Chip-making giant Intel reports 6% fall in net income

 

The world's biggest chipmaker, Intel, reported a 6% fall in net income for the three months to September and cut its fourth quarter outlook for its important server-chip business.

Net income fell to $3.11bn (£2.03bn) compared with a year ago for the personal computer giant.
As its PC business continued to slow, the firm had relied on sales of its chips that go in data servers.
But the firm said demand for its server-chips was slowing.
However, Intel said its latest quarterly numbers were largely in line with expectations and that the results were "solid".
"We executed well in the third quarter and delivered solid results in a challenging economic environment," said Intel's chief executive Brian Krzanich.
The US-based firm also noted the introduction of its "breakthrough 3D XPoint technology, the industry's first new memory category in more than two decades."

Acquisitions

Reports have said that Intel's bid to buy Altera Corp for $6.7bn in an attempt to expand parts of its chip business could be given the go-ahead from the EU as soon as this week.
The deal had been cleared by the US Department of Justice, but there were several antitrust issues surrounding it.
Intel hoped that its buy-up of Altera would help boost its higher-margin chip business, particularly for data-servers - and help it focus on chips for cars and watches, among other devices.
In a report released in line with its latest quarterly results, the firm said its outlook for the fourth quarter "does not include the potential impact of any business combinations, asset acquisitions, divestitures, strategic investments and other significant transactions that may be completed after October 13."