Intel Corp. forecasted Wednesday that its revenue for the 2008 fourth quarter will fall 23 percent to $8.2 billion citing further weakness in demand and inventory reductions by its worldwide PC producer customers which use Intel's chips.
The world's top chip maker was expected to have sales of $8.74 billion according to analysts forecasts gathered by Thomson Reuters. Intel had previously expected 2008 4Q sales of $10.1 billion but lowered the predictions to $9 billion in November.
For the same quarter, Intel also announced an impairment charge of about $950 million related to its investment in Clearwire Corp. and expects gross margin to be at the bottom of its earlier expectation of 55 percent plus or minus a few percentage points.
In 2007, the company had sales of $10.7 billion in the 4Q. This year Intel is losing orders as PC makers reduce production.
Shares of Intel Corp. dropped 5.73 percent to $14.48 a share by 10:32 a.m. EST in the NASDAQ.