Intel expects big margin drop in Q4
Intel had Q3 revenues of $13.5bn which was 5.45% down on Q3 2011. Profit of $2.97bn was 14% down on the $3.47bn of Q3 2011.
Intel’s PC revenue of $8.6bn was flat compared to Q2 and down 8% y-o-y; server chip revenue of $2.7bn was down 5% sequentially and up 6% y-o-y; other product revenue was $1.2bn, up 6% sequentially and down 14% y-o-y.
Gross margin was 63.3%. However Intel expects its Q4 gross margin to drop 6% to 57%.
Q4 revenues are expected to be $13.6bn. Capex has been cut from 12.1-12.9bn to $11.3bn.
Cash remains at $14.8bn with debt of $7.2bn.