CNNMoney Intel Investors Disappointed

Intel investors disappointed
Shares of chipmaker plummet after revenue, earnings miss
By Amanda Cantrell, CNN/Money staff writer
January 17, 2006: 7:41 PM EST



NEW YORK (CNNMoney.com) - While Intel's quarterly profit rose 16 percent and the company reported record sales and operating income, the chip maker blamed lower than expected desktop computer shipments and prices for an earnings and revenue shortfall.

Those results, plus lower than expected guidance, caused shares of Santa Clara, Calif.-based Intel to plunge more than six percent in after-hours trading. Intel posted fourth-quarter sales of $10.2 billion and net income of $2.45 billion, or $0.40 cents per share. Wall Street analysts had been expecting revenues of $10.56 billion and earnings per share of $0.43. Operating income came in at $3.3 billion. Revenue also fell short of the company's own forecast of $10.4 to $10.6 billion, issued in the middle of the fourth quarter.

"2005 was a great year punctuated by a difficult December," said Intel CFO Andy Bryant on a conference call with analysts. "Unexpected issues (around) chipset supply and lower than expected demand in the desktop segment resulted in less growth than we usually see in the final weeks of the year."

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