Friday January 16, 09:48 AM
Intel profit plunges 90 pct in fourth quarter
NEW YORK (AFP) - The economic slowdown and slumping demand for personal computers sent Intel (NASDAQ: INTC - news) 's net profit sharply lower as the world's biggest computer chip maker reported its fourth-quarter results.
The Santa Clara, California-based company said on Thursday net profit in the last three months of the year plunged to 234 million dollars, down 90 percent from a year ago, on revenue of 8.2 billion dollars.
Intel reported profit of 2.0 billion dollars in the third-quarter of 2008, on 10.2 billion dollars of revenue.
Intel also reported on Thursday that net profit for the year declined 24 percent to 5.3 billion dollars on revenues of 37.6 billion dollars, two percent lower than a year ago.
Intel lowered its fourth-quarter projections twice in the past few months and the results did not surprise analysts. Earnings of 92 cents per share for the year were in line with expectations.
Intel's share price rose 3.09 percent in after-hours trading to 13.70 dollars after gaining 1.61 percent during the day.
Intel has also warned that it expects even worse results this quarter than the previous three months, with expected revenues of seven billion dollars.
"The economy and the industry are in the process of resetting to a new baseline from which growth will resume," Intel president and chief executive Paul Otellini said in a statement.
"While the environment is uncertain, our fundamental business strategies are more focused than ever," he said. "Intel has weathered difficult times in the past, and we know what needs to be done to drive our success moving forward.
"Our new technologies and new products will help us ignite market growth and thrive when the economy recovers," Otellini said.
Intel last lowered its fourth-quarter outlook just a week ago, citing "further weakness in end demand and inventory reductions by its customers in the global PC supply chain."
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