The world's largest semiconductor maker, Intel, suffered sales and profits loss as it reported a profit of $2.97 billion for the quarter ending Sept. 29, which is a drop from $3.47 billion in the same quarter last year.
The company blamed the tough economy for poor sales of its products and reported earnings per share of $0.58, or $0.60 excluding one-time items.
"Our third-quarter results reflected a continuing tough economic environment," said Paul Otellini, Intel president and CEO. "The world of computing is in the midst of a period of breakthrough innovation and creativity. As we look to the fourth quarter, we're pleased with the continued progress in Ultrabooks and phones and excited about the range of Intel-based tablets coming to market."
According to the company statement, it registered quarterly revenue of $13.5 billion, operating income of $3.8 billion, net income of $3 billion and EPS of $0.58. The company generated approximately $5.1 billion in cash from operations, paid dividends of $1.1 billion and used $1.2 billion to repurchase stock.
The company registered a PC client group revenue of $8.6 billion, flat sequentially and down 8 percent year-over-year. Data center group revenue is $2.7 billion, down 5 percent sequentially and up 6 percent year-over-year. Other Intel architecture group revenue is reported to be at $1.2 billion, up 6 percent sequentially and down 14 percent year-over-year.
Intel says the gross margin is at 63.3 percent, which is 1.3 percentage points above the midpoint of the company's updated expectation of 62 percent. It spent nearly $4.6 billion on R&D and MG&.
