Bad news for tech:
Intel warns of sharply lower revenue
By The Associated Press
5:25 PM (GMT-05:00) Eastern Time (US & Canada) Nov 12, 2008
SANTA CLARA, Calif. (AP) _ Intel Corp. sharply cut its fourth-quarter sales projection Wednesday, indicating just how severely technology spending is being slammed to a halt in the economic turmoil.
The chip maker now expects revenue to come in at about $9 billion, down from a previous estimate of $10.1 billion to $10.9 billion, as personal computer makers look to cut back on their parts inventories.
Analysts polled by Thomson Reuters expected $10.3 billion, on average.
In response, Intel said it expects to cut spending on research and acquisitions to $2.8 billion in the fourth quarter, down from the previously expected $2.9 billion.
Earlier Wednesday, the research firm IDC predicted that worldwide technology spending will slow significantly in 2009. One strong signal came last week from Cisco Systems Inc., which was the first of the major technology companies to report earnings that included October and warned that orders dropped off abruptly during the month.
