Computer giant Intel today posted higher third-quarter earnings but cautioned that revenue for the holiday sales-driven fourth quarter would be lower than Wall Street had expected.
The company, which employs 3,200 staff at its Leixlip plant near Dublin, said there was no sign yet of a recovery in the personal computer industry.
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Intel shares fell as much as 14 per cent after the earnings report, as the chipmaker posted per-share earnings below consensus estimates and forecast fourth-quarter revenues below current Wall Street expectations.
Intel forecast fourth-quarter revenue of between $6.5 billion (€6.61 billion) and $6.9 billion (€7.01 billion), implying sales ranging from flat with the third quarter to up by about 6 per cent - far less than 10 per cent to 15 per cent increase that is typical for Intel and the personal computer industry.
In last year's fourth quarter, Intel posted revenue of $6.98 billion. In addition, Intel lowered its capital spending budget for the year to about $4.7 billion, lower than the previous expectation of $5.0 billion to $5.2 billion.
"They're still waiting for a recovery and have not seen it," said Mr Hans Mosesmann, an analyst at Prudential Securities. "This is bad news and worse than a lot of people were expecting," he added.