Intel Posts Disappointing Third Quarter Results, Spends Money to Cheer Up

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News Posted: Mon, Aug 30 2010 11:55 AM
Intel, the largest chip maker in all the known galaxies, announced third-quarter revenue will be below what the company was initially expecting. The Santa Clara chip maker now says it will likely pull in $11 billion in revenue (plus or minus $200 million, which to Intel is like loose change in the pocket), compared to the previous expectation of up to $12 billion.

But don't go worrying yourself over the state of Intel's business. Despite missing the mark for third-quarter revenue, the company remains in strong shape. Either that, or the company is coping with disappointment the same way the rest of us do -- by going on a shopping spree.

Earlier in the month, Intel announced plans to acquire security vendor McAfee for $7.68 billion, followed by the $1.4 billion acquisition of Infineon's wireless unit. That's a little over $9 billion spent in less than 30 days, which puts a slightly disappointing third-quarter into perspective.

Going forward, Intel could be in a for a somewhat bumpy financial ride. The chip maker disclosed to investors several "risk factors," including the potential impact of "adverse economic, social, political, and physical/infrastructure conditions in countries where Intel, its customers or its suppliers operating, including military conflict and other security risks, natural disasters, infrastructure disruptions, health concerns, and fluctuations in currency exchange rates." That was just one of 10 potential risks Intel recently laid out.
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realneil replied on Mon, Aug 30 2010 9:07 PM

They may just have enough cash to screw around like this for a long, long time.


What Risk?

Dogs are great judges of character, and if your dog doesn't like somebody being around, you shouldn't trust them.

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Inspector replied on Mon, Aug 30 2010 11:33 PM

Loss change please? :D

Always spending, there's no stopping them! Where is their chip maker located?

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lonewolf replied on Tue, Aug 31 2010 12:03 AM

I would not want to be a shareholder about now. Intel always behaved like dead money now it will really go down in price. With that said this does not bode well for AMD or NVDA. As Intel always leads and Wall Street takes their estimates seriously on the state of the PC industry as a whole and rightfully so.

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