Poor desktop computer sales for Intel caused very low fourth quarter sales results. Intel, the world’s largest manufacturer of microprocessors with clients ranging from small computer consulting firms to larger corporations reported revenue of $10.2 billion on January 17, which was just under the amount they had predicted in December 2005 and was an increase of nearly six percent from 2004. The company had hoped for revenue of $10.4-$10.6 billion.
The company also posted a net income of $2.45 billion, or 40 cents per share. While this amount was 16 percent beyond the profits for Intel in the same quarter in 2004, it was still three cents per share below what executives had expected and reported to analysts previously.
Spokespeople for Intel stated that the largest problem was desktop processors, which were difficult for the company to sell and their prices lower than anticipated. CFO Andy Bryant and Intel President and CEO Paul Otellini attributed the problem with processor sales to chipset shortages in 2005. Both are confident Intel will fix the problem by selling off the excess inventory and also by ensuring that in the future there is the right mixture of motherboards, chipsets and other computer hardware.
Added By: Computer Consulting 101
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