When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works.

Intel to take $600 million impairment charge in Q4

Intel Corp. today (December 4, 2003) said it would take a fourth-quarter goodwill impairment charge of about $600 million related to its Wireless Communications and Computing Group (WCCG).

Intel said the long-term growth expectations for this business are no longer projected to be as high as previously expected, but the company did not elaborate on the specifics of the charges. The net earnings-per-share impact of the assumed $600 million goodwill impairment charge and the other anticipated tax-related items is $.06 per share.

In Q4, Intel expects revenue to be between $8.5-to-$8.7 billion, as compared to the previous range of $8.1-to-$8.7 billion. Intel reported third-quarter revenue of $7.8 billion and net income of $1.7 billion, or $0.25 per share.

The company's processor business is experiencing solid seasonal growth in Q4, while demand for communications products remains on track with the company's expectations for the quarter.

However, it's unclear if Intel will meet analysts' estimates. The microprocessor giant is projected to earn $0.30 a share on sales of $8.6 billion for the fourth quarter, said Michael McConnell, an analyst with Pacific Crest Securities Inc.

The gross margin percentage is expected to be 62 percent in Q4, plus or minus a point, compared to the previous expectation of 60 percent, plus or minus a couple of points. R&D spending is expected to be $4.4 billion for the year, as compared to the previous expectation of $4.3 billion. Expenses are expected to be approximately $2.3 billion, at the high end of the previous expectation of $2.2-to-$2.3 billion.

News source: EBN - Intel to take $600 million impairment charge in Q4

Report a problem with article
Next Article

US stymies UN net body

Previous Article

Sun Strikes Software Deal With United Kingdom

Join the conversation!

Login or Sign Up to read and post a comment.

-1 Comments - Add comment