Sign in Subscribe
Semiconductor industry

Intel's Fourth-Quarter Results Expected to Fall Below Outlook Amid Hard Disk Drive Supply Shortages

Strategic Insights

— 1 min read

Intel Corporation has revealed that its fourth-quarter results will likely be lower than the company's previous expectations due to supply shortages in hard disk drives. The company now anticipates fourth-quarter revenue to be around $13.7 billion, which is below the previous projection of $14.7 billion. Despite this, sales of personal computers are expected to increase sequentially in the fourth quarter. However, the shortage of hard disk drives is affecting the worldwide PC supply chain, leading to reduced inventories and microprocessor purchases.

Key Takeaways:

  • Intel's fourth-quarter revenue is expected to be $13.7 billion, plus or minus $300 million, on both a GAAP and non-GAAP basis.
  • The company's previous expectation was $14.7 billion, plus or minus $500 million.
  • Hard disk drive supply shortages are expected to continue into the first quarter before recovering during the first half of 2012.
  • The company's gross margin for the fourth quarter is expected to be 64.5 percent, plus or minus a couple of percentage points.
  • The non-GAAP gross margin is expected to be 65.5 percent, plus or minus a couple of percentage points.
  • Sales of personal computers are expected to be up sequentially in the fourth quarter.
  • The worldwide PC supply chain is reducing inventories and microprocessor purchases due to hard disk drive supply shortages.
  • Peter Moore, Microsoft's marketing executive, has stated that the PC industry is facing a "perfect storm" of challenges, including hard disk drive supply shortages.

Statistics:

  • Fourth-quarter revenue: $13.7 billion, plus or minus $300 million (GAAP and non-GAAP).
  • Previous expectation: $14.7 billion, plus or minus $500 million.
  • Gross margin (fourth quarter): 64.5 percent (plus or minus a couple of percentage points).
  • Non-GAAP gross margin (fourth quarter): 65.5 percent (plus or minus a couple of percentage points).

Sources:

  • Electronics Newsweekly editors
  • VerticalNews.com
  • Copyright 2011, Electronics Newsweekly

Read more