Intel net profit down 90 percent

Intel reports fourth-quarter revenue of $8.2 billion, down 23 percent sequentially, and net income of $234 million, or 4 cents per share. Net profit is down from $2.27 billion a year ago - a massive 90 percent drop.

Intel Corporation today reported fourth-quarter revenue of $8.2 billion, operating income of $1.5 billion, net income of $234 million and earnings per share (EPS) of 4 cents. The results included a billion-dollar negative impact from the previously announced reduction in the carrying value of the company's Clearwire investments.

For 2008, Intel posted revenue of $37.6 billion, operating income of $9 billion, net income of $5.3 billion and EPS of 92 cents. Intel generated approximately $11 billion in cash from operations, paid cash dividends of $3.1 billion and used $7.1 billion to repurchase 324 million shares of common stock.

"The economy and the industry are in the process of resetting to a new baseline from which growth will resume," said Paul Otellini, Intel president and CEO. "While the environment is uncertain, our fundamental business strategies are more focused than ever. Intel will continue to extend its manufacturing leadership, drive product innovation, develop new markets and implement operating efficiencies that have already taken more than $3 billion out of our ongoing cost structure since 2006. 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."

Processor and chipset sales were significantly lower versus the third quarter while total processor average selling price (ASP) remained flat. Intel notes the Atom platform is doing really well, sales were up 50 percent to $300 million. The full report can be found over here.

Due to economic uncertainty and limited visibility, Intel refuses to provide an outlook for its first quarter results but states they'll continue to invest strongly in new products for the future. Analysts expected Intel to report fourth-quarter earnings of 4 cents a share on a revenue of $8.2 billion, so they were spot on. Intel's shares are up 1.81 percent in afterhours trading.