Massive fall in Intel profits

16 Jan 2009

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Intel last night reported an 88pc fall in net profits for Q4. CEO Paul Otellini said that operating efficiencies will help the company weather the economic storm.

The company last night reported Q4 revenue of US$8.2bn, operating income of US$1.5bn, net income of $234m and earnings per share (EPS) of four cents.

The results included a billion-dollar negative impact from the previously announced reduction in the carrying value of the company’s Clearwire investments.

For 2008, Intel posted revenue of US$37.6bn, operating income of US$9 billion, net income of $5.3 billion and EPS of 92 cents.

Intel generated approximately US$11bn in cash from operations, paid cash dividends of $3.1 billion and used $7.1 billion to repurchase 324 million shares of common stock.

“The economy and the industry are in the process of resetting to a new baseline from which growth will resume,” said Paul Otellini, Intel president and CEO.

“While the environment is uncertain, our fundamental business strategies are more focused than ever. Intel will continue to extend its manufacturing leadership; drive product innovation; develop new markets and implement operating efficiencies that have already taken more than US$3bn out of our ongoing cost structure since 2006.

“Intel has weathered difficult times in the past, and we know what needs to be done to drive our success, moving forward. Our new technologies and new products will help us ignite market growth and thrive when the economy recovers,” Otellini said.

By John Kennedy

 

Caption: Paul S. Otellini, president and CEO of Intel Corporation

Editor John Kennedy is an award-winning technology journalist.

editorial@siliconrepublic.com