Following its profit warning last week, the world's biggest chip manufacturer Intel has shown a 90% decline in net profit for its fourth quarter.
Intel yesterday released its Q4 and annual results reporting Q4 revenue of $8,2-billion, operating income of $1,5-billion, net income of $234-million and earnings per share (EPS) of 4 cents. The results, it says, included a $1-billion negative impact from the previously announced reduction in the carrying value of the company's Clearwire investments.
For 2008, Intel posted revenue of $37,6-billion, operating income of $9-billion, net income of $5,3-billion and EPS of 92 cents. Intel generated approximately $11-billion in cash from operations, paid cash dividends of $3,1-billion and used $7,1-billion to repurchase 324-million shares of common stock.
"The economy and the industry are in the process of resetting to a new baseline from which growth will resume," says Paul Otellini, Intel president and CEO. "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," he adds. "Intel has weathered difficult times in the past, and we know what needs to be done to drive our success moving forward. Our new technologies and new products will help us ignite market growth and thrive when the economy recovers."