A billion-dollar writedown one of the reasons for the fall
Intel has reported a 90% decline in net income to $234m for the fourth quarter 2008, against $2.27 billion in the year-ago quarter, on revenue down 23% at $8.2 billion. It attributed the decline to slow end-market demand and a billion-dollar writedown on its Clearwire investment.
Operating income during the quarter fell 49% to $1.5 billion, while diluted EPS fell 89% to $0.04. Revenue from Intel Atom microprocessors and chipsets grew 50% sequentially to $300m.
The company said digital enterprise revenue fell 25% to $4.5 billion, mobility revenue fell 15% to $3.5 billion, and revenue from others fell 65% to $225m. Geographically, Asia Pacific revenue fell 24% to $4.06 billion, while Americas revenue fell 26% to $1.55 billion. Europe revenue fell 27% to $1.62 billion, while Japan revenue fell 6% to $980m.
For fiscal 2008, the company reported a 24% decline in net income to $5.3 billion, compared to $6.97 billion a year ago, on revenue down 2% at $37.6 billion.
Paul Otellini, president and chief executive at Intel, said: The economy and the industry are in the process of resetting to a new baseline from which growth will resume. 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 $3 billion out of our ongoing cost structure since 2006.