Intel chopped off its first quarter revenue expectation, by $300 million yesterday following a flaw they discovered in one of its chips, sources reported.
According to sources, the chip which is used with the company’s latest processor, the sandy bridge is not being shipped anymore, though they are fixing the flaw. The total amount needed to repair the chip and come up with a renewed version would be about $700 million.
Intel’s shares fell 1.6% after they made the announcement, but Intel insiders believe that this flaw will not take a toll on their entire year’s revenue as they plan to manufacture and ship the renewed version late February onwards, sources reported.
The largest chipmaker reportedly, is reducing its gross margin, by almost 4% points for the quarter, as some affected chipset units were sent out in the last quarter. For the first quarter the gross margin percentage will be down by 2 points.
But Intel recently has made a couple of important acquisitions such as McAfee, therefore it now expects first-quarter revenue of $11.7 billion, give or take $400 million, compared to prior expectation of $11.5 billion, give or take $400 million.
According to sources, the chip which is used with the company’s latest processor, the sandy bridge is not being shipped anymore, though they are fixing the flaw. The total amount needed to repair the chip and come up with a renewed version would be about $700 million.
Intel’s shares fell 1.6% after they made the announcement, but Intel insiders believe that this flaw will not take a toll on their entire year’s revenue as they plan to manufacture and ship the renewed version late February onwards, sources reported.
The largest chipmaker reportedly, is reducing its gross margin, by almost 4% points for the quarter, as some affected chipset units were sent out in the last quarter. For the first quarter the gross margin percentage will be down by 2 points.
But Intel recently has made a couple of important acquisitions such as McAfee, therefore it now expects first-quarter revenue of $11.7 billion, give or take $400 million, compared to prior expectation of $11.5 billion, give or take $400 million.
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