Intel narrows Q4 revenue outlook, plans US$600M charge

Intel narrowed its previous guidance for fourth-quarter revenue Thursday on the strength of its microprocessor business, but will take a US$600 million charge in the quarter to account for reduced long-term growth prospects in its XScale processor business.

Fourth-quarter revenue is now expected to fall between $8.5 billion and $8.7 billion, the Santa Clara, California, company said in a release. During its third-quarter earnings conference call, The company forecast fourth-quarter revenue would fall between $8.1 billion to $8.7 billion.

Intel credited "solid seasonal growth" in its Intel Architecture business, which develops and markets its Pentium 4, Pentium M, and Xeon processors, as a reason behind the company's move to the high end of its previous range.

But the long-term growth prospects of the Wireless Communications and Computing Group (WCCG) business are not as high as Intel had once thought, the company said. Therefore, it will record a $600 million charge related to an impairment in goodwill.

The WCCG business consists of Intel's XScale processors for personal digital assistants and cell phones, its PXA800F chip for data-enabled cell phones, and its flash memory business.

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