Intel posts bleak fourth-quarter results

— 6:00 AM on January 16, 2009

After posting two successive revenue warnings, Intel has finally revealed the full extent of the damage. The company's fourth-quarter financial results statement is up, and conform to its most recent prediction, Q4 revenue worked out to just $8.2 billion—a 19% drop compared to the third quarter, and a 23% drop compared to a year before.

Intel still managed to turn a profit last quarter, but at $234 million, its net income was a small fraction of the $2.3 billion it posted a year ago. The chipmaker's gross margin also slumped from 58% to 53% over the same time period, a drop Intel attributes to "higher factory underutilization charges and higher inventory write-offs."

So, how are things shaping up this quarter? Intel says it's "not providing a revenue outlook at this time," although its internal guidance is for revenue to slide further to $7 billion. Gross margin should also dip to the "low 40s" because of "higher underutilization charges and 32nm start-up costs."

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