There's profit, Jim, but not as we (used to) know it.
Intel’s Q4 financials are out and as warned when it lowered its Q4 revenue expectations in November, the results are less impressive than we’ve previously been able to report.
Q4’s figures put Intel’s revenue at $8.2 billion (~£5.6), translating to a net income of $234 million (~£158). 2008’s overall revenue was $37.6 billion (~£25.5), while the company’s net income over the year was $5.3 billion (~£3.6).
In isolation, all well and good. $5.3 billion is a lot of money to have floating around in the coffers. But that’s not considering net income in Q4 2008 was an astonishing 90 per cent down from the same period last year, or that year on year net income was down 24 per cent in 2008.
Paul Otellini, Intel’s president and CEO, was able to remain reasonable optimistic, commenting: “The economy and the industry are in the process of resetting to a new baseline from which growth will resume. While the environment is uncertain, our fundamental business strategies are more focused than ever. Intel has weathered difficult times in the past, and we know what needs to be done to drive our success moving forward. Our new technologies and new products will help us ignite market growth and thrive when the economy recovers.”
While profit may be down, then, Intel can surely take some solace in the very fact that it is at least profitable. Which is more than can be said for many of its peers.
Intel Q4 financial report (PDF).