Bottomed Out?

Intel published its Q1 results yesterday. Year-on-year comparisons make for uncomfortable reading - revenues down by 26% and net income down by 55%. But, Intel's CEO, Paul Otellini, said: "We believe PC sales bottomed out during the first quarter and that the industry is returning to normal seasonal patterns". Nevertheless, Intel declined to issue a formal revenue projection for Q2. 

Intel Downgrade

Intel has announced preliminary Q4 results with revenues down 23% year-on-year to approximately USD8.2bn. Back on 12th November, a mere 8 weeks ago, Intel had already reduced its forecast Q4 revenues from USD10.1 - 10.9bn to around USD9bn.

As reported in the San Francisco Chronicle, the fact that Intel has had to revise its Q4 numbers twice "indicates how deeply the economic meltdown has damaged the semiconductor industry". "Consumers, singed by layoffs and falling home prices and stock portfolios, have scaled back their spending as well." More details will be available when Intel reports formally on 15th January.