Chip giant Intel’s Q4 net profit fell from $2.3 billion to $234 million, representing a 90 per cent drop.
CEO Paul Otellini blamed the current economic climate for the figures, claiming the industry is in the process of realigning to a new ‘baseline’.
While the figures seem dramatic, they were in line with a warning Intel released earlier this month.
Fourth quarter revenue fell to $8.2 billion, down 19 per cent sequentially, while operating income was down 50 per cent to $1.5 billion.
For 2008 as a whole, revenue was recorded at $37.6 billion, down two per cent compared to the previous year. However operating income landed at $9 billion, which was up nine per cent year-on-year.
"The economy and the industry are in the process of resetting to a new baseline from which growth will resume," said Paul Otellini, Intel president and CEO. "While the environment is uncertain, our fundamental business strategies are more focused than ever. Intel will continue to extend its manufacturing leadership, drive product innovation, develop new markets and implement operating efficiencies that have already taken more than $3 billion out of our ongoing cost structure since 2006.
“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."