preceding mind-set in anticipation of unskilled demand for its products. Intel previously aforementioned third-quarter gross would be between $13.8 billion and $14.8 billion, but lowered it to between $12.9 billion and $13.5 billion.

The PC market is in a decline, with research firm IDC last workweek locution that worldwide PC shipments in the third quarter dropped by 8.6 percent compared to the same quarter a year earliest. Still, analysts have said that the PC market could start recovering by the end of the fourth quarter after shipments of Windows 8 PCs pick up.

Revenue from Intel's PC Guest Aggroup, which deals in PC chips, was $8.6 cardinal, down 8 percent compared to the same quarter endmost yr. However, a bright spot was the Data Center field Grouping, which deals in server chips and recorded revenue of $2.7 billion, increasing by 6 percent yr-over-year.

Windows 8 arrives Oct. 26

PC makers are clearing off inventory of old Windows 7 PCs ahead of the launch of Microsoft's new OS, Windows 8. New PCs with Intel's Core processors cypher-named Ivy Span will become available starting on Oct. 26, and top PC makers Hewlett-Packard and Lenovo are expected to ship tablet with the blue-power Atom central processing unit code-named Trefoil Trail.

"As we look to the fourth quarter, we'Re pleased with the continued progress in Ultrabooks and phones and excited about the range of Intel-based tablets coming to market," Otellini aforementioned.

Intel is nonmoving making its way into the smartphone market, but scored a big win with Motorola, which proclaimed an Intel-based smartphone in September.

For the fourth quarter, Intel is expecting revenue to be $13.6 billion, advantageous or minus $500 million. In written comment, Intel's chief financial ship's officer Stacy Ian Smith said the outlook was cautious and takes into account concerns about a slowing enterprise market section and soft demand for products in consumer and mature markets.

Source: https://www.pcworld.com/article/461671/intel-revenue-drops-on-weak-economy-poor-sales.html

Posted by: severeinctiary.blogspot.com

Share this post