reported a massive drop in its fourth-quarter profit and revenue Thursday, as the tech bellwether continues to feel the
of the PC slump.
The Santa Clara, Calif.-based firm reported fourth-quarter earnings of 4 cents a share on net income of $234 million, down from earnings of 38 cents a share and net income of $2.27 billion in the same period last year. Analysts had estimated earnings of 4 cents a share.
Intel reported fourth-quarter revenue of $8.2 billion, a 23% drop from $10.7 billion in the year-ago quarter, but in line with analyst estimates.
For 2008, Intel reported revenue of $37.6 billion, down 2% from $38.3 billion in 2007.
"The economy and the industry are in the process of resetting to a new baseline from which growth will resume," said Intel CEO Paul Otellini, in a statement Thursday. "Intel has weathered difficult times in the past, and we know what needs to be done to drive our success moving forward."
Intel's plummeting profit and its slumping sales were not a complete surprise. The company lowered its
last week, its
of sales guidance in two months. In November, Intel cut its sales forecast to between $8.7 billion and $9.3 billion, down from between $10.1 billion and $10.9 billion previously.
Otellini recently described the current economic
as the worst he'd seen in his lifetime, and Intel, like its rival
and PC manufacturer
from consumers and enterprises.
Intel's shares rose 39 cents, or 2.93%, to $13.67, in extended trading.