Intel profit drops 39% as price cuts hurt margins
Intel’s profit plunged 39% in the fourth quarter, as the company signaled that its bottom line would continue to be pressured by a price war with rival Advanced Micro Devices.
That concern offset any upside from the chipmaker beating Wall Street’s lackluster fourth-quarter expectations. Shares of Intel recently fell 75 cents, or 3.4%, to $21.55 in extended trading. Intel said sales in the three months ended Dec. 30 totaled $9.7 billion, at the top of the company’s guided range of $9.1 billion to $9.7 billion in revenue. Net income was $1.5 billion, or 26 cents a share, compared to the profit of $2.5 billion, or 40 cents a share, that Intel posted a year ago this time. Analysts polled by Thomson Financial were looking for EPS of 25 cents on sales of $9.45 billion.
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