Weak memory pricing hurts Intel Q4 revenue

Results fall short of estimates

Intel Corp.'s financial results for the fourth quarter of 2007 fell short of analysts' estimates in part because of weak prices for memory chips.

The company recorded revenue of quarterly $10.7 billion, up 10.5% from the same period a year earlier, but lower than the $10.8 billion consensus estimate of analysts polled by Thomson Financial.

Revenue from computing-related products was as expected, but revenue related to NAND memory was lower than expected, Intel said in a statement (pdf format).

The company reported quarterly net income of $2.27 billion, below analysts' estimates of $2.38 billion. Earnings per share were 38 cents.

Intel in November rolled out its next-generation Penryn processors, which the company claims provide better power efficiency and graphics performance than its earlier chips did. Manufactured using the 45-nanometer process, Penryn chips were first launched for workstations; in early January, Intel rolled out 45nm chips for servers, laptops and desktops.

Intel is expected to launch processors for its Montevina platform, an upgrade to its mobile Centrino platform, later this year. It will also roll out Menlow processors, for ultramobile computers, later this year. Intel is also working on a new chip architecture code-named Nehalem, which will appear in late 2008.

Copyright © 2008 IDG Communications, Inc.

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