Intel's Q4 Earnings Call: Other Than That, Mrs. Lincoln, How Was the Play?
January 20, 2009
A financial analyst recently asked Intel’s (INTC) CEO what certain aspects of the quarter would have been like had the world economy not cratered. Paul Otellini, with pain in his voice, shot back: “That’s just like asking Mrs. Lincoln what the play was like." (See conference call transcript).
The quarter was bad. How bad? It was “only the second time in 20 years that our fourth quarter revenues were below the third quarter”. However, in the year 2000, revenue came in less than one percent below Q3. This time it was 19% below! Q4 is supposed to be Intel’s strongest quarter.
Guidance last quarter was meaningless. So this time they didn’t even bother. The CFO did however say that they were internally modeling for revenue of $7 billion. That will give analysts something to chew on. However, it could be way off. There’s a thick blanket of fog before them.
The problem, or one of the problems, is that inventory in the supply chain is still contracting. Customers are still burning through what they had before the world turned upside down. When the inventory burns off and orders re-emerge is unclear. They hope Q1, but it could be later.
In the meantime, Intel plods on.
[more of the article at]
seekingalpha.com |
