In spite of a staggering 90 percent decline in its profits during the last quarter, world’s largest chip maker Intel is planning to pour massive investments worth billions of dollars in manufacturing advanced products.
This Santa Clara based company on Thursday has registered 90 percent drop in its net income, with the profits touching a new low of $234 million, or a nominal 4 cents a share, as compared to the profit figures of $2.3billion, or 38 cents per share, for the similar period in 2007.
In addition, revenues for the fourth quarter for Intel have also plunged to $8.2billion, registering a 23 percent decline against the figures of last year, the company notified.
Citing the harsh economic environment, Intel’s CEO Paul Otellini said in a statement, “Intel has weathered difficult times in the past, and we know what needs to be done to drive our success moving forward”.
However, Intel’s boss went on to say that the company would continue to pool investments in manufacturing technology, in order to outpace its competitors.
One of the brightest spots in the results has been the netbook segment whose growth was phenomenal, rising 50 percent sequentially to $300 million. Not bad for the small Atom processor.
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Incidentally, Intel has already tipped off its investors about the sharp decline in revenues earlier this month, and the double-digit drop in its revenue figures clearly reflect the miserable conditions of PC sellers. Surprisingly, Intel shares rose by 4.21 percent after market, a clear indication that investors were expecting something worse.
Intel Looks to Invest Despite a Drop-Off
(International Herald Tribune)
(The New York Times)
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