09:01 INTC Intel sees Q4 revs of $8.2 bln vs $8.74 bln First Call consensus
09:05 INTC Intel cuts Q4 revenue guidance (15.37 ) -Update-
Co announces that Q4 rev will be lower than the co's previous expectation provided on Nov 12, sees revs of $8.2 bln vs $8.74 bln First Call consensus. Co cites further weakness in end demand and inventory reductions by its customers in the global PC supply chain. The preliminary estimate of gross margin for Q4 is at the bottom of the previous expectation of 55%, plus or minus a couple of points. As a result of the year-end market price of Clearwire stock, Intel will impair the value of its investment, resulting in a non-cash charge to Q4 earnings of approx $950 mln. The company now expects the net gain or loss from equity investments and interest and other to be a loss of between $1.1 billion and $1.2 billion versus a previous expectation of a loss of approximately $50 million. Spending (R&D plus MG&A) is expected to be approximately $2.6 billion, lower than the previous expectation of approximately $2.8 billion. Restructuring and asset impairment charges are expected to be approximately $250 million, unchanged. The company is continuing to review its fourth-quarter results and will provide additional information in its previously scheduled earnings announcement on Jan. 15. (Stock is trading at ~14.70 in pre-mkt.)
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