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Intel Q4 hit by hard disk drive supply shortage

Intel Q4 hit by hard disk drive supply shortage

http://arafastartpt.com/?q=download-a-business-plan Intel Corp warned that fourth-quarter results would miss its previous forecast due to hard disk drive supply shortages caused by floods in Thailand.
 
Thailand said last month that output of hard disk drives fell 52.4 percent in October from a year earlier as the worst flooding in 50 years swamped factories.
 
Intel, the world’s largest chipmaker, said quarterly revenue is now seen at $13.7 billion, plus or minus $300 million, down from a previous forecast of $14.7 billion. Analysts’ average forecast is $14.65 billion, according to Thomson Reuters I/B/E/S.
 
Intel said non-GAAP gross margin is expected to be around 65.5 percent versus previous expectations of 66 percent.
 
The company said that it anticipated sales of personal computers to be up in the fourth quarter from the third quarter.
 
Intel said it “expects hard disk drive supply shortages to continue into the first quarter, followed by a rebuilding of microprocessor inventories as supplies of hard disk drives recover during the first half of 2012”.
 
Hendi Susanto, research analyst at Gabeli & Co., said he was not surprised Intel had lowered its outlook, considering rival Texas Instruments last week cut its fourth-quarter forecast.
 
“It’s temporary. Most people are expecting the hard disk drive supply will be constrained until at least the end of second quarter 2012,” Susanto said.
 
“The hard disk drive supply constraints will affect mostly the personal hard drive business, instead of enterprise one,” Susanto said.
 
Intel shares were down 4.2 percent to $23.96 in morning trading Monday.

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