Intel has announced that the company's fourth-quarter results are expected to be below the company's previous outlook due to hard disk drive (HDD) supply shortages. The company now expects fourth-quarter revenues to be US$13.7 billion, plus or minus US$300 million, on both a GAAP and non-GAAP basis, lower than the previous expectation of US$14.7 billion, plus or minus US$500 million.
Sales of personal computers are expected to be up sequentially in the fourth quarter. However, the worldwide PC supply chain is reducing inventories and microprocessor purchases as a result of hard disk drive supply shortages. The company expects hard disk drive supply shortages to continue into the first quarter, followed by a rebuilding of microprocessor inventories as supplies of hard disk drives recover during the first half of 2012.
The company now expects the fourth-quarter gross margin to be 64.5%, plus or minus a couple of percentage points, lower than the previous expectation of 65%, plus or minus a couple of percentage points. The expectation for a non-GAAP gross margin is 65.5%, plus or minus a couple of percentage points, lower than the previous expectation of 66%, plus or minus a couple of percentage points.
All other expectations are unchanged, Intel said.