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Intel's fourth-quarter revenue to be below expectations due to HDD supply shortages

Intel fourth-quarter to be below expectations due to Thailand floods and HDD supply shortages

| Business, Financial & Legal News | Posted: Dec 13, 2011 3:29 am

Intel have just announced that their fourth-quarter results are going to be lower than their previous outlook due to the Thailand floods and the resulting shortage on hard drive supplies. Intel now expects a fourth-quarter revenue of $13.7 billion, plus or minus $300 million, on both a GAAP and non-GAAP basis, lower than the previous expectation of $14.7 billion, plus or minus $500 million.

 

TweakTown image news/2/1/21875_03_intel_s_fourth_quarter_revenue_to_be_below_expectations_due_to_hdd_supply_shortages.png

 

Sales of PCs are expected to be up sequentially in Q4. But, the worldwide PC supply chain is reducing inventories and microprocessor purchases as a result of hard disk drive supply shortages. Intel expects the HDD supply shortages to continue into Q1 2012, followed by a rebuilding of microprocessor inventories as supplies of HDDs recover during 1H 2012.

 

Intel expects the fourth-quarter gross margin to be 64.5-percent, plus or minus a couple of percentage points, lower than the previous expectations of 65-percent, plus or minus a few percentage points. The expectation for a non-GAAP gross margin is 65.5-percent, plus or minus a few percentage points, lower than the previous expectations of 66-percent, plus or minus a few percentage points.

 

All other expectations from Intel remain unchanged.

NEWS SOURCES:Newsroom.intel.com

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