Intel's profit and revenue down, stock dips

Posted on Wednesday, January 17 2007 @ 14:02:37 CET by Thomas De Maesschalck
Intel announced its fourth-quarter financial results yesterday. The company's stock dipped more than 4% as quarterly profit fell 40 percent. The huge drop in profits was caused by the price war with AMD, Intel's reorganization and the switch to the 45nm production process.

Intel made $1.5 billion net profit in the fourth quarter, or 26 cents per share, compared to $2.45 billion, or 40 cents per share, a year earlier. Revenue was 5 percent down from a year ago to $9.7 billion, but better than the forecasted $9.4 billion.

The chip giant also says it expects first quarter revenue between $8.7 billion and $9.3 billion, compared to the average Wall Street forecast of $8.9 billion.

Intel's gross-margin in the fourth quarter was 49.6 percent. This is 0.5 percent more than in the third quarter but a lot less than the 61.8 percent in 2005. For the first quarter of this year Intel expects a gross margin of 49 percent and for the whole year about 50 percent.

Last week AMD's stock dropped 11 percent as the company warned for lower than expected profits.

Loading Comments