Intel has said that its earnings had fell below what they made last year, however, they managed to meet the Wall Street forecasts, even though a massive writedown and PC sales crippling the demand for microprocessors were some of the causes.
The biggest maker of semiconductors worldwide has also said that it earned 4 cents a share in Q4 to make $8.2 billion, down from last year’s 38 cents a share to make a profit of $10.71 billion. This year’s amount were also $2 billion short of its initial estimates.
The massive writedown was from its investment in Clearwire, which specialises in WiMax technology that Intel is building in its chips, after fears that the economic climate will derail its ambitions to roll out the network around the United States.
Also, the profits come as IDG and Gartner report that sales in PC have been the worst in six years, and also say that the slump might continue until 2010 – which could bring pressure to Microsoft’s Windows 7 to perform better than Vista.
Intel has said that it forecasts to make in this first quarter of 2009 a value of around $7 billion in sales, most likely to soothe investor’s worries about the company.
However, the bad news wasn’t enough to batter the stock, with stocks rising 21 cents, or 1.6 percent, to close at $13.29; and in after-hours trading, it hit $13.58.