Intel Takes Big Charge For Quarter - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Business & Finance

Intel Takes Big Charge For Quarter

Chipmaker expects revenue to be between $8.5 billion and $8.7 billion for the fourth quarter, which ends Dec. 27.

Intel on Thursday raised the low end of its revenue estimate for the fourth quarter. But the chipmaker said it expects to take a hefty fourth-quarter goodwill impairment charge related to its Wireless Communications and Computing Group. The $600 million charge comes from the company lowering its expectations for this business unit.

Some of the group's products are shipping late, which prevented Intel from gaining the market share it wanted, said Intel chief financial and enterprise services officer Andy Bryant during a Thursday teleconference. "We've come to the conclusion that we have to take a charge, particularly over the DSPC acquisition."

Intel in 1999 spent $1.6 billion to buy DSP Communications Inc., a supplier of chipsets, reference design, software and other technologies for wireless handsets. DSPC personnel and assets have since become part of the Wireless Communications and Computing Group.

One of the Intel's few weak points during the third quarter was continued loss related to the Wireless Communications and Computing Group. Operating loss for the business was $124 million on revenue of $450 million. For the third quarter a year ago, the loss was $30 million on revenue of $586 million.

For the fourth quarter, which ends Dec. 27, Intel expects revenue to be between $8.5 billion and $8.7 billion, as compared to the previous range of $8.1 billion to $8.7 billion. Spending on research and development is expected to be $4.4 billion for the year, compared with the previous expectation of $4.3 billion.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Augmented Analytics Drives Next Wave of AI, Machine Learning, BI
Jessica Davis, Senior Editor, Enterprise Apps,  3/19/2020
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
Register for InformationWeek Newsletters
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll